I applied for and have my new TFTA account and I am now just waiting for a password to start trading.
The process went smoothly except I tried faxing in my photo ID and it was too dark, I should have scanned and emailed it so I have about a two day delay that I caused.
I was able to use e-signatures to send everything in without having to mail paperwork, used a transfer from my margin trading account to initially fund the account and sent an EFT from my bank account to add some more capital to start with.
The only thing that I have not had cleared up for me is exactly how two trading accounts will work. I am sure that the trading platform handles multiple accounts, the manual states that it does but gives no details. I am sure it is just a tab selection to switch between the two so I am not really concerned about the functionality.
What I am not sure about is how to get the two onto the one platform...or how to switch the platform to TFTA exclusively. I just am trying not to incur any additional data fees or at least keep any potential data fees outside of the TFTA.
Having said that, my plan is to do no margin trading so I could just transfer the whole works. Being a discount broker I did not want to get too complicated with my setup so I will wait and see how it meshs...I have an email in to have this questions answered but I don't expect a quick answer. Right now they are up to their eyeballs in people inquiring about TFSA stuff. I see that their online help, which is usually very timely, is now running 20 people deep and 30 minutes or more behind the estimated handling time.
Don't be in a hurry if you are looking for answers from Questrade right now. Perhaps they underestimated the flurry of applications and questions that go with that.
The end run is that I expect that once I have my password and access to the TFTA I will have to call and have a CSR do some keypunching to get me set up the way that I want. I registered the account under the free platform package for now...I should have suspended my Pro package for January but I would have had to register the request in December and I would have lost my realtime feed to do any more testing... I need my feed.
All in all we shall see how this goes.
Jeff.
Questrade, My direct access discount broker.
Showing posts with label TFTA. Show all posts
Showing posts with label TFTA. Show all posts
Friday, January 9, 2009
Saturday, December 13, 2008
The overview, goals and targets
Perhaps I mentioned before that I like to do spreadsheets and I set up auto filling fields and various columns to... well ...let's just leave it that sometimes the more complicated the better. The first one that I set up to get an idea of the potential of my trading blew me away when I realized exactly what my initial, attainable and realistic small goal would produce. I still use it as a benchmark for all of my trials of trading strategies.
So instead of going on about those sheets I will cut the whole thing down to a few, or not so few, guidelines, goals and targets.
Rather than explain the premise behind, or the validity of each of these points, suffice it to say that I have proven the majority through a variety of trials both real and on paper but all with live data. Basically, no historical chart work. While I did some of that in the past I realized that it is not as valid as it seems as hindsight lifts the fog of the future just enough to make it not as uncertain as true real time testing. Everything that I have based my day trading plan on has been live.
Should anyone reading happen to find error, disagree or just want some further clarification let me know by commenting here or emailing.
Guidelines and rules:
I place $5,000 into a trading account and never add cash to it again
I use a tax free trading account to never have to pay taxes on the proceeds
I trade for 40 weeks of the year (three months of “buffer” in case I fall short of my targets)
I trade four days per week (160 days of a possible 260)
I trade only in the morning (my best time for alertness)
I trade a maximum of 6 trades per day (more have proven less profitable)
I trade one stock from a selection of only four (why make it complicated?)
Limit orders for entries, market orders for exits...so far
No margin use (starting in January)
Even lots of 100 shares traded
Trade size is capped at $45,000 per trade in year two, (I think I can use less and still meet the goals)
Performance:
1% per trading day on average. (I am currently at a 1.26% daily average return)
I am not trying for a quick large win here, just plugging away with a profitable strategy.
The time line:
January 2009, week one.
TFTA setup with Questrade, $5,000 deposited, may take a week or two to get going.
All gains return to the account for growth, even any over performance returns for the time being.
Week 26
Double my money the first time.
Week 40
Tripled my money (this could be as early as October)
January 2010
No additional contribution to the TFTA even though I could put $5K more in, at this point it will only make the difference of about a month or two before I can start drawing back out of the account.
Week 49
Quadrupled my money, I stop noting these marks at this point as I concentrate on cash flow.
Week 56
Returns are at $1000 per week
Week 72
Returns are $1800 per week
December 2010
Plan changes from growth to cash flow and investments
Account balance is $62,000
Investments for dividends are started, still within the TFTA umbrella
Income is $900 per week, investments are $900 per week
December 2011
Annual “wage” has been $36,000 tax free
Investment account deposits have been $36,000
Total account balance less any investment gains or dividends is $98,000
Should I remain working the balance would be $134,000, with $72,000 of that in investments for dividends
Alterations possible:
There are some circumstances that may have me trading more than the 40 weeks per year.
- should I fall short of my goals by the annual targets
- at the end of year two I could have the option of continuing to work a regular salary job or just concentrate on trading alone for my income and portfolio growth, I may trade more as a result
- should interest rates start to rise again I will probably step up mortgage and credit payments
- should my wife decide that she would like to settle out her current job and take on something that pays less but may be more enjoyable for her
- expenses like schooling for the kids kicks in after year three
All in all while this starts to sound like the ads that I see claiming huge returns for little effort, I must say that there has been lots of effort and time put into what looks like a rather simple plan. Countless hours of chart studying, research, trials and lots of emotional roller coaster rides to get to the point where I am now. My three year return on the original investment can be over 2000%. This has been a year in the making now. I have had some fun with this whole trading game but it is time for the games to end and the serious business of trading to begin.
I am looking forward to actually placing this plan into effect in the next few weeks. I consider this my biggest New Year's resolution ever, though I am not one to make resolutions as almost none ever get followed through, I think this will be an exception.
Jeff.
So instead of going on about those sheets I will cut the whole thing down to a few, or not so few, guidelines, goals and targets.
Rather than explain the premise behind, or the validity of each of these points, suffice it to say that I have proven the majority through a variety of trials both real and on paper but all with live data. Basically, no historical chart work. While I did some of that in the past I realized that it is not as valid as it seems as hindsight lifts the fog of the future just enough to make it not as uncertain as true real time testing. Everything that I have based my day trading plan on has been live.
Should anyone reading happen to find error, disagree or just want some further clarification let me know by commenting here or emailing.
Guidelines and rules:
I place $5,000 into a trading account and never add cash to it again
I use a tax free trading account to never have to pay taxes on the proceeds
I trade for 40 weeks of the year (three months of “buffer” in case I fall short of my targets)
I trade four days per week (160 days of a possible 260)
I trade only in the morning (my best time for alertness)
I trade a maximum of 6 trades per day (more have proven less profitable)
I trade one stock from a selection of only four (why make it complicated?)
Limit orders for entries, market orders for exits...so far
No margin use (starting in January)
Even lots of 100 shares traded
Trade size is capped at $45,000 per trade in year two, (I think I can use less and still meet the goals)
Performance:
1% per trading day on average. (I am currently at a 1.26% daily average return)
I am not trying for a quick large win here, just plugging away with a profitable strategy.
The time line:
January 2009, week one.
TFTA setup with Questrade, $5,000 deposited, may take a week or two to get going.
All gains return to the account for growth, even any over performance returns for the time being.
Week 26
Double my money the first time.
Week 40
Tripled my money (this could be as early as October)
January 2010
No additional contribution to the TFTA even though I could put $5K more in, at this point it will only make the difference of about a month or two before I can start drawing back out of the account.
Week 49
Quadrupled my money, I stop noting these marks at this point as I concentrate on cash flow.
Week 56
Returns are at $1000 per week
Week 72
Returns are $1800 per week
December 2010
Plan changes from growth to cash flow and investments
Account balance is $62,000
Investments for dividends are started, still within the TFTA umbrella
Income is $900 per week, investments are $900 per week
December 2011
Annual “wage” has been $36,000 tax free
Investment account deposits have been $36,000
Total account balance less any investment gains or dividends is $98,000
Should I remain working the balance would be $134,000, with $72,000 of that in investments for dividends
Alterations possible:
There are some circumstances that may have me trading more than the 40 weeks per year.
- should I fall short of my goals by the annual targets
- at the end of year two I could have the option of continuing to work a regular salary job or just concentrate on trading alone for my income and portfolio growth, I may trade more as a result
- should interest rates start to rise again I will probably step up mortgage and credit payments
- should my wife decide that she would like to settle out her current job and take on something that pays less but may be more enjoyable for her
- expenses like schooling for the kids kicks in after year three
All in all while this starts to sound like the ads that I see claiming huge returns for little effort, I must say that there has been lots of effort and time put into what looks like a rather simple plan. Countless hours of chart studying, research, trials and lots of emotional roller coaster rides to get to the point where I am now. My three year return on the original investment can be over 2000%. This has been a year in the making now. I have had some fun with this whole trading game but it is time for the games to end and the serious business of trading to begin.
I am looking forward to actually placing this plan into effect in the next few weeks. I consider this my biggest New Year's resolution ever, though I am not one to make resolutions as almost none ever get followed through, I think this will be an exception.
Jeff.
Monday, December 8, 2008
Questrade and the TFTA
I have given up differentiating the difference between real trading and fake or paper trading for the rest of this month here. My entries are the same either way and my exits are very close as well. I don't really want to have any tax implications for this year as I apply all my energy towards fine tuning my trading in preparation for the Tax Free Savings Account coming to Questrade next month. They are referring to it as the TFTA (Tax Free Trading Account) as they are offering all the same tools for trading as their regular account...with the exception of margin I expect.
I will be tracking them separately and combined still but I need to get my headspace around the whole trading game, all of the trades not just two subsets.
Here are the links for the general release and a Q&A about the government rules. Questrade is being pretty liberal with it but I am not familiar with any other offerings.
Pamphlet
The original link again
Jeff.
I will be tracking them separately and combined still but I need to get my headspace around the whole trading game, all of the trades not just two subsets.
Here are the links for the general release and a Q&A about the government rules. Questrade is being pretty liberal with it but I am not familiar with any other offerings.
Pamphlet
The original link again
Jeff.
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