22 September, 2017

3 Successful Trades: skills or luck?

The market has not been interesting lately and most stocks are trading lower today due to expected rate hike. As blogged earlier, I will be trying some trading here and there. In the month of September, I have made three trades and all within a two days period.  While these are profitable trades, it does not mean it will always be profitable. Nobody is perfect. I ever lost money via trading 1 year ago.

Among the 3 three trades, mm2 Asia was traded twice and today was the most successful. This is due to two reasons: 1) the market is quite negative today yet it earned itself a 3 percent gain, 2) it moved the most compared to the first mm2 trade, along with more lots being traded. Below image is self-explanatory. Though the earning is not fantastic like most traders, there is no wrong in profiting when the price is right.

 
There is a saying here : “You can also lose a good bet no matter how sound the underlying proposition, but if you keep placing good bets, over time, the law of averages will be working for you.” – Larry Hite

01 September, 2017

Investment Portfolio Update-August 2017

Time has passed so quickly and we are now nearing the end of 2017. I realized it is not easy at times being a long-term investor for long due to the existence of temptations such as cryptocurrencies and pennies stocks where people can easily double their returns by gambling or doing chart reading. It takes a much longer period to get the same returns by longing stock while the advantage we have is better risk control since we can easily wait a loss out. I have been contemplating to be a Hybrid investor, which one will long the market and at the same time do some short-term trades. Before doing that, one needs to know how to read the candlesticks and understand TA.

Back to my investment performance, I have recently sold Capitaland Retail China Trust at $1.65 even before its CD period. Much later, Sembcorp Industries and Wilmar were added to my Portfolio. Doubled my Singtel shares recently due to its oversold level. While the market has become expensive since STI has reached its all-time high, there are always gems lying around at any point of time. As of now, I enjoy the diversification in my portfolio. FCOT is doing great and I decided to keep it due to its high dividends and it being under FCL’s umbrella. Yes, I have let go FCL too early and it has passed the $2 mark. It is hard to know when is the peak.
In August, dividends were received from all four holdings: FCOT, Sembcorp, Singtel , Wilmar.

As for personal learning, I greatly recommend reading the book Beating The Street by Peter Lynch. The author himself favors stocks over bonds and it makes you want to read on compared to other financial books. The most interesting part of the book shared so far, is about the stock picking skills of a group of students at St. Agnes who has not only beaten the market but also beaten the performance of most fund managers. During the 1990s, their stock picks included some of the big names such as Walt Disney, Walmart, Nike, Gap, Topps and IBM. These names were not popular as they are now, just like during when Facebook just started. You may love this book as well.