Definately use the TFSA as a high risk money maker!!
I completely agree with putting high risk investments, hoping for a 'home run' deal and then converting the 'winnings' into more conservative dividend paying stocks. The day my TFSA opened in January, a junior exploration company that I held dipped to a 52 week low - $0.10. I had 125,000 units at the time (book value of $0.20) and transferred 50,000 units into my my wife's and my TFSAs (100,000 combined). I lost the ability to claim a loss of a dime per unit.
As of yesterday it is trading at $0.30/unit or a gain of $10,000 (200%) in each account. I missed an opportunity to dump them at $0.42 in May which would have allowed me to pick more up again when they dipped to the $0.17-$0.22 range. I called TDWaterhouse with a question about depositing warrants into the TFSA and they put me on hold for a really long time. When the trader got back to me, he said when he asked his manager my question, they thought I had overcontributed to the account because it was over $20,000
The news on this stock is promising and it appears they are headed for production. The drilling results have been quite impressive.
IF anyone wants to watch the stock it is RXE (RXEploration) and trades on the CNQ. If it gets to $0.50 soon I think I will consider selling most units. If anyone has suggestions for what to diversify into (I REALLY like EIF on the TSX) let me know.
I call my TFSA my OSBA (off-shore bank account).