Trading Book Performance - Feb 2021 - Chaotic Market

The market has been thrown into a big turbinal due to rates move (interest rate movement) on the back of reflation concern. In very layman's terms, the world's interest rate (America) is increasing on the back of the economy reopening and thus interest rate has been shooting up higher and higher every day over the past week. This raised concern that growth stocks or US equities might have overrun thus a bubble that caused the big retracement. 

Personally, I also got hit quite badly and if the equities market doesn't recover, it might just undo my Feb gains. You can look at the figures below where I am only sitting around 700USD gains. I've also taken a few fallen knives. 

However, I am still very bullish on the US equities market but I am not keen to add any more at discount due to my margin requirement. Honestly, I am very risk-averse as I've made quite a fair bit of money (more than what I expected).

I expect this hike in rates won't be sustainable and also money will flow back into equities eventually. The central banks across the globe are also putting in efforts to keep the rates low.. so this might help too. Generally, I feel that the economy is too bullish in its recovery. 

Let's see how next month will go. I'm currently heavy on options.. hopefully, the market will recover. 

How are all your portfolio doing?

Cheers to month-end. 

Trading Book Performance - Cup Half Full/Half Empty

Feeling sad.. ending the month with quite a severe loss.. I gave up about 1/3 gains in Jan.. (my first month). Honestly.. not losing money is a great thing and I actually reach where I would like my dividend gain to be this year without collecting any dividend yet.. 

I started to follow meme stocks.. and got a little over my head.. while I collected some decent gains.. I ended up in red for all my meme stocks. 

This actually teaches me a lesson not to be too greedy and stick to the plan.. "be cautious when you're getting greedy" is really well said. 

However, it still hurts seeing my performance dipped from ROR 59% to ~36%... but I'll trust the process.. and hopefully, maybe reach SGD12k by end of the year seems to be an achievable target.. this is my bottom line.. and hoping that with this.. I can be more satisfied with myself.. currently, I'm sitting at ~SGD3k up. 

I foresee the start of Feb to be a tough month with meme stocks still being in the focus.. I might continue to follow some of the lower-risk ones that are not overdriven yet. But this also negatively impacts my medium-term trading & investment book since meme stocks actually feel like an asset class by itself and are negatively correlated to most stocks.

What's your take on this meme stock rush.. and how has your portfolio been performing? But I also see this as a bargain sale to buy some of the more solid names as they continue to dip. 

Tiger Broker Jan 2021

I've been putting some part of my salary into Tiger Broker on a monthly basis.. As I've only recently started trading.. my trading book is really much smaller than my investment portfolio.. I plan to put all my investment funds into Tiger this year.. and diversify out of my Singapore Investment. 

I just need to make sure there's a way for me to separate my medium-term to my long-term positions.

How was your Jan if you're in the stock market? Hopefully, I can have a similar performance for Feb and bring this to a good year.

Cheers~

First Post - Merry Christmas!

Merry Christmas everybody! What a weird day for me to start writing on my journey (guess it mainly because I’ve time now).

First thing I always do when I encounter a new blog is to head over to the “about me” section to learn more about the person before diving into their post, so check that out here.

Hopefully you’ve checked my profile out before continue reading, and I will eventually start to share my views/journey/portfolio etc going forward.

First thing first, I regard myself as Passive Investor/Swing Trader, and my proportion of money in these are probably 90:10, and I hope to eventually grow my trader portion more. I will be going through the description of these 2 in this post.

Passive Investor

Investopedia can be your best friend as a beginner, and is a very good place for basic information and definition. As much as there is passive, there is also active investing, read more about it here. Simply put, I invest over the longer horizon, targeting either a good bet for capital gain, or a consistent dividend counter. Once I decided on a counter, I’ll go through the fundamentals and then decide on an entry point (sorry Dollar Cost Averaging peeps, I don’t believe in that) and act on it. As a passive investor, I will be updated with important news of the company, but I also plan to sit on the investment for a longer horizon, thus ignoring minor price move. For short, I call this my investment book, and hopefully I can generate enough passive income that can match an usual employee.

Swing Trader

With my net worth growing after 2 years of working and also changed to a new workplace (with less trading restriction), I finally have the capability to set aside some money to capture some trading gains. To me, I plan to tap on a handful number of products to capture short-to-medium term profit gain and I favor fundamental analysis over technical (which I am not very verse in, but slowly learning technical analysis). Read up the definition on Investopedia here. I call my part of investment in this portion as the trading book, which I plan to lock in some easy capital gain. Every dollar earned, is another dollar that you can invest and compound upon.

That’s it for today, ciao guys and stay safe!