Posted on: 10-07-10 20:21:12
Some of the must-reads are:
- Shakespeare's Primer (google for it)
- Stock Investing for Canadians (Andrew Dagys & Paul Mladjenovic)
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Your posts generally are THE BEST in the forum. One always learns something.
Can somebody give him a GOLD MEDAL ?
Quote:
Originally posted by ftfl
Quote:
Originally posted by birentoronto
Thanks for the tip. I will print out the article and read it.
1) what do you mean by the below
>>There could be a few more extra dollars in savings that you will only get to know after plugging the dollar figures into it.
2) What is "paper trading" ? You mean to be a day trader? Do you think its a good idea?
_______________________________________________________
A Tax software maximizes the profits and also sees the other entries that you have made or will make in such questions that they pose in it.
To give you an example. it will ask if there are any other expenses associated with the sale and purchase?
You have the cost of a computer, which depreciates on an yearly basis, there might be Data feed costs, Fees for the Internet provider, accounting fees if you did use their services etc., All of these come into play when you compile your balance sheet.
2) 'Paper Trading' ( is a general term or) embraces a wide array of things. You have just started to look into the field of trading and as an encouragement, I said that you are set well on your way to do Paper Trading. Here you are doing the exploring without ever losing a cent. There are steps that one has to learn prior to actually deploying their financial resources.
In short, you are doing well and are progressing in the right direction. And in continuation, if can get hold of a Globe and Mail and see the stocks performance column, you will see a header with all of these terms in it. Get to know what it is and what they mean and how to use them and watch out for the figures in the future. Here is a sample of it, for a stock called IBM. Go through a few more to get an idea. Use 'RIM' and search for results. (you have to fill that symbol in the search engine. Research In Motion, for starters)
The Globe and Mail : http://www.theglobeandmail.com/globe-investor/
* Open 127.90
* Previous Close 127.96
* High 128.20
* Low 127.29
* Bid 127.60 x0
* Ask 127.86 x0
* Volume 3,898,464
* 52-week High 134.25 01/19
* 52-week Low 99.50 07/08
* Beta 0.65
* Market Cap 166,220.04M
* EPS 10.28
* P/E 12.45
* Forward P/E 10.37
* PEG 1.08
* Annual Dividend 2.60
* Yield 2.00
3) There a few books on basics. It gives you just the bare basics which you can pick up from the libraries and get to know the terms that they use. Such as the ones from the above example. Look for 'Value Line' in the Library. They are no longer on the shelves.
Once you get to know and understand them, then you will look for these terms in each of the stocks that you consider purchasing. It is the start of good trading. When you start doing the analysis, it is called the Performance Analysis.
Move on gradually to the next level.
One thing that I must impress upon you, any amount of reading will only give you more knowledge in one such direction as observed and written in the book. Keep working with what you assimilate and see if you have an opportunity to apply or use in your daily routines.
After you complete your reading, get into a course called Charting. It could be simple bar charts or Candle Stick charting. That will enhance your knowledge to the next level. From there you see if you can go one more level up, to the next level. Which is understanding the technical side of it. No one has ever found out what it is and will they ever find everything that it conveys. and hope you do find what the others missed.
Here is another book for advanced studies. It is written by an author by name John J. Murphy and the title is "Technical Analysis of the Futures Markets." Don't go buying these books. Get them on loan from the library and expand your knowledge into trading at a pace that you can grow. But do take relevant notes as you read through them.
Will you be ready for Paper Trading after this. Sure you will. And guess how long it will take. A good life time or.....two ... or......
Freddie
How are dividends treated? From this website
http://www.taxtips.ca/taxrates/on.htm
the federal govt would tax me at 9.76% (on the 40K to 65K bracket).
1) Is it 9.76% on 50% (and they let you keep 50% tax free ... like with capital gains)
2) how does the Ontario government handle this?
Quote:
Originally posted by ftfl
Quote:
Originally posted by birentoronto
Thanks for the tip. I will print out the article and read it.
1) what do you mean by the below
>>There could be a few more extra dollars in savings that you will only get to know after plugging the dollar figures into it.
2) What is "paper trading" ? You mean to be a day trader? Do you think its a good idea?
_______________________________________________________
A Tax software maximizes the profits and also sees the other entries that you have made or will make in such questions that they pose in it.
To give you an example. it will ask if there are any other expenses associated with the sale and purchase?
You have the cost of a computer, which depreciates on an yearly basis, there might be Data feed costs, Fees for the Internet provider, accounting fees if you did use their services etc., All of these come into play when you compile your balance sheet.
2) 'Paper Trading' ( is a general term or) embraces a wide array of things. You have just started to look into the field of trading and as an encouragement, I said that you are set well on your way to do Paper Trading. Here you are doing the exploring without ever losing a cent. There are steps that one has to learn prior to actually deploying their financial resources.
In short, you are doing well and are progressing in the right direction. And in continuation, if can get hold of a Globe and Mail and see the stocks performance column, you will see a header with all of these terms in it. Get to know what it is and what they mean and how to use them and watch out for the figures in the future. Here is a sample of it, for a stock called IBM. Go through a few more to get an idea. Use 'RIM' and search for results. (you have to fill that symbol in the search engine. Research In Motion, for starters)
The Globe and Mail : http://www.theglobeandmail.com/globe-investor/
* Open 127.90
* Previous Close 127.96
* High 128.20
* Low 127.29
* Bid 127.60 x0
* Ask 127.86 x0
* Volume 3,898,464
* 52-week High 134.25 01/19
* 52-week Low 99.50 07/08
* Beta 0.65
* Market Cap 166,220.04M
* EPS 10.28
* P/E 12.45
* Forward P/E 10.37
* PEG 1.08
* Annual Dividend 2.60
* Yield 2.00
3) There a few books on basics. It gives you just the bare basics which you can pick up from the libraries and get to know the terms that they use. Such as the ones from the above example. Look for 'Value Line' in the Library. They are no longer on the shelves.
Once you get to know and understand them, then you will look for these terms in each of the stocks that you consider purchasing. It is the start of good trading. When you start doing the analysis, it is called the Performance Analysis.
Move on gradually to the next level.
One thing that I must impress upon you, any amount of reading will only give you more knowledge in one such direction as observed and written in the book. Keep working with what you assimilate and see if you have an opportunity to apply or use in your daily routines.
After you complete your reading, get into a course called Charting. It could be simple bar charts or Candle Stick charting. That will enhance your knowledge to the next level. From there you see if you can go one more level up, to the next level. Which is understanding the technical side of it. No one has ever found out what it is and will they ever find everything that it conveys. and hope you do find what the others missed.
Here is another book for advanced studies. It is written by an author by name John J. Murphy and the title is "Technical Analysis of the Futures Markets." Don't go buying these books. Get them on loan from the library and expand your knowledge into trading at a pace that you can grow. But do take relevant notes as you read through them.
Will you be ready for Paper Trading after this. Sure you will. And guess how long it will take. A good life time or.....two ... or......
Freddie
Dividends can be in two different classes. For this you must read the Canada Revenue Agency's classification first.
Some dividends are issued by the corporations after THEY PAY the TAXES on it. So, to provide you with a relief, they will give you a multiplying factor, say 25% above the receipts as an example and you gross that dividend and add to your income in the Appropriate schedule of the income tax return. (Most of it gets into line 121 of the tax return- 2009)
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/121/frgn-eng.html
The above two items 'Interest and Dividends' are lumped into the total as income and I see little relief in this, where as the Capital Gain gives you a good break. So, Trading stocks and winning some money is a beautiful thing. There are so many other items that could be looked into to obtain similar gains. That comes in later.
It will be nice to know how they treat the Dividends. So learn more about it and if you would like to post it here for others to see as a summary, you may do so. I will also delve a lot deeper into it and provide you with clarifications to the points you raised in # 1 ans # 2. in above post. (I did not copy it, as the tail seems to grow longer.)
Freddie.
A Few Things to Clarify:
The government may consider you a "trader" the benefit is that you can deduct other business expenses (since you are running a business of trading).
The disadvantage is that the gains will be taxed as business income not capital gains.
SUMMARY:
So, you may not be eligible for a tax free (50%) capital gain and also be taxed capital gain taxes (which are lower) - rather your profits will be treated as Income (and hence taxed more). 
Quote:
Originally posted by ftfl
Quote:
Originally posted by birentoronto
Thanks for the tip. I will print out the article and read it.
1) what do you mean by the below
>>There could be a few more extra dollars in savings that you will only get to know after plugging the dollar figures into it.
2) What is "paper trading" ? You mean to be a day trader? Do you think its a good idea?
_______________________________________________________
A Tax software maximizes the profits and also sees the other entries that you have made or will make in such questions that they pose in it.
To give you an example. it will ask if there are any other expenses associated with the sale and purchase?
You have the cost of a computer, which depreciates on an yearly basis, there might be Data feed costs, Fees for the Internet provider, accounting fees if you did use their services etc., All of these come into play when you compile your balance sheet.
2) 'Paper Trading' ( is a general term or) embraces a wide array of things. You have just started to look into the field of trading and as an encouragement, I said that you are set well on your way to do Paper Trading. Here you are doing the exploring without ever losing a cent. There are steps that one has to learn prior to actually deploying their financial resources.
In short, you are doing well and are progressing in the right direction. And in continuation, if can get hold of a Globe and Mail and see the stocks performance column, you will see a header with all of these terms in it. Get to know what it is and what they mean and how to use them and watch out for the figures in the future. Here is a sample of it, for a stock called IBM. Go through a few more to get an idea. Use 'RIM' and search for results. (you have to fill that symbol in the search engine. Research In Motion, for starters)
The Globe and Mail : http://www.theglobeandmail.com/globe-investor/
* Open 127.90
* Previous Close 127.96
* High 128.20
* Low 127.29
* Bid 127.60 x0
* Ask 127.86 x0
* Volume 3,898,464
* 52-week High 134.25 01/19
* 52-week Low 99.50 07/08
* Beta 0.65
* Market Cap 166,220.04M
* EPS 10.28
* P/E 12.45
* Forward P/E 10.37
* PEG 1.08
* Annual Dividend 2.60
* Yield 2.00
3) There a few books on basics. It gives you just the bare basics which you can pick up from the libraries and get to know the terms that they use. Such as the ones from the above example. Look for 'Value Line' in the Library. They are no longer on the shelves.
Once you get to know and understand them, then you will look for these terms in each of the stocks that you consider purchasing. It is the start of good trading. When you start doing the analysis, it is called the Performance Analysis.
Move on gradually to the next level.
One thing that I must impress upon you, any amount of reading will only give you more knowledge in one such direction as observed and written in the book. Keep working with what you assimilate and see if you have an opportunity to apply or use in your daily routines.
After you complete your reading, get into a course called Charting. It could be simple bar charts or Candle Stick charting. That will enhance your knowledge to the next level. From there you see if you can go one more level up, to the next level. Which is understanding the technical side of it. No one has ever found out what it is and will they ever find everything that it conveys. and hope you do find what the others missed.
Here is another book for advanced studies. It is written by an author by name John J. Murphy and the title is "Technical Analysis of the Futures Markets." Don't go buying these books. Get them on loan from the library and expand your knowledge into trading at a pace that you can grow. But do take relevant notes as you read through them.
Will you be ready for Paper Trading after this. Sure you will. And guess how long it will take. A good life time or.....two ... or......
Freddie
Hi,
Assuming I buy 100 shares of TD on 21/July (trade date). It gets settled on 26th July
Assuming the share prices increases on 22nd; am I able to sell it before it has been settled on 26th July ?
Thanks
