I started to become financially savvy at 18 years old. (Born 1980) I learned the lesson of how hard it is to pay off things from credit, verses saving for them and I took an initiative to think about being smarter with finances. Today this interest is compounding and I am very proud of my achievements!
Tips, Tricks, Budget Essentials for A Fun Successful Approach On Your Budget Goals!
I learned much of my skill today by experience and just advancing my interest everywhere I could as I picked up odds & ends of information. Some quotes and expressions, even became a part of my learning as I plugged them into my investment strategy. This has made a huge impact on growing wealth. I have been through many economic prosperous events. I eventually developed what I would call an expertise gained by self study, adapting strategies and intuition to become very analytical, and fundamentally aware of opportunity in the markets.
As I learned about Warren Buffet, my skills greatly agreed with his core philosophy and analysis rules. Learning from practice has made me extremely knowledgeable and very intuitive on the markets. It is also why I developed my practice to be very cautionary and protective of wealth. I developed strategies to invest capital to experience huge gains very safely with very little risk. (Many people invest huge portion of capital and take on a huge amount of risk)
This is why I developed Ace Financial, not just to be a library of financial resources, but have a core value behind it to build wealth fundamentally and safely as a primary focus, while taking on higher risk with much more sinister caution, with a categorized step process. I developed Market Predator to illustrate my entire financial plan and strategy as a guide for my self. I realized it was an amazing product, which I could share with you!
For the most part investing is not rocket science, but it is a basic art to use the entire fundamental analysis spectrum to identify growth opportunities and this my friend is something you don't learn over night on your own. I have been learning since 2005 and watching the markets in a subliminal way since 1998, but really have been mastering this art in the last 5 years to where I feel like I can call my self an expert in my practice. (Others may be experts in other ways too, that I am not and I hope to expose them in Ace Financial for you to know about.)
Learning the risks of the stock market is where newbies can find out lessons the hard way, that are very costly. If you make a very big mistake and lose a lot of money from lack of experience, it may be what completely deters you from ever becoming good from experience, and learning why something happened and for what reasons. Ace Financial can help you understand and build the mind frame to grow and protect wealth from the beginning of your journeys, with a fundamental risk assesement approach.
It is hard to understand the manipulations of the stock market until you see how dilution, splits or reverse splits effect your investment and they all can affect your investment either for the better or the worse. Basic common sense on where you risk your capital will generally lead you in the right or wrong direction on this, but opportunity comes with risk and many unknowns associated with it. I have developed very stringent criteria requirements, “opportunities” must meet, before I ever take on risk. Along with my requirements, I also apply a very low risk to high potential capital management strategy.
I share this protective management strategy within Market Predator and it is very important and will help prevent severe losses and better position your portfolio for successful investing outcomes.
My Intuition For A High Yield Investing Strategy
The 2008 the market crashed, I moved my RRSP’s with an advisor in a big investment firm to support the economy and support my girlfriend who worked there. I am not typically trading RRSP’s and it can help look good for his clientele business portfolio.
While I was getting to know this advisor, I told him I would give him $5000 a year for 5 years and I want to invest in higher yield funds, like REIT’s or other good companies and do a DRIP with them for 25 years for my retirement. I figured if I got an average yield of 7%, it would be worth $125,000 without growth, give or take. The earning would be around $9000 a year if I wanted to look at it that way.
I gave him my stock picks. Chemtrade Logistics, Boston Pizza and Superior Propane as a start. He said our company doesn’t deal with these stocks, as they have their own stock list picks and stay away from anything that is higher yield.
I reinforced my goal and said why don’t you look at their fundamentals and see if you like them. So he tried to convince me to invest in one of their stock picks Encana at the time. It was somewhere about $35 a share. At this time I didn’t have opinions on commodities, but I do today, like Kevin O’leary. “You just have no idea the future of commodities and there are much better safer places to put your money.”
I allowed him to put $1000 into Encana, and I still wanted to invest in my picks. He ultimately wouldn’t do it and the only stock they had that was high yield was Yellow Pages, which was a very beating down company with bad financial management and a dark future with print media as everyone is moving to mobile. He kind of built a bridge under it and said if they cut their dividend, they may become fundamentally good and the stock could go up.
The stocks I chose doubled and tripped. Superior propane cut there dividend end in half and as I am writing this it has made a full recovery a long time ago and effectively accomplished the risk management, by a DRIP dollar cost averaging process. Yellow Pages, lost it’s shirt, restructured and has recovered over the longer term, but because they consolidated their shares, the value today most likely wouldn’t be worth much more than the original investment.
So I gained a value in the fact I picked my stocks based on the fundamentals, that they were a supply chain that had demand for their product and didn’t have troubles. Boston Pizza is a huge franchise chain and is in a sense recession resistant. Even if it loses value, it still has a purpose and a recovery viability as well they are diversified over the world.
As I seen in 2008, they were busy as ever and if they have to reduce margins to encourage business, that is the name of the game in bad economic times. But the key fact here is you can visit a Boston Pizza any where and see if it is doing good business. That is the smartest analysis you can take as a first step.
Chemtrade ships chemicals to the industrial world using rail as one of their big shipping partners. I see a future in this. Superior propane sells and ship propane, and I seen this as a long term business, even if the supply and demand may vary.
So that is the “essence” in the saying that investing is not rocket science, but more common sense and I just heard a reference quote today (Nov 22nd 2016) rephrased from the TV Show, On The Money, that Warren Buffet said, "investing is not difficult, but more common sense." It is nice to see these resemblances from wealthy successful investors, when you are taking a self investing approach and thinking the same.
My Friend Receiving A Penny Stock Picks From A Franchised Financial Firm
An acquaintance from work came to a discussion with me on finances, and mentioned a firm that gave him a hot penny stock tip. It was like 10 cents a share and I can’t even remember the name now, but at this time I developed more prudent skills and looked into this company and thought.. I really don’t like this… I though why would this firm pick this??? (Maybe he just didn’t like him for some reason lol.) There was nothing supporting any future at this time and everything I looked at pointed to bad fundamentals and huge risk. He said he is going to invest $10,000 into this company and a bunch of different penny stocks he was going to duplicate this idea.
I said I didn’t like this company at all and the reasons. I also said, invests your money into a well diversified portfolio first of good solid companies and take extremely small risks on penny stocks in the mean time. Wouldn’t you rather have $100,000 that is going to be there in a relatively safe manner give or take, earning a dividend and has potential for steady growth, verses potentially losing it all.
His response was I have lots of years to to get it right, and I make more money than most of my friends. I can afford to lose. I said that is your biggest mistake right there and is the mistake many newbies make. The greed can blind you from the reality!! That is just a bad mentality all together. Ultimately, that company disappeared, when I checked up on it a year later.
The Coal Boom In BC Canada
Around 2009 - 2010 I was observing CN investing in the Prince Rupert coal port expansion, locomotives and coal sets, along with Tumbler Ridge coal mines that were starting up production. It was talked about Jim Pattison buying houses in Prince Rupert and Tumbler Ridge. This BC billionaire would not be doing this for no reason.
I was watching the stock of Canadian Western Coal Corp and it fell to about 50 cents a share. I got word from a fellow conductor while we were trading off trains, they just signed a $300 a ton contract with China and I decided to invest $5000 into this company.
The share price grew to $16 a share a year later. I eventually noticed the cooling off of the share price and sold at $14. That is the biggest success story at this time for me, other than that, I have not yet experienced another big opportunity, until the Marijuana legalization trend, which I am taking on positions based on my more advanced investing strategy to achieve even bigger outcomes. The key here was paying attention to information and events and allowing that to be the best guide for my inner gut and instinct.
The Recession Of Canada in 2016
Mines were shutting down, oil was going lower, and the stock market was increasing in value. I was dumbfounded… I was holding out investing and selling my stocks that were in gains, and planning a dollar cost averaging strategy with others.
I was thinking this is economy is bad and I just can't understand any value to be gained, and it has to eventually put pressure on the stock market. When I was talking to my mortgage broker about this, she was agreeing with me. More jobs lost, the economy was showing more weakness and the stock market kept going up. What's going on???
I didn’t know when it was coming, but I started to say it many times to people, the stock market eventually is going have to reflect this recession. It did and this is where I realized I applied a Warren Buffet like mentality to the situation, that was unfolding. This type of uncertainty of not knowing when the crash is to come, could of been applied to the same scenario in the 2008 mortgage crises. You could of guessed it was coming and the only way to protect your self is to get out of the market with your winners and wait.
A Company Comparison Analysis of CN and CP. A Prediction To An Advisor's Investment Question
An Advisor I know and talk to once in a while about markets, asked me, "do you think CP is a good investment. I was thinking of putting my clients into it." At this time the stock rose from $50 a share to $250. This was caused from Hunter Harrison becoming CEO, after he was a CEO for CN Rail.
I invested into CP when hunter became CEO and sold my shares at $90 from $50. I thought I did well, but I should of held on and allowed the process to mature under his wing. Not a big mistake as I did well, I just sold off too early.
I just did a valuation comparison as I work for CN and I was curious about CP wondering the same question and if it was inflated to CN or not. As I assessed everything, I realized CP was valued more than CN and I knew that can't be sustainable. CN is a much bigger company with way more competitive advantages and their shares are already adjusted to the cuts and investments.
My prediction, I told this fellow, "I think CN is a much better option for growth, I would think CP will drop quite a bit, but I have no idea, all this growth is more inflationary based on the hype of Hunter Harrison. I have no idea if there will be more up side based on that. But I would put them into CN honestly."
I was right! CP Dropped to around $180 a share and CN has been steadily growing.
I was proud for that ability and instinct to say that to someone who manages clientele. I could have been very wrong in the sense CP may have growing to $300 a share, but that growth was against all rational valuations and therefore is not a reason to try and invest based on already inflated hype.
Alterra Power (AXY.TO) Analysis When They Consolidated and Started to Speak of a Dividend
I bought into some shares of this company as a penny stock when it was 30 cents. They were putting up revenue generating green energy projects and expanding this. I knew it would be a long term play as they were investing heavily into projects.
It took a few years of holding this company and they finally announced they were consolidating shares 10 for 1. The price at the time was 70 cents, which made the stock take on a price of $7 upon consolidation. (10 shares at 70 cents, became 1 share at $7.)
They were paying about a 3% dividend accordingly to the plan of 5 cents a share, and I compared other mature companies that paid a dividend in energy and evaluated Alterra Power based on a 5% - 6% yield, which would mean the price would go down to a low $5 range.
I was right. It dropped to that and a bit lower, because they also changed their dividend from what they said would be 5 cents to 1 cent, when they approved it. So that effected price to drop below $5.
However, the base line fundamentals are still intact and it is why I am still invested in it and want to look at the long term growth. I didn't actually sell the stock at $7 and just held it. It didn't really bother me if it dropped, as I want to add more to it. Looking at the fact I am becoming more knowledgeable at my intuitiveness to get my analysis right, I may become more likely at taking faith in these calls and play the game to sell and re-enter at better prices.
Looking Back At Opportunities I Missed
Before I really knew how to use economic analysis to my benefit, I missed out on some great opportunities and noted the events down for case study experience, while I was practicing on paper.
I seen opportunity after the the 9-11 event, but at that time I wasn't even buying stocks, just watching indices and markets. My intuition at that time a couple days after was, this would make a great time to buy into stocks that dropped from this fear. The calm took place and the markets jumped from the big sell off, back on course.
I started my real investing when the 2008 market crash started to recover, which I seen happen after Jan 2009. I think I started in March. However, I realized how someone who is in tune to current events and risks associated could of played the long side of the problem leading to the crash and shorted at the danger zone.
That is something that takes insight. But really, it is basic common sense, if you are paying attention to the current events and risks. I was still new at investing as I started in 2006 and practiced for a bit on paper, reaffirmed why understanding and developing a solid long term plan to prepare and benefit from such events is critical for success and comfort.
It was sad to hear from the bunk house cleaning lady telling me she sold her entire portfolio at a 50% loss because she couldn't stand to see it lose any more. It freaked her right out, like the sky was falling in chicken little.
This was truly saddening. It made me realize she had no understanding of the opportunity that was there and how a sound strategy would have allowed her to develop confidence. It would give you a sense of excitement about this time, if she understood history, strong economic backed dividend paying companies and had a sense that the world was truly not ending, but going through a recession and recovery. Great fundamental companies, became undervalued investment opportunities. I don't know for sure as I haven't researched it, but I am betting Warren Buffet, seen this as the best time ever to create wealth.
The 2008 crash was my first real lesson on a severe stock market recession. I learned why it happened as I had no idea what was happening to the US. That put me in tune to pay attention to the news more and how economic fundamentals are key to investment success. I gained value that money and news go hand in hand.
Today my strategy has become quite skillful, confident and advanced from early days to position money management very effectively based on a cross spectrum of fundamentals. I hope my story and development inspires and helps you gain some insight as to how you can too become a better self investor. I will tell right now, if you can pick up what I know and go forward in life advancing from there, I wish I could go back and have saved my self the trouble.
Trading High Leveraged High Risk (Day Trading Style)
I educated my self on day trading as it really became appealing how much money can be made on a little start up capital. I have been practicing since 2012 and developed core principles similar to how my portfolio strategy works. I am really proud of the book I wrote called Surviving The Game. It became a master piece identifying the must have skills to be successful and it was a master guide for my self, before Market Predator was a concept.
As it is for day trading, it is not my most favorite thing in the world. It is said that 90% of traders fail and I can ultimately appreciate this as I have violated some of the rules in the past and paid dearly for it, which is why the skills are written in experience. I really hammer on paying attention to the core skill set.
I know my self, I don’t like to try and trade every day on a technical analysis bases and my great success has come from economic events. Plus, it drives me nuts to look at dozens of charts every day. So I may only trade once a week if that. I know if I try to trade every day, the potential for success declines immensely.
My philosophy is if you can’t paper trade successfully or take $100 and grow that to become $1000, you should never trade risking your hard earned wealth. Also the value gained from learning with $100 and entertainment time is by far much more return for your money, than saying spending it at the casino. If you master the skill, then the pay off can truly be lucrative and reoccurring.
Signing Off With This Message
I hope you appreciate the time I took to write a quality credential history. Ace Financial is all about achieving success and helping to ensure it will become a very satisfying reality within a short accomplishable time frame. Success takes time, dedication and is rewarding with the work you put in.
I hope you appreciate the quality work I have prepared!
Founder of Ace Financial