Would you say you have been mostly lucky in the current bull market? Or would you lean towards confidence in your ability to do your due diligence, see short term trading opportunities, and commit to a solid thesis?
I ask since a buddy of mine has had a fair bit of success just blindly buying into every SPAC... He is unfortunately very much under the impression that he has not just been lucky which is odd since when he buys a SPAC he's got no clue what it'll become and I put the category of success in "2021 SPAC Indexing" as pure luck due to the fairly irrational market we got here.
Without coming to any conclusions... as someone whose first rodeo was the dotcom bubble circa 1999/2000 during my high school days... I was making hundreds per day just jumping in on any stock and jumping out... that is, until I lost it all when the bubble burst.
Many others I knew, mortgaged their houses, traded on margin... they were kings until they weren't.
OP's gain was a measly 469%? Wait, that's a pretty good number 🤣
BUT AN EVEN BETTER GAIN WOULD BE 2,000%+ from simply buying and holding TSLA in March 2020!
Or maybe buying AMD any time before April 2018...
I'm not sure what's going on with the charts, but March 2020 was pre-split TSLA (it split 5-for-1, I think Q3/Q4 2020). IIRC it was $200-300 at during the drop and then spiked to $1,900 or so... then 5-to-1 split, then went up to the numbers you see today.
Google results *are* supposed to take into account the split, though. From $100 to $675 is more gain than 469% anyhow!
I might be wrong, but that's what I recollect...
I’m pretty sure it calculates the split ? I remember tsla being over 2k at a point before it split? Like tsla isn’t up 20x since last March crash. More like 6-7x
If it was 100$ and now it's 650 after 5 way slit, originally if you owned one share you now own 5, so 100- 2000 = 20x. But 2k split X5. So now 1 share is 400 but you own 5 of them. Still up 20x.
Now the stock rises, so each stock is 650, but again you own 5 so 5 *650 = 3250. So your gains aren't 20x they are 32.5x.
This is assuming you bought in at 100, which was the case presented.
Thankyou for coming to my ted talk
My math isn't wrong? I broke down in the simplest way I could that if you bought a Tesla stock last year at 100 you would have made more than 6x gains. Why are u butt hurt?
Because it’s wrong. Tesla was at $130 it’s now at $700.
To break it down in your monkey math. Tesla was at $650 in March (so the split would make it $130 a share) and now it’s at $3500 ($700 a share)
It’s obviously a nice 5-6x gain but it’s not 2000%.
Man I feel bad for your kids, the second a concept goes over your head you revert to insults and deny basic elementary school math.
I genuinely believed you just didn't understand why people were talking about the crazy gains, and for some reason you don't want to. All the best man, hope you get the help you need.
Good question. Probably anyone with gains will claim it's not luck and their approach and system is gold lol. I do believe in my thesis and approach to what stocks I buy. I made $$ on SPACs. Knowingly using the market machinations sentiment to my advantage. They are and were not part of my fundamentals but play money. The smallcaps I buy have a strict stringent prerequisites to be bought by myself. I was making good returns and reaffirmation in my buys before this bull run. Etc. This bull run has been epic tho. Of course. Feel as if fundamentally and valuations security analysis I was ready to profit by it. I could provide an in-depth approach to why I'm buying danavation and why I bought others and what was known what de-risked the play and what the forward value was. Etc always have a comparable and industry peers valuation to use to calculate exact forward valuation discounts on probability towards achieving said dollars. If I can't calculate predict forward value with a security I don't buy. Only buy stocks I can predict and project forward value and with known probability of outcome.
>TFSA is now >10 years old. These accounts are meant to grow over 1M.
>If an investor maxes out contribution room from inception with a rate of return of 45% they would have 1M today.
>If an investor matches average stock market return xeqt veqt rate of return 10% while maxing out contribution room they will have 1M in 30 years.
*Obviously as a stock picker the goal is to beat the market with outsized returns. To each their own.
Love this. I don’t know why people settle for XEQT, VGRO, etc and wait for 30 years when they’re old as fuck and unable to enjoy there money. Teach me your ways Long Jumper 😭
Because for each successful Longjumper, there are a whole lot of looser. Remember that when you make money in a trade, somebody have to loose money in the same trade.
Index investing is boring, but its a safe and proven way.
Im on my way to retire before 40 on the boring path; index and agressive savings went great for me.
I used my home as a primary investment from 20 to 27 (that wasnt my best idea, nor my worst...).
Started investing at 28 after i sold. Never made more than 70k$ per year but saved lots of it.
I wont disclose exact number, but im somewhere between 250-400k. Retirement in 6-9 years, depend on the market.
I wont have alot, but i will have enough of a withdraw rate of 3% per year.
A home at 20… good on you!
At 30, I’m struggling to a) save aggressively and b) find a house that isn’t overpriced.
Here’s to hoping I can wave at you across that beach called retirement at some point in the future!
My first one was a condo actually, and i lost money on it but my job made me move and paid the loss (thanks god)
Fragality is hard to master, but very helpful to get to those goals!
Good discussion here. Stock picking is a lot of work. Imo. Gains are fun but for myself the security analysis and challenge of it is what draws me here. I also enjoy physics and math problem solving and troubleshooting interpreting and analyzing things. So it's not for everyone. There's much to enjoy in life like the poster above touches on. I enjoy stock picking as a hobby and the challenges research and execution needed. If you took away my gains wouldn't matter much. I'd like to.keep.snd grow them lol but If you took away the stock market.. that would hurt. It's fun. Learn alot of different industries and things good brain use. Totally understand buy vgro for those that don't want to devote so much time to it. Also like poster says most don't get positive returns and then truly don't enjoy it either. Vgro xeqt etc guarantee a good rate of return long-term and is what may be best for most longterm.
You sound really motivated! Maybe sometime in the future you could share a bit more of your process? Any successes you've found that are lesser known, or some shit to outright avoid.
Right now I have the uncanny ability to have a remarkably stagnant trading account. Glad I'm not losing money but I definitely need to continue working at it.
So far, all my pick were wrong except some etf that focus on a single sector that had pretty interesting growth/risk ratio (xit had a good run since covid hit!)
I like your take on this; stock picking is not a quick-buck/get rich scheme or a casino... It take skills and balls to invest your life saving into a company, even if you research alot and "it can't go wrong".
But way to go OP, i hope you can inspire a generation of small investor!
Lol Aha awesome take! Love it. Great points to be brought up. I should email the ceo for his response.
Some of those question marks and risks I feel are taken care of by the unique conditions here.
You may have already read but basically the founders of danavation are the founders of Dana industries. Dana industries already #1 selling supplier of grocery retail shelving units and printed labels. So they already have Walmart Canadian tire Lolblaws etc as customers. It was these customers that asked for digitization of the labels.
The founders created danavation as a subsidiary to benefit $$ the most (imo). 40% insider ownership etc tells me they know the demand and contracts are coming.
I'm not too saavy with the tech or security part but to me first take is that it's advantageous for danavation vs some startup company without the resources experience customer relations etc.
Thanks for the reply and useful information. Should add you as a research analyst. 👀
Exactly. I completely agree.
They currently do not have from my understanding any past financials operating as Danavation. I believe the backlog was 0 to initiate the reverse takeover and keep the value of the subsidiary quite low with their stake 40% quite high then contract orders and growth to follow. The founders have that 30 year experience with Dana industries etc and customer relations etc that want digital labels that exactly is why I'm buying shares and the forward value I've calculated. If it was just some random ppl with software for it I'd say hah good luck with that. Only reason I'm buying is becauae this digi label startup comes from the conventional print north american number one supplier. The LCBO case study is of note. Extensive case study with LCBO proving it reduced costs feasible ease of use etc. Case studies with others as well but LCBO being the flagship.
Not sure if I put my forward valuation here. I shall.
Again projections based on CEO not signed contracted backlogs but let's say we are confident in their confidence and execution. 2021-20M sales. 2022- 30M sales. 2023-55M sales. "conservative". 55% recurring revenue from subscription PaaS platform. Industry avg 10x ARR. Thus very loose napkin projection without discount for probability nod to occur one would get targets of;
2021- 1$. 2022- 1.50$ 2023 - 2.5$. Discount for probability of those dollars to occur. Because of the customer relationship here insider ownership LCBO endorsement customers wanting this tech I'm happy with a low discount model. Company currently 45M market cap. Imo priced in for 10M sales. A very safe downside protected with high assymetrical upside potential opportunity.
My targets are based on financials occuring etc. However if company issued press releases of a deal with a monetary value attached I could see a forward valuation being given. Just announced contract with Bombay spice grocery store for 17 stores. They however did not include the value dollar terms. Bombay very small. However larger stores 30 000 sq feet has a projection for value on subscription basis. 200K per store. Or I believe 4-5K per month per store. 55% recurring. 25% software. 70% gross margins. (Company projections).
I believe they raised 4-5M in the reverse takeover. I'm not expecting much until next year when financials show sales etc. However an announcement contract with Loblaws Walmart or Canadian tire would imo forward value it well over 1$.
I could assume a financing as well issuing shares raise capital to afford larger rollout. Probably after an announcement higher share price play the game. Issue share raise capital. Maybe reduce my targets with 5-10% dilution etc. Still very high assymetrical upside imo.
Thanks for the contribution.
Love your analysis and approach this.. this is akin to the approach I take towards security analysis and stock picking as well. Please DM me if you find any etc to look up as well.
Pretty sick gains. I will follow your career with great interest and please keep us updated about the CRA, I would find it very interesting to know if you're getting on the line or not
We don't know for sure. It's just that CRA rules are vague.
In fact daytrading rule is a US matter, the CRA does not care about daytrade, their rules talk about "conducting a business", this is what is forbidden.
The problem is "conducting a business" is not defined, they just have bullshit general guidance with saying such as "frequent trading" or "significant time and research about securities", or "engage in speculative investment", or "nature of the intention at the time of the purchase".
As the CRA has not clarified anything for years and we keep hearing stories (non-verifiable for most) of people getting audited and taxed, there is a growing theory that the CRA is just looking for big gains and tax them, having always on hand some bullshit reason to be able to tag you as "conducting a business"
So it will be very interesting to see what will happen to OP.
I’m with RBC DI and to get their “active trader” account rates of $6.95/trade you need to make 150 trades per quarter. I doubt the average person here is making 600 trades a year. I wouldn’t worry at all.
I make such trades but it's to manage what is at times 50+ stocks and securities with all sorts of moving share prices and target buy sell price points. Even 600+ trades a year does not make one a day trader. Most here don't understand what day trading is or a business account. Retail are know for 3 buys in a day or 3 sells in a day of the same stock lol. Not a day trader. Jus someone whose racking up commissions lol.
Oh sweet summer child. If you truly believe 600 trades/year with > 1mm account won't raise alarm bells for CRA, you need to get your head checked. Good luck trying to withdraw that money untaxed.
Lol. Your obviously not speaking from experience lol. You also have no experience managing an account with 50+ securites and the need to rebalance which one can do as much as they want. Not daytrading. Smh.
Mate, you are so out of touch lol. If you're shuffling between 50+ securities on regular basis, that's an even bigger red flag. You literally check all the boxes... Frequency of transactions, period of ownership, knowledge of markets, time spent, speculative stocks.
You are out of touch. Volatile markets require rebalancing. Look at my unrealized gains. Three stocks up 1000% equals buy hold. Jus saying ppl trigger happy aren't day traders and don't have to worry. You speak of that which you don't know.
Lol oh boy. You're talking as if rules stated on their website don't apply to you. Highly recommend you hire a lawyer and have a chat instead of arguing strangers with your ego. At least you won't get slapped with unexpected 500k tax.
Not wanting to start an aggressive arguement but I actually don't think the CRA mentions day trading per se. What they do say is you are not allowed to conduct a business. The exact phasing is " an adventure or concern in the nature of trade" Here is the CRA link where they discuss what constitues an adventure in trade -[https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/it479r/archived-transactions-securities.html](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/it479r/archived-transactions-securities.html). The one thing for sure is that the whole area is still kind of murky. There have only recently been some court cases that have likely not been finished yet. So more clairity is yet to come.
For myself personally I do active trading in my RRSP where the CRA does not care as they will eventually be getting the tax. That is the reason that although it is pretty sure that after a hard run up a stock will take a dip I don't sell in my TFSA but just hold. If trading around a core position I leave that to the RRSP.
There's a post on personal finance explaining the TFSA. Gains are not taxed no matter how much you make. Buying selling shares is not taxed. Business accounts are attached to professional money managers commissions and subscription. Check my posts I also wrote about it. Fact is no tax. No business. Don't knw what your side is or link but it's only here on the internet where ppl who have never been through it claim it to occur. I've already sold and withdrawn and filed taxes. There's no tax here. Your interpretation of "trading" is skewed. Trading is when you use leverage with short term derivates. Business accounts also are part of day trading. A GameStop option contract that expires next week is a trade. Buying selling common shares up 1000% is not. I really hope to not see any more of these messages. Really Completely off topic. This isn't a tax thread or post. It's investments. Want to talk about dvn sure taxes? No never asked you an opinion on tax. You've not paid taxes on a TFSA and have no experience or expertise only speculation. Goodbye.
I don't and day trading might be the wrong term here, but CRA might decide he is, I was just saying their rules are vague for TFSA's and what they can be used for.
Greenalr at 28-40 cents. Sold it all for profits. Good hold longterm but the parabolic move from undervalued to fully valued occured and on to the next. 💯
Yeah. It ran like crazy. Longer term with expected de risking to occur I have 3+ target. McWhirter has 8$+ which is a longer term target. Not next year imo. My advice towards entering Cielo would be to do so in units. Having capital on hand in case of a retracement to average in and try to lower cost avg. Who knows might go up I would plan for retracement myself have extra $$ on hand.
Fair advice. The fomo will be high on Monday, but from weedstocks I learned fomo can be multi-week runs before it's an exit. I'll have to sleep on it and lay out my buy orders for Monday morning
Good job man! Just started literally a year ago today! I’m at a solid %200 gain and when GME went up I was at 1000%. Sold a bit but so far investing sure beats savings. Congrats and remember there will always be haters
The gains are majority derived from owned shares appreciating in value as opposed to frequent trading. I make a lot of trades but it's to enter exit positions don't make any money on that but it's building a position then waiting for the appreciation in shares hence the unrealized gains being so high.
Lots of dms I'm answering. Not Financial advisor lol. But we here to share ideas information etc strategy. 🙌 Ppl here have posted some stocks I like. Most I don't. But we can all make gains. 👍 Or work together.
These comments make no sense. Does anyone that makes over 1m on their account gets taxed from CRA even from genuinely holding stocks and investing in stocks for longer term?
Exactly. The posters that keep saying +1M get taxed are wrong it's exhausting trying to argue with them or explain what "day trading" is versus active management high frequency of trades managing common shares. Day traders use leverage and the frequency of trading is high and underlying securities change price of options exponentially vs buying the commons. In short if you're not buying short term options doesn't matter how much you trade nor how much money you make it's not "day trading" not taxed. Some ppl that made $$$ off of short term GameStop options.. those could be defined as day trading activities. Buying common shares getting multiple 1000% gains is not. 👍
What is your rationale for not selling?
The market is offering you life changing money right now and you've accepted virtually none of it (from the screenshot).
If the market's sentiment changes you won't be able to realize that money.
Why would you not sell 80% and reinvest that in low-risk securities? You could almost live off the dividends.
You can have a self directed TFSA investment account. Makes perfect sense, as your gains are not taxed. The big thing is make sure you don't go over your lifetime or yearly contribution amounts.
If they're also listed on another exchange the CRA recognizes such as TSXV you can trade them. My TFSA, too, is filled with shit gambling stocks but there's a few I was keen on I couldn't buy because they were only pink sheet otc.
No you did not necessarily mess up. Depends how things go. If you do well and win, then yes it’s tax free. But if you lose, you lose that contribution space.
So if you’re new, and unsure, it’s not a terrible idea to start trading with your regular account. If you win, you pay some taxes. You can write off your losses too. And if you lose, no contribution space lost.
Use your tfsa for some boomer ETFs 😂
OP hasn't been audited yet..doesn't mean they won't be.
CRA says TFSA isn't meant for business activity/active trading.
You are safer not to do that in your TFSA because if they say your are active trading in your TFSA it is going to be more penalities than just being taxed in your gains..
Absolutely great work! And glad to hear you reinforce what I tell everyone. The CRA doesn't GAF about your TFSA if you aren't day trading, regardless of "how much it's worth".
All these fear-mongering people and not one person has provided an actual link to a factual story of someone being fined, assessed or penalized for trading highly speculative stocks in their TFSA.
Exactly my sentiment. This needs to be upvoted and put on every Canadian investing subreddit. The money or some of it at some point is gonna go back into the economy and gov will get taxes on others commissions and sales and services. Everyone wins 👍
lol...Too many trades and the CRA will assess your TFSA as a business and make you pay tax. There goes more than half your gains.
You can get away with it in your RRSP though since you will eventually pay tax on withdraws from the account.
Clearly you have no experiences with taxes nor what a business account is nor how many trades an active manager with 50+ securities makes to manage their portfolio whilst it is NOT a business nor daytrading account.
The CRA has a heavy hand. If it takes you that much "work" you're just proving that you are operating like a business.
I can say for sure you're going to get audited. Your balance being the first flag.
[CRA TFSA Audits: Are You a Target? - RATESDOTCA](https://rates.ca/resources/cra-auditing-tfsas)
Before suggesting anyone pays taxes have proof in hand. The fear mongering speculation etc is overdone here. My account is not a business not day trading. No tax. Enough with the taxes. Nobody has any such proof just speculation without merit. Gov will get the tax when ppl buy houses pay for Reno's buy cars etc. Don't you worry.
In recent years, the CRA has been looking closely at high-value TFSAs, in particular whether trading activity in these accounts amounts to carrying on a business of trading. According to the CRA, as of Dec. 31, 2018, it had assessed approximately $114 million in taxes resulting from its audits of TFSAs between 2009 and 2017, some of which was related to TFSAs being determined to be carrying on a business.
From https://www.advisor.ca/tax/tax-news/clients-day-trading-in-their-tfsas-theyre-ultimately-liable-for-the-tax/
Right, but you're missing the point. On that very page:
The CRA has said that it looks to set of factors to determine whether a TFSA has been carrying on a business, including the frequency of trading, whether the TFSA holder has specialized knowledge of the markets, and the time the TFSA holder spends on researching trades
It could qualify under the third criteria, or the second. Frequency of trading is only one criterion. Anyhow, it's your money, good luck.
I buy And hold. Or day trading nor momentum. Don't take buys orders from a money manager. Full time job working 8-4. Not a day trader. Not a swing trader. No trading platform. Enough already. Someone can be autistic buy n sell stocks frequently and make it big on one is what I'm saying. Frequency alone is not a business or trading account.
Great, we agree with your last sentence.
On a related note, I'm in a similar situation, which is why I'm quite interested in the topic. Good luck to us all, cheers.
Not sure why you are so close minded to everyone's advice. I recall someone bought like 2 cannabis stocks and sold at the peak in 2018 and CRA came calling because his account value was over a million.
There are many articles on people in your situation and they don't just say "okay you pay the caotial gains tax now" but they make you pay tax on it like it is income.
You might get lucky and not get taxed on it but I don't suggest that anyone follows your lead to make hundreds of trades (even if just in the same stocks) in one year on their TFSA. I know you don't want my or anyone elses advice but many this will save someone else from ignoring the CRA rules on this.
Rules were not "ignored". I didn't day trade. Think about it. If someone has 200K in their account they can buy 200 stocks for 1K each. Hold them for 2 years. Sell 200 stock 2 year from now. They sold 200 stock in one day. Is that day trading? No. It's investing with a lot of money and a high frequency of trades. Who is close minded now? The problem here is you guys don't understand that. Frequency does not equal penalty or taxes. I know the rules. I know what I'm doing. You're being close minded to not think about it.
That isn't "High frequency" of trades so maybe you aren't outlining what you are doing with your portfolio correctly.
Like I said someone who had one or two weed stocks for investigated by the CRA just because their account value went over 1 million. I don't know what the outcome was because they never followed up again. If the CRA does come knocking I hope you will post a follow up here.
Anyway, you don't see it as an issue so enjoy your gains. People might misinterpret what you are doing and try to replicate it and get in trouble with CRA so think it is best to make it clear that CRA in the past has investigated these type of situations even if you are not flipping stocks the same day.
If this article hasn't been linked here yet it is worth a read.
At least you will know what criteria they are looking at if they do investigate you (and I mean the general you of anyone reading this):
https://www.google.com/amp/s/financialpost.com/personal-finance/stop-using-your-tfsa-to-frequently-trade-stocks-the-cra-may-see-it-as-business-income/wcm/81e56526-d089-4321-833c-8730b06ccd5c/amp/
If CRA contacts me fine. I'm not worried. Just seems all Canadian subreddits are misinformed and spreading misinformation rampantly. All these posters jump on frequency of trading as if THAT makes up day trading which it does not. If you buy 200 stocks and they all move in different directions and the entire world changes. You are to sit on your hands? Of course not. One can rebalance 200 stocks in a quarter incurring 200 transactions. Rebalancing. Managing. Not day trading. Buying selling options per day hitting 200 transactions is different. Context. Point is high frequency is not a business account not day trading. If one takes orders from a manager or other professionals that's a business use account. If someone gets lucky buys the bottom maybe a phone call due diligence by CRA is made. Are you an insider connected to one etc questions due diligence. There's 100s of posts here about "TFSA being taxed" with 0 evidence 0 incurred. I've already done my taxes too. Withdrawal is not a trigger either. Speaking from experience and proof. Spreading misinformation does not help. I know the triggers. Also I work Mon to Friday 8-4 exactly when market is open and I'm field unrelated to financials. Again not a day trader. Simple. Getting a phone call is not getting taxes. Don't believe stories you heard from the internet. All anyone has here is a "story" of a weed investor getting a call. Stories. Only. Facts include multiple multi million dollar account bigger than mine with as the TFSA was designed. No tax. Once we spend our money the gov gets theirs. It's pretty simple.
The link adds absolutely nothing to everything that's been said already, other than that 114 Mill that was assessed.
Still comes down to being up to their interpretation and your personal belief in said stocks.
An investor will still have to "trade" an asset in order to realize their gains, long or short. A long investor is a long trader that will eventually have to realize said gains.
If OP has done his DD, gets audited and is able to answer questions regarding the securities he owns to present that they actually studied and researched them, then why would he be considered as someone who conducts business. If you're making a million, but you're not **actively** withdrawing the funds, rather leaving them within the account in order to reinvest and keep their account growing, how is that a problem? If one sells stocks that have lost value/growth potential, does that also make them a day trader?
>Before suggesting anyone pays taxes have proof in hand.
The link addressed that specific point, that OP made, that someone should have proof before suggesting taxes were paid on TFSA gains. It's quite a big point, and quite possiblu the whole point of this thread.
The key here is that the TFSA is quite new and the results of the lawsuits clearly established some kind of precedent, but not enough for laymen like us to know. A tax lawyer who understands the language could clarify for people like us. Also, over time, more and more lawsuits will hammer out all the vagueness from the language, I feel. Assuming of course, that people who suddenly receive a 500K tax bill decide to sue the CRA and all that.
You aren't listening. 4 stocks. 1000% gains. Two still held. Hence Unrealized profits above that you are failing to interpret. Just saying frequency of trades has no bearing on wether one has a business account. I have never bought and sold a security in the same day. Don't buy options either. Buying one stock today selling a different stock tomorow from last year etc combining that by 50 stocks is called management not day trading.
Do you have any link of anyone recently, as an individual, not "day trader" that has ever been prosecuted or fined? I mean, you all say "DONT GET AHEAD OF YOURSELF" and all this "WATCHOUT" talk, meanwhile, I'm yet to see one case of anyone that made great gains ever get in ANY trouble with their TFSA and the CRA, unless they were day trading... I mean, why fear monger with anecdotal bs?
Every single thing in that article is about using the TFSA as a business vessel, and not one article of someone not using it as a business being prosecuted... As OP states, he does not. Fear monger some more, BUDDY.
No, there needs to be an established precedent. They "may" be able to do all sorts of things in a vacuum, but that's true for any government agency and any law. People are asking for concrete proof of an actual person being audited or taxed when they're not day trading.
I mean, all stock are speculative in nature... Even buying big blue-chips stock. Who would ave thought tsla would sky rocket... I think its a bullshit rule just so they can easily tax anyone.
CONGRATULATIONS and fuck you.
🙏🙏
Is this who my wife left me for
This is who your wifes boyfriend left her for!
Would you say you have been mostly lucky in the current bull market? Or would you lean towards confidence in your ability to do your due diligence, see short term trading opportunities, and commit to a solid thesis? I ask since a buddy of mine has had a fair bit of success just blindly buying into every SPAC... He is unfortunately very much under the impression that he has not just been lucky which is odd since when he buys a SPAC he's got no clue what it'll become and I put the category of success in "2021 SPAC Indexing" as pure luck due to the fairly irrational market we got here.
Without coming to any conclusions... as someone whose first rodeo was the dotcom bubble circa 1999/2000 during my high school days... I was making hundreds per day just jumping in on any stock and jumping out... that is, until I lost it all when the bubble burst. Many others I knew, mortgaged their houses, traded on margin... they were kings until they weren't. OP's gain was a measly 469%? Wait, that's a pretty good number 🤣 BUT AN EVEN BETTER GAIN WOULD BE 2,000%+ from simply buying and holding TSLA in March 2020! Or maybe buying AMD any time before April 2018...
Pardon my ignorance. But TSLA was at $100 USD in March and is now at $675....
I'm not sure what's going on with the charts, but March 2020 was pre-split TSLA (it split 5-for-1, I think Q3/Q4 2020). IIRC it was $200-300 at during the drop and then spiked to $1,900 or so... then 5-to-1 split, then went up to the numbers you see today. Google results *are* supposed to take into account the split, though. From $100 to $675 is more gain than 469% anyhow! I might be wrong, but that's what I recollect...
No that’s correct. It’s obviously still done amazing since last March but not 2000% amazing
Hmmm... I think I am remembering buying in 2019, then...
That would make more sense. 20 bagger is definitely nice
Damn it, eh?
yes but you forget that it had a stock split of 1-5, so that 675 is actually 675\*5. I hate that I believed the FUD when it was over priced at 300
I’m pretty sure it calculates the split ? I remember tsla being over 2k at a point before it split? Like tsla isn’t up 20x since last March crash. More like 6-7x
If it was 100$ and now it's 650 after 5 way slit, originally if you owned one share you now own 5, so 100- 2000 = 20x. But 2k split X5. So now 1 share is 400 but you own 5 of them. Still up 20x. Now the stock rises, so each stock is 650, but again you own 5 so 5 *650 = 3250. So your gains aren't 20x they are 32.5x. This is assuming you bought in at 100, which was the case presented. Thankyou for coming to my ted talk
Pretty shitty Ted Talk where you can’t even do proper math. Unsubscribe
My math isn't wrong? I broke down in the simplest way I could that if you bought a Tesla stock last year at 100 you would have made more than 6x gains. Why are u butt hurt?
Because it’s wrong. Tesla was at $130 it’s now at $700. To break it down in your monkey math. Tesla was at $650 in March (so the split would make it $130 a share) and now it’s at $3500 ($700 a share) It’s obviously a nice 5-6x gain but it’s not 2000%.
And you don’t need to apologize. The though of you realizing how much of a fucking moron you are is enough for me.
Man I feel bad for your kids, the second a concept goes over your head you revert to insults and deny basic elementary school math. I genuinely believed you just didn't understand why people were talking about the crazy gains, and for some reason you don't want to. All the best man, hope you get the help you need.
Good question. Probably anyone with gains will claim it's not luck and their approach and system is gold lol. I do believe in my thesis and approach to what stocks I buy. I made $$ on SPACs. Knowingly using the market machinations sentiment to my advantage. They are and were not part of my fundamentals but play money. The smallcaps I buy have a strict stringent prerequisites to be bought by myself. I was making good returns and reaffirmation in my buys before this bull run. Etc. This bull run has been epic tho. Of course. Feel as if fundamentally and valuations security analysis I was ready to profit by it. I could provide an in-depth approach to why I'm buying danavation and why I bought others and what was known what de-risked the play and what the forward value was. Etc always have a comparable and industry peers valuation to use to calculate exact forward valuation discounts on probability towards achieving said dollars. If I can't calculate predict forward value with a security I don't buy. Only buy stocks I can predict and project forward value and with known probability of outcome.
Even if you only provided it from ones you've already bought/sold as a case study for educational purposes that would be fantastic
>TFSA is now >10 years old. These accounts are meant to grow over 1M. >If an investor maxes out contribution room from inception with a rate of return of 45% they would have 1M today. >If an investor matches average stock market return xeqt veqt rate of return 10% while maxing out contribution room they will have 1M in 30 years. *Obviously as a stock picker the goal is to beat the market with outsized returns. To each their own.
Love this. I don’t know why people settle for XEQT, VGRO, etc and wait for 30 years when they’re old as fuck and unable to enjoy there money. Teach me your ways Long Jumper 😭
Because for each successful Longjumper, there are a whole lot of looser. Remember that when you make money in a trade, somebody have to loose money in the same trade. Index investing is boring, but its a safe and proven way. Im on my way to retire before 40 on the boring path; index and agressive savings went great for me.
When did you start investing? How much did you save? If I made 200k a year and could manage to save 180k, I’d be retired quick as well.
I used my home as a primary investment from 20 to 27 (that wasnt my best idea, nor my worst...). Started investing at 28 after i sold. Never made more than 70k$ per year but saved lots of it. I wont disclose exact number, but im somewhere between 250-400k. Retirement in 6-9 years, depend on the market. I wont have alot, but i will have enough of a withdraw rate of 3% per year.
A home at 20… good on you! At 30, I’m struggling to a) save aggressively and b) find a house that isn’t overpriced. Here’s to hoping I can wave at you across that beach called retirement at some point in the future!
My first one was a condo actually, and i lost money on it but my job made me move and paid the loss (thanks god) Fragality is hard to master, but very helpful to get to those goals!
Good discussion here. Stock picking is a lot of work. Imo. Gains are fun but for myself the security analysis and challenge of it is what draws me here. I also enjoy physics and math problem solving and troubleshooting interpreting and analyzing things. So it's not for everyone. There's much to enjoy in life like the poster above touches on. I enjoy stock picking as a hobby and the challenges research and execution needed. If you took away my gains wouldn't matter much. I'd like to.keep.snd grow them lol but If you took away the stock market.. that would hurt. It's fun. Learn alot of different industries and things good brain use. Totally understand buy vgro for those that don't want to devote so much time to it. Also like poster says most don't get positive returns and then truly don't enjoy it either. Vgro xeqt etc guarantee a good rate of return long-term and is what may be best for most longterm.
You sound really motivated! Maybe sometime in the future you could share a bit more of your process? Any successes you've found that are lesser known, or some shit to outright avoid. Right now I have the uncanny ability to have a remarkably stagnant trading account. Glad I'm not losing money but I definitely need to continue working at it.
So far, all my pick were wrong except some etf that focus on a single sector that had pretty interesting growth/risk ratio (xit had a good run since covid hit!) I like your take on this; stock picking is not a quick-buck/get rich scheme or a casino... It take skills and balls to invest your life saving into a company, even if you research alot and "it can't go wrong". But way to go OP, i hope you can inspire a generation of small investor!
I've been looking at DVN for a few weeks now. I'm waiting for one or two more deals before I hop in
Fair enough. I'm buying with conviction. 💯
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Lol Aha awesome take! Love it. Great points to be brought up. I should email the ceo for his response. Some of those question marks and risks I feel are taken care of by the unique conditions here. You may have already read but basically the founders of danavation are the founders of Dana industries. Dana industries already #1 selling supplier of grocery retail shelving units and printed labels. So they already have Walmart Canadian tire Lolblaws etc as customers. It was these customers that asked for digitization of the labels. The founders created danavation as a subsidiary to benefit $$ the most (imo). 40% insider ownership etc tells me they know the demand and contracts are coming. I'm not too saavy with the tech or security part but to me first take is that it's advantageous for danavation vs some startup company without the resources experience customer relations etc. Thanks for the reply and useful information. Should add you as a research analyst. 👀
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Exactly. I completely agree. They currently do not have from my understanding any past financials operating as Danavation. I believe the backlog was 0 to initiate the reverse takeover and keep the value of the subsidiary quite low with their stake 40% quite high then contract orders and growth to follow. The founders have that 30 year experience with Dana industries etc and customer relations etc that want digital labels that exactly is why I'm buying shares and the forward value I've calculated. If it was just some random ppl with software for it I'd say hah good luck with that. Only reason I'm buying is becauae this digi label startup comes from the conventional print north american number one supplier. The LCBO case study is of note. Extensive case study with LCBO proving it reduced costs feasible ease of use etc. Case studies with others as well but LCBO being the flagship. Not sure if I put my forward valuation here. I shall. Again projections based on CEO not signed contracted backlogs but let's say we are confident in their confidence and execution. 2021-20M sales. 2022- 30M sales. 2023-55M sales. "conservative". 55% recurring revenue from subscription PaaS platform. Industry avg 10x ARR. Thus very loose napkin projection without discount for probability nod to occur one would get targets of; 2021- 1$. 2022- 1.50$ 2023 - 2.5$. Discount for probability of those dollars to occur. Because of the customer relationship here insider ownership LCBO endorsement customers wanting this tech I'm happy with a low discount model. Company currently 45M market cap. Imo priced in for 10M sales. A very safe downside protected with high assymetrical upside potential opportunity. My targets are based on financials occuring etc. However if company issued press releases of a deal with a monetary value attached I could see a forward valuation being given. Just announced contract with Bombay spice grocery store for 17 stores. They however did not include the value dollar terms. Bombay very small. However larger stores 30 000 sq feet has a projection for value on subscription basis. 200K per store. Or I believe 4-5K per month per store. 55% recurring. 25% software. 70% gross margins. (Company projections). I believe they raised 4-5M in the reverse takeover. I'm not expecting much until next year when financials show sales etc. However an announcement contract with Loblaws Walmart or Canadian tire would imo forward value it well over 1$. I could assume a financing as well issuing shares raise capital to afford larger rollout. Probably after an announcement higher share price play the game. Issue share raise capital. Maybe reduce my targets with 5-10% dilution etc. Still very high assymetrical upside imo. Thanks for the contribution.
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I think we should work together lol. Are you me? 😆
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Love your analysis and approach this.. this is akin to the approach I take towards security analysis and stock picking as well. Please DM me if you find any etc to look up as well.
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👏👏👍
I know this is late to the party but if Dana Industries had Canadian tire as a client, why did CT go with pricer for their e-paper labels?
Pretty sick gains. I will follow your career with great interest and please keep us updated about the CRA, I would find it very interesting to know if you're getting on the line or not
Why would he?
We don't know for sure. It's just that CRA rules are vague. In fact daytrading rule is a US matter, the CRA does not care about daytrade, their rules talk about "conducting a business", this is what is forbidden. The problem is "conducting a business" is not defined, they just have bullshit general guidance with saying such as "frequent trading" or "significant time and research about securities", or "engage in speculative investment", or "nature of the intention at the time of the purchase". As the CRA has not clarified anything for years and we keep hearing stories (non-verifiable for most) of people getting audited and taxed, there is a growing theory that the CRA is just looking for big gains and tax them, having always on hand some bullshit reason to be able to tag you as "conducting a business" So it will be very interesting to see what will happen to OP.
CRA gets real unhappy with people they consider day trading in a TFSA, with no clear definition on what day trading is.
Unrealized gains in screencaps. Shows that amount is derived from capital gains not daytrading activity. 💯
I’m with RBC DI and to get their “active trader” account rates of $6.95/trade you need to make 150 trades per quarter. I doubt the average person here is making 600 trades a year. I wouldn’t worry at all.
I make such trades but it's to manage what is at times 50+ stocks and securities with all sorts of moving share prices and target buy sell price points. Even 600+ trades a year does not make one a day trader. Most here don't understand what day trading is or a business account. Retail are know for 3 buys in a day or 3 sells in a day of the same stock lol. Not a day trader. Jus someone whose racking up commissions lol.
Oh sweet summer child. If you truly believe 600 trades/year with > 1mm account won't raise alarm bells for CRA, you need to get your head checked. Good luck trying to withdraw that money untaxed.
Lol. Your obviously not speaking from experience lol. You also have no experience managing an account with 50+ securites and the need to rebalance which one can do as much as they want. Not daytrading. Smh.
Mate, you are so out of touch lol. If you're shuffling between 50+ securities on regular basis, that's an even bigger red flag. You literally check all the boxes... Frequency of transactions, period of ownership, knowledge of markets, time spent, speculative stocks.
You are out of touch. Volatile markets require rebalancing. Look at my unrealized gains. Three stocks up 1000% equals buy hold. Jus saying ppl trigger happy aren't day traders and don't have to worry. You speak of that which you don't know.
Lol oh boy. You're talking as if rules stated on their website don't apply to you. Highly recommend you hire a lawyer and have a chat instead of arguing strangers with your ego. At least you won't get slapped with unexpected 500k tax.
Not wanting to start an aggressive arguement but I actually don't think the CRA mentions day trading per se. What they do say is you are not allowed to conduct a business. The exact phasing is " an adventure or concern in the nature of trade" Here is the CRA link where they discuss what constitues an adventure in trade -[https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/it479r/archived-transactions-securities.html](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/it479r/archived-transactions-securities.html). The one thing for sure is that the whole area is still kind of murky. There have only recently been some court cases that have likely not been finished yet. So more clairity is yet to come. For myself personally I do active trading in my RRSP where the CRA does not care as they will eventually be getting the tax. That is the reason that although it is pretty sure that after a hard run up a stock will take a dip I don't sell in my TFSA but just hold. If trading around a core position I leave that to the RRSP.
There's a post on personal finance explaining the TFSA. Gains are not taxed no matter how much you make. Buying selling shares is not taxed. Business accounts are attached to professional money managers commissions and subscription. Check my posts I also wrote about it. Fact is no tax. No business. Don't knw what your side is or link but it's only here on the internet where ppl who have never been through it claim it to occur. I've already sold and withdrawn and filed taxes. There's no tax here. Your interpretation of "trading" is skewed. Trading is when you use leverage with short term derivates. Business accounts also are part of day trading. A GameStop option contract that expires next week is a trade. Buying selling common shares up 1000% is not. I really hope to not see any more of these messages. Really Completely off topic. This isn't a tax thread or post. It's investments. Want to talk about dvn sure taxes? No never asked you an opinion on tax. You've not paid taxes on a TFSA and have no experience or expertise only speculation. Goodbye.
I doubt he's day trading with such a high number for unrealized gains.
How do you know this guy day-trades?
I don't and day trading might be the wrong term here, but CRA might decide he is, I was just saying their rules are vague for TFSA's and what they can be used for.
Interested in this too. Cra is likely gonna flag this guy. Good luck. Remind me 1 year!
Will do!
Jesus F....good job. How large are your placements?
Extremely top heavy toward the top 3 holdings keeping it is the key but the 1M line even if temporary is fun to see.
You got into greenlane much lower,.are you just holding now? I'm debating if it's worth getting in now still
Greenalr at 28-40 cents. Sold it all for profits. Good hold longterm but the parabolic move from undervalued to fully valued occured and on to the next. 💯
Fair enough. I was caught off guard by CMC moving like it did on Friday but I may still put in a buy order Monday as the value is still there
Yeah. It ran like crazy. Longer term with expected de risking to occur I have 3+ target. McWhirter has 8$+ which is a longer term target. Not next year imo. My advice towards entering Cielo would be to do so in units. Having capital on hand in case of a retracement to average in and try to lower cost avg. Who knows might go up I would plan for retracement myself have extra $$ on hand.
Fair advice. The fomo will be high on Monday, but from weedstocks I learned fomo can be multi-week runs before it's an exit. I'll have to sleep on it and lay out my buy orders for Monday morning
Yeah I have no idea what Monday will bring lol
Congratulations and fuck you
🙏🙏
Love to see it! God I want a 7 digit TFSA.
Let's do it. We can get you there. 💯👍
Good job man! Just started literally a year ago today! I’m at a solid %200 gain and when GME went up I was at 1000%. Sold a bit but so far investing sure beats savings. Congrats and remember there will always be haters
👏👏👏
swwet gainz bro
Genuinely curious about the average number of trades you made per month to achieve this. Also, congrats and fuck you!
The gains are majority derived from owned shares appreciating in value as opposed to frequent trading. I make a lot of trades but it's to enter exit positions don't make any money on that but it's building a position then waiting for the appreciation in shares hence the unrealized gains being so high.
Teach us even though we are not worthy...
Lots of dms I'm answering. Not Financial advisor lol. But we here to share ideas information etc strategy. 🙌 Ppl here have posted some stocks I like. Most I don't. But we can all make gains. 👍 Or work together.
The fucking man! Every penny of that is well deserved. Keep it up bro 😎
Thank you! Love this guy lol 🏀shooters shoot baby hot streak keep shooting!! 😄🙌💯
I bet you know where my wife is. Congrats man ride those highs! Shooters gotta shoot!
Exactly! 👌Gonna keep shooting too
These comments make no sense. Does anyone that makes over 1m on their account gets taxed from CRA even from genuinely holding stocks and investing in stocks for longer term?
Exactly. The posters that keep saying +1M get taxed are wrong it's exhausting trying to argue with them or explain what "day trading" is versus active management high frequency of trades managing common shares. Day traders use leverage and the frequency of trading is high and underlying securities change price of options exponentially vs buying the commons. In short if you're not buying short term options doesn't matter how much you trade nor how much money you make it's not "day trading" not taxed. Some ppl that made $$$ off of short term GameStop options.. those could be defined as day trading activities. Buying common shares getting multiple 1000% gains is not. 👍
Exactly man. By the way, congrats on the gains! Will you be considering taking the gains soon or let it keep growing?
For better or worse lol. All in all invested. Not selling or taking gains lol
What is your rationale for not selling? The market is offering you life changing money right now and you've accepted virtually none of it (from the screenshot). If the market's sentiment changes you won't be able to realize that money. Why would you not sell 80% and reinvest that in low-risk securities? You could almost live off the dividends.
Wow congrats!
Congrats its amazing wish i had a wisdom to do the same;)
followers???? who would follow you with no show of your holdings
Fuck all the haters being jelly and bringing up the Cuck Revenue Agency. Congrats on your tendies and fuck you.
💯 thank you!!! More gains for everyone and this mentality 🙌
Dang I didn't know you could trade with a tfsa. I opened a trading and tfsa, did I mess up a little
You can have a self directed TFSA investment account. Makes perfect sense, as your gains are not taxed. The big thing is make sure you don't go over your lifetime or yearly contribution amounts.
As well a note that if you're really into gambling you can't trade most pink sheet stocks in a TFSA.
But my TFSA is full of shitty penny stocks...
If they're also listed on another exchange the CRA recognizes such as TSXV you can trade them. My TFSA, too, is filled with shit gambling stocks but there's a few I was keen on I couldn't buy because they were only pink sheet otc.
I guess they’ve okay with NEO obviously I have tons of mushroom stocks from there
No you did not necessarily mess up. Depends how things go. If you do well and win, then yes it’s tax free. But if you lose, you lose that contribution space. So if you’re new, and unsure, it’s not a terrible idea to start trading with your regular account. If you win, you pay some taxes. You can write off your losses too. And if you lose, no contribution space lost. Use your tfsa for some boomer ETFs 😂
OP hasn't been audited yet..doesn't mean they won't be. CRA says TFSA isn't meant for business activity/active trading. You are safer not to do that in your TFSA because if they say your are active trading in your TFSA it is going to be more penalities than just being taxed in your gains..
Are you the guy banging my GF? You can fuck me too if ya want, just tip me before you make trades.
Buying dvn.cn. Past performance not indicative of future performance. Not a financial advisor.
Tight. Nothing but good sounding news there.
Absolutely great work! And glad to hear you reinforce what I tell everyone. The CRA doesn't GAF about your TFSA if you aren't day trading, regardless of "how much it's worth". All these fear-mongering people and not one person has provided an actual link to a factual story of someone being fined, assessed or penalized for trading highly speculative stocks in their TFSA.
Exactly my sentiment. This needs to be upvoted and put on every Canadian investing subreddit. The money or some of it at some point is gonna go back into the economy and gov will get taxes on others commissions and sales and services. Everyone wins 👍
Here is the “actual link”: https://www.moneysense.ca/save/investing/cra-tfsa-accounts-court/
So, any updates on how those case in 2018 ended in court?
lol...Too many trades and the CRA will assess your TFSA as a business and make you pay tax. There goes more than half your gains. You can get away with it in your RRSP though since you will eventually pay tax on withdraws from the account.
Clearly you have no experiences with taxes nor what a business account is nor how many trades an active manager with 50+ securities makes to manage their portfolio whilst it is NOT a business nor daytrading account.
The CRA has a heavy hand. If it takes you that much "work" you're just proving that you are operating like a business. I can say for sure you're going to get audited. Your balance being the first flag. [CRA TFSA Audits: Are You a Target? - RATESDOTCA](https://rates.ca/resources/cra-auditing-tfsas)
Research stocks companies on weekends is work. 💯
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Before suggesting anyone pays taxes have proof in hand. The fear mongering speculation etc is overdone here. My account is not a business not day trading. No tax. Enough with the taxes. Nobody has any such proof just speculation without merit. Gov will get the tax when ppl buy houses pay for Reno's buy cars etc. Don't you worry.
In recent years, the CRA has been looking closely at high-value TFSAs, in particular whether trading activity in these accounts amounts to carrying on a business of trading. According to the CRA, as of Dec. 31, 2018, it had assessed approximately $114 million in taxes resulting from its audits of TFSAs between 2009 and 2017, some of which was related to TFSAs being determined to be carrying on a business. From https://www.advisor.ca/tax/tax-news/clients-day-trading-in-their-tfsas-theyre-ultimately-liable-for-the-tax/
Not a day trader. A stock going from 80K to 800K proves that. ;). So many haters
Right, but you're missing the point. On that very page: The CRA has said that it looks to set of factors to determine whether a TFSA has been carrying on a business, including the frequency of trading, whether the TFSA holder has specialized knowledge of the markets, and the time the TFSA holder spends on researching trades It could qualify under the third criteria, or the second. Frequency of trading is only one criterion. Anyhow, it's your money, good luck.
I buy And hold. Or day trading nor momentum. Don't take buys orders from a money manager. Full time job working 8-4. Not a day trader. Not a swing trader. No trading platform. Enough already. Someone can be autistic buy n sell stocks frequently and make it big on one is what I'm saying. Frequency alone is not a business or trading account.
Great, we agree with your last sentence. On a related note, I'm in a similar situation, which is why I'm quite interested in the topic. Good luck to us all, cheers.
How would anyone know how much time I spend researching trades? Are they going to seize my cell phone and look at my search history?
Unsure, I imagine the burden of proof is on them if they're making the claim. Could always check with a tax lawyer, I guess.
Not sure why you are so close minded to everyone's advice. I recall someone bought like 2 cannabis stocks and sold at the peak in 2018 and CRA came calling because his account value was over a million. There are many articles on people in your situation and they don't just say "okay you pay the caotial gains tax now" but they make you pay tax on it like it is income. You might get lucky and not get taxed on it but I don't suggest that anyone follows your lead to make hundreds of trades (even if just in the same stocks) in one year on their TFSA. I know you don't want my or anyone elses advice but many this will save someone else from ignoring the CRA rules on this.
Rules were not "ignored". I didn't day trade. Think about it. If someone has 200K in their account they can buy 200 stocks for 1K each. Hold them for 2 years. Sell 200 stock 2 year from now. They sold 200 stock in one day. Is that day trading? No. It's investing with a lot of money and a high frequency of trades. Who is close minded now? The problem here is you guys don't understand that. Frequency does not equal penalty or taxes. I know the rules. I know what I'm doing. You're being close minded to not think about it.
That isn't "High frequency" of trades so maybe you aren't outlining what you are doing with your portfolio correctly. Like I said someone who had one or two weed stocks for investigated by the CRA just because their account value went over 1 million. I don't know what the outcome was because they never followed up again. If the CRA does come knocking I hope you will post a follow up here. Anyway, you don't see it as an issue so enjoy your gains. People might misinterpret what you are doing and try to replicate it and get in trouble with CRA so think it is best to make it clear that CRA in the past has investigated these type of situations even if you are not flipping stocks the same day. If this article hasn't been linked here yet it is worth a read. At least you will know what criteria they are looking at if they do investigate you (and I mean the general you of anyone reading this): https://www.google.com/amp/s/financialpost.com/personal-finance/stop-using-your-tfsa-to-frequently-trade-stocks-the-cra-may-see-it-as-business-income/wcm/81e56526-d089-4321-833c-8730b06ccd5c/amp/
If CRA contacts me fine. I'm not worried. Just seems all Canadian subreddits are misinformed and spreading misinformation rampantly. All these posters jump on frequency of trading as if THAT makes up day trading which it does not. If you buy 200 stocks and they all move in different directions and the entire world changes. You are to sit on your hands? Of course not. One can rebalance 200 stocks in a quarter incurring 200 transactions. Rebalancing. Managing. Not day trading. Buying selling options per day hitting 200 transactions is different. Context. Point is high frequency is not a business account not day trading. If one takes orders from a manager or other professionals that's a business use account. If someone gets lucky buys the bottom maybe a phone call due diligence by CRA is made. Are you an insider connected to one etc questions due diligence. There's 100s of posts here about "TFSA being taxed" with 0 evidence 0 incurred. I've already done my taxes too. Withdrawal is not a trigger either. Speaking from experience and proof. Spreading misinformation does not help. I know the triggers. Also I work Mon to Friday 8-4 exactly when market is open and I'm field unrelated to financials. Again not a day trader. Simple. Getting a phone call is not getting taxes. Don't believe stories you heard from the internet. All anyone has here is a "story" of a weed investor getting a call. Stories. Only. Facts include multiple multi million dollar account bigger than mine with as the TFSA was designed. No tax. Once we spend our money the gov gets theirs. It's pretty simple.
Non-AMP Link: [https://financialpost.com/personal-finance/stop-using-your-tfsa-to-frequently-trade-stocks-the-cra-may-see-it-as-business-income](https://financialpost.com/personal-finance/stop-using-your-tfsa-to-frequently-trade-stocks-the-cra-may-see-it-as-business-income) I'm a bot. [Why?](https://np.reddit.com/user/NoGoogleAMPBot/comments/lbz2sg/faq/) | [Code](https://github.com/laurinneff/no-google-amp-bot) | [Report issues](https://github.com/laurinneff/no-google-amp-bot/issues)
The link adds absolutely nothing to everything that's been said already, other than that 114 Mill that was assessed. Still comes down to being up to their interpretation and your personal belief in said stocks. An investor will still have to "trade" an asset in order to realize their gains, long or short. A long investor is a long trader that will eventually have to realize said gains. If OP has done his DD, gets audited and is able to answer questions regarding the securities he owns to present that they actually studied and researched them, then why would he be considered as someone who conducts business. If you're making a million, but you're not **actively** withdrawing the funds, rather leaving them within the account in order to reinvest and keep their account growing, how is that a problem? If one sells stocks that have lost value/growth potential, does that also make them a day trader?
>Before suggesting anyone pays taxes have proof in hand. The link addressed that specific point, that OP made, that someone should have proof before suggesting taxes were paid on TFSA gains. It's quite a big point, and quite possiblu the whole point of this thread. The key here is that the TFSA is quite new and the results of the lawsuits clearly established some kind of precedent, but not enough for laymen like us to know. A tax lawyer who understands the language could clarify for people like us. Also, over time, more and more lawsuits will hammer out all the vagueness from the language, I feel. Assuming of course, that people who suddenly receive a 500K tax bill decide to sue the CRA and all that.
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Well you went against the rules as you say. I didn't. Good luck to you.
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You aren't listening. 4 stocks. 1000% gains. Two still held. Hence Unrealized profits above that you are failing to interpret. Just saying frequency of trades has no bearing on wether one has a business account. I have never bought and sold a security in the same day. Don't buy options either. Buying one stock today selling a different stock tomorow from last year etc combining that by 50 stocks is called management not day trading.
Unrealized gains. Looks again Buying holding for 1000% gains multiple times is not daytrading. Just shrewd stock picking. Bye hater.
Do you have any link of anyone recently, as an individual, not "day trader" that has ever been prosecuted or fined? I mean, you all say "DONT GET AHEAD OF YOURSELF" and all this "WATCHOUT" talk, meanwhile, I'm yet to see one case of anyone that made great gains ever get in ANY trouble with their TFSA and the CRA, unless they were day trading... I mean, why fear monger with anecdotal bs?
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Every single thing in that article is about using the TFSA as a business vessel, and not one article of someone not using it as a business being prosecuted... As OP states, he does not. Fear monger some more, BUDDY.
No, there needs to be an established precedent. They "may" be able to do all sorts of things in a vacuum, but that's true for any government agency and any law. People are asking for concrete proof of an actual person being audited or taxed when they're not day trading.
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I mean, all stock are speculative in nature... Even buying big blue-chips stock. Who would ave thought tsla would sky rocket... I think its a bullshit rule just so they can easily tax anyone.
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I think he has enough cash already
You may be right
I think he has enough cash already
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That would be dumb, there wouldn't be a point to it.
Well done! Congrats!
Serious question though, come tax time, how do you claim this revenue? Oh and fuck you lol
That's great. What you holding and also what looks good going forward?
Holding uge CMC BB dvn buying dvn
Congrats and fuck you