Sharing my amateur investment approach
Dear fellow investors, I just want to share my investment approach, do pardon my ignorance.
Some time in April, I read that the US Fed had been intending to lower interest rates and this would benefit reits so I researched about reits and decided to invest into the 3 Mapletree Trusts. Then I applied the following strategy.
1) I decided that I would put $60000 into each trust to spread out the exposure to different property types.
2) Next I divided my $180000 into 20 parts of $9000. On each day when I buy any shares, I will purchase slightly above or below $9000.
3) I will only purchase shares when the arrows are all red. If the stock moves up, I try not to buy. Just think, would you shop at Uniqlo when there is a big sale or when there is no sales?
4) When the stock price drops even by a few percent, don’t sell in a panic. in fact, this is the time to buy even more. Always read and find out the reason why the stock is falling. In the case of reits, most of their profits and dpu only dipped by 10 - 15% so there’s no justification in the share prices dropping 30 % or more to below even Covid levels.
5) When the stock price rises, don’t be too quick to sell for small profits. Read the news to find out more if there’s still further upside. Last year when I started investing, I bought SingTel at 2.32 and sold at 2.45, it’s now more than 3. YZJ at 1.49 and sold at 1.67, it’s now more than 2.50, DBS at 33.38 and sold at 35, it’s now about 38.
6) I also try to reinvest dividends to grow both my positions and future dividends. Even if the price is trending up, I’ll still add more. I don’t worry about the price falling back because as long as I stay invested, my position is always generating dividends which can make up for the price drops. Eventually it will go back up and because my position is always growing, future capital appreciation will be even greater.
I hope this sharing is useful and I look forward to productive discussions with all of you!
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shy Hyena_3709 : All are honest experiences
dydxequalszero OP shy Hyena_3709 : Thank you
summer66 : Thanks for sharing. I was reading, researching and literally crashing into every wall every day since August, only to realize I invested the wrong way.
dydxequalszero OP summer66 : Hi it’s all part of the investing learning journey. All the best!
Laine Ford : no share
FinanceCalculus : i counted it is more likely that you fired $3k per shot. You charts showed about 60 B. B i think means Bought
dydxequalszero OP FinanceCalculus : Yes, 3 k for each stock.
FinanceCalculus : so your write up above is a bit confusing. 🫤 but we got the idea thanks
dydxequalszero OP FinanceCalculus : Thank you for clarifying. But to simplify, I could be buying $9k of one stock each time or $3k or 3 different stocks or $4.5k of two different stocks.
dydxequalszero OP FinanceCalculus : Basically the idea is not to deploy all your funds at once so you can dollar cost average down of the share price drops. If the share price increases, you can deploy into other stocks instead.