Tuesday, 14 May 2019

Quick update - May

  • I have stopped pair trading completely and embarked on swing trading before the trade war started. Again. Picked up my Jedi stick to train my psychology and temperament with a "never say die" attitude this time round. (So let me take back my previous conclusion in one of my posts...)

    What have I achieved ytd?
    Despite missing the early rally in the first quarter of 2019, I have managed to catch some late rallies while they last. My "heroes" were Walt Disney and Monster Beverages. Pocketed some neat profits riding their uptrend and later got whipped out by the trailing stop during the price rally pull-back. Setting trailing stop loss is an art. Trail too close and I would risk getting stopped out unwittingly, trail too far away and I would risk not locking in as much profits as I could have. That will be a topic for another day.

    This time round, I traded with a different psychology and approach - ditched my "sure win" self-conviction when initiating positions, "played safe" by being more careful about margin of safety and degree of volatility, set trailing stops (when you take care of the downside, the upside will take care of itself), and minimizing the use of CFD (leverage can make one take on a bigger position than one's risk appetite sometimes).

    I realized that trading is an activity that allows self-discovery. It makes you find out about your inner demons and if you spend enough time on reflections, you might find just the way to deal with them.

    However, despite all that work, I might have been better off buying S&P500 etf since Jan and stick it out till stopped. See return illustration below for my return bench-marked against US500.
My cumulative P/L (USD) YTD

Return % still fall short of S&P500... kns
  • Hoping to catch the tailwind of a market down-turn, I am putting up some short positions. If they are profitable, it means I am getting some effective hedge against all my long positions (which would likely see red). I just hope I don't get whacked upside down by the volatility like last Nov's.

    In the meantime, let's get ready our war chest to take advantage of the trade war onslaught on the stock markets (if it happens).

  • I planned to see how I can milk more interest from the boosted DBS multiplier account. I won't go into the details of how good is the boost, as you can read up over at InvestmentMoats. I will make my way to a DBS branch some day and find out more about their qualifying insurances (to try max the 3 additional criteria). Perhaps then I can shed some insights about them next time.

    It is not difficult to hit 2 criteria which are credit card spending and investment (see the hack using SSB). To fulfill the 3rd one is a little... tricky.

  • There's a few REITs that I am currently watching. One of them is First Reit which I already have a position in, another is OUE hospitality trust. There's news of proposed merger with OUE commercial trust. The deal doesn't look bad for now, unless OUE C-Reit suffers a further plunge in price. We shall see.

  • Joined a few Spark Connections events before the $100 sponsored credit ends (sorry now ended liao hor, wait for next round). Had some great sightseeing and shopping fun overseas as I went with one of my friends.
    Credit can be used to offset 50% of the event fee, it's rather worth.


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