One more trade

I added another short this morning to round me off to 6 active trades, 4 long and two short.

Long sectors are Transport, Industrial goods, Healthcare and Basic Materials (Oil and gas drilling services)
Short are Financial (Insurance) and Healthcare.

These are mostly accidental except for the healthcare short.

I chose to get a healthcare short in to offset my long in the same sector as the long position is wallowing now, sort of a hedge trade I suppose. Even though they are in the same sector that does not immediately imply that they will fallow that index close enough to have to worry much about them moving in lock-step.

So far my new portfolio is in the green overall, 4 up and two down. or 5 up and 1 down, depending on the moves of a close one.

One of my trades has dropped back to a buy level so I consider adding to it as it is a 25 share position...but I decide that I will let it play out first. Afterall, this is a newer trading method so I might just be adding to a loss rather than averaging down.

I made the two short trades in my margin account, the only account where I can short. The balance are in my RRSP account which means that the profits are left to grow.

My next plan is to target the trade sizing ( absolute dollar value) in such a way as to put the smaller priced stock trades into my TFSA account and leave the RRSP for the larger priced stocks. This will allow me to grow my TFSA (Tax Free Saving Account) to the point where it can be skimmed tax free on a profit percentage basis to start covering some of my other out of pocket trading costs. Ultimately that is where I would like most of my trading to end up as all of the profits are tax free completely. In January I will get to add another $5,000 tot he capital base to give me some more trading room...unless I find that I can grow it enough that I don't need it...that would be nice.

Jeff.