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March 2011 results
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I am a retail trader and all of my trades involve TSX Venture Exchange companies.

My "Why I Trade Penny Stocks" posts are meant to highlight my strategy on trading stocks through a discount broker from my RSP and TFSA accounts.

An immediate benefit of trading under these types of accounts is not having to complete annual tax forms or paying annual taxes unless I am redeeming funds from my RSP. 

An even better benefit is not paying any taxes when redeeming funds from my TFSA.

Seeing that I can now hold US dollars and trade US stocks inside my RSP without having to bear the cost of exchange fees, I have since transferred $8,000.00 Canadian currency  to US currency inside my RSP.

Note: I can only trade stocks on the NYSE and Nasdaq --- no OTCBB or Pink sheet trades are allowed in my RSP account.

So no US penny stock trading.

My first US stock pick was SILU -
SPROTT RESOURCE LENDING CORP.


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The following performance chart is taken from my RBC Direct Investing Account. It tracks the progression of both my RSP and TFSA trading accounts.

It only goes back as far as Jan 09

I started trading penny stocks at the beginning of Nov 2008 with $13,567.48 in my RSP.

In January 2010, I redeemed $10,000 from my RSP trading account and started a TFSA trading account with it.

Starting in the month of February 2011 I began a "US Holdings sub-account (in US Dollars) in my RSP trading account. On Feb 17, I transferred $5,000 from the Canadian account to the US sub- account. I netted $4,996.00 US Dollars. (The bank still gets its pound of flesh in the initial exchange fee transfer even with an above par dollar). The good news is - RBC now lets me hold US Dollars in my RSP so I will no longer be charged exchange fees when I trade/flip stocks in the US-sub-account.

March 1st I transferred $1,800.00 giving me $1,819.28 US Dollars.
March 10 I transferred $1,200.00 giving me $1,221.37 US Dollars.

I want to bring my US balance to $10,000 total.

......

My current "Rate of Return" percentages are detailed in the chart below.

(I blotted out the account numbers.)

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Most of the stocks I trade are under 10 cents.

I did not redeem any cash in March other than transfer Canadian dollars to US dollars inside the RSP. Its time to build my equity again(I redeemed $15,000.00 in the last three months of 2010 from my RSP account.)


My gross sales for March 2011 were $ 6,087.65

Net = $ 5,218.90

(125 trades @ 6.95 = $868.75)




I'm still maintaining a 45% to 55% cash balance. This allows me to scoop up any of the regular stocks I trade on dips and place an immediate sell at 1/2 to 1 penny move. For a stock that trades at 10 cents that's a 5 to 10% profit.



Word of Caution - Penny stocks are extremely volatile so stick to a strategy - especially an exit one.



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I do make embarrassing mistakes. And sometimes I compound them.

Latest example is buying a stock called Scorpio.

My intention was to buy on March 4, 2011


SCORPIO MINING CORP - SPM:TSX

http://www.stockhouse.com/charts/BasicChart.aspx?sd=4/22/2010&ed=4/22/2011&ticker=T.SPM&t=0&w=384&h=280&sl=0&i=0

But I bought

SCORPIO GOLD CORP - SGN:TSX-V


http://www.stockhouse.com/charts/BasicChart.aspx?sd=4/22/2010&ed=4/22/2011&ticker=V.SGN&t=0&w=384&h=280&sl=0&i=0

I wanted to sell Scorpio Gold Corp but hit the buy button. Only later did I realize I bought the wrong stock and bought more instead of selling it.

Of course Scorpio Mining continued to go up and Scorpio Gold went down.

At least the winds have changed since and the reverse is now happening but I'm still out a few dollars.

I've mistaken buy and sell buttons before but this was the first time I bought the wrong stock and bought more instead of selling.

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I've included several screen shots of my March - 2011 results.


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Following is my monthly day-timer


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Daily Pre-trade Balance with Sales Breakdown for March 2011


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March's last RSP Balance

http://farm6.static.flickr.com/5223/5634287233_f0e6538faf_b.jpg

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March's last TFSA Balance


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RSP partial Activity Page - for March 2011

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TFSA partial Activity Page - for March 2011

http://farm6.static.flickr.com/5187/5634287715_f88fa46eb1_b.jpg



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Related Post:

Why I Trade Penny Stocks - Part 28

Why I Trade Penny Stocks - Part 30

Why I Trade Penny Stocks - Part 31

Penny lane

Thanks for checking out my page. Red Mars

My current short term combined account goal (RSP & TFSA) is $137,000.00




"To turn $100 into $110 is work. To turn $100 million into $110 million is inevitable."   Edgar Bronfman



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