Since almost everyday this past two weeks, I have been hearing news non-stop about Wall Street and the great falls in indices across the major markets.
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Just like I've mentioned my 2 losses,
I would want to celebrate a small win on hindsight. Effective 1st April onwards, the first $20k in ordinary account cannot be invested etc so it is locked in. Like many others, was considering whether to go ahead and invest up to the maximum before the ruling takes effect. In fact many did, in the various instruments.
I didnt in the end cos of a few reasons. First to invest the cpf for stocks, it meant going to one of the local bank to apply for a CPF-investment a/c. Then it takes a few days to process. Besides that one has to have a trading account with either POEMs or the various broking house. It meant settling up an account with them, linking one bank account to it, SGX account to hold your shares as they are scriptless and also linking your bank acc to share account to payment mode eg ATM, cheque.
K the Poems part, I set up long ago but didnt try to trade. The CPF part, I had to drag my ass out of the home early on a Sat morning to do it. I put it off as been very hectically busy during that March period. Then was still monitoring the share prices, and all are very high, in the range of $4-7 for those counters I was KIVing. So even if invest before the deadline, not getting much value as its too expensive, cant buy that many lots. So after the deadline, a few months later then I got about to finish the cpf-investment part. (I am not getting married soon or buying a house so shares is the one for me)
So where's the win? Well the decision NOT to invest then is good given the huge declines now. Looking back, across the board, those counters have lost in the region of $1-2k and some I was monitoring, even more $3-$5k (but didnt buy those cos they are TOOO expensive but I was just monitoring them) So now have used the same cpf amount to buy at some 40% and greater discount compared to the prices in the start of the year. BUT nobody knows if it will fall even more. Can only trust oneself to be prudent and try to monitor and make a good judgement.
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My losses
My father is starting to go into the Sg market. Err me and my sister were 'burning' inside already being too impatient after more than 1 year and decided to jump in to buy 1 lot each to stay 'invested' and 'try waters' since we are relatively sheltered by father. Cos we buy and sell when he recommends and we buy his portfolio of stocks. So we wanted to foray outside the comfort zone and get 'dirty'. Indeed we got more than dirty, we were burning backside. Then later on, in July, I bought another lot cos I monitored the prices and it fell about $2 already. But now it has fallen more also. So that 2 decisions are my LOSSES.
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As I've mentioned, my dad's going into the market and monitoring and buying. He and I had the same thought, that its cheap enough to buy one particular lot. So both went in without telling each other. I managed to buy 2 lots with cpf (cpf can hold longer term cos its not immediate money in bank account) but he didnt manage to get it even lower. Prices shot up $0.30 just before closing and remained above $2. Well both of us dunno if it will fall further but its an encouragement for me that my dad also felt it was a fair price to pay for that counter. Lemme keep trying.
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An interesting (at least to me) phenomenon that my dad mentioned was the Election effect. Simply, the election is now stalling the market from falling further. In 27 more days, the US president election will end. Lemme see with my own eyes if it is true, that the market may fall even more then. Lemme practice more refrain and patience NOT to just jump in too quickly and burn (should have learnt my lesson...)
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