This is not the first time that I want to start a blog to record down my opinion and actions as well as create a track record of my portfolio, but I am always lazy to do so.. Anyway at least I bought a small notebook to record these information down so I can review my results anytime I want. As the first post of this blog, I am going to summarize all my transactions from January 2017.
Before we start I am going to introduce myself first.. I am a student of UQ studying Accounting. I have 5 years experience in the stock market, however not much profit was made. I used to be a TA person who is looking for quick profit and focus more on the chart pattern. I understand that there are alot of information behind the chart but I always failed to make profit from those information. Currently I am a FA person who only use TA to look for entry and exit point, but I have to admit that I have a very bad trading skill so I made tons of mistakes in last five years, which generated tons of transaction cost and opportunity cost. (yeah transaction cost is really a problem for high frequency trader in singapore, even though there are many promotion for cash upfront account now but yeah it is still expensive.) I realised it is very hard for me to make sustainable profit from trading so I slowly turn myself from a trader into a value investor. I also made some estimations on investingnote which can be found in the link below.
https://www.investingnote.com/users/allenlow#/?tab=estimations&display=profile&user=allenlow
In January I made quite a number of transactions which is not very ideal from a value investor's point of view.. but well I have learned my mistakes and will slowly improve from there.. Lets take a look of my January transactions, I will combine all the transactions of each company together so it is easier to read:
1. Sapphire
a. Buy@0.31 - 30lots
2. ISDN
a. Buy@0.225 - 38lots
b. Buy@0.26 - 38lots
c. Sell@0.245 - 38lots
d. Sell 0.205 - 38lots
3. Sinostar Pec
a. Buy@0.163 - 41.1lots
4. Ascendas Reit
a. Buy@2.43 - 3.5lots
5. Asian Pay TV Trust
a. Buy@0.415 - 20lots
6. ComfortDelGro
a. Buy@2.53 - 3.8lots
In January basically I was trying to accumulate more shares as I found 2017 should be a bull year. However, part of my transactions are made based on TA (or tips) such as Sapphire, ISDN, and Sinostar Pec. I bought ISDN as it is going to list on HKEX so I was hoping for more buyers to cook the price up. Unfortunately, the price did not match with HK price. When HK shares are selling at around 0.29SGD, singapore ISDN reaches its peak at around 0.27 then free fall started.. First I bought it at 0.225 and made four digits paper profit within a short period and I was hoping to TP at around 0.29-0.3.. so I increased my stake at 0.26. ouch, I tried to sell part of my shares during free fall at 0.245 and sold all my shares after free fall at 0.205. ouch from four digits paper profit to four digits ACTUAL LOSS. These transactions show that how bad my trading skill is. So this also shows that if I want to achieve my financial freedom from stock market, perhaps value investment is a better choice..
In February I made more transactions after I read more annual reports of the companies..
1. Tai Sin
a. Buy@0.395 - 18lots
2. TTJ
a. Buy@0.38 - 18.5lots
3. Design Studio
a. Buy@0.575 - 12lots
4. YZJ Shipping
a. Sell@0.91 - 11lots (Buy@0.825 - 11lots in December 2016)
5. Bank of China (HK)
a. Sell@3.79 - 6lots (Buy@3.3+ - 6lots in October 2015)
6. Asian Pay TV Trust
a. Sell@0.445 - 20lots (Buy@0.415 - 20lots in January 2017)
I took profit from Asian Pay TV Trust. This is a counter with super high dividend yield (around 17-20% at my buying price). However, after I learned more about value investment, I found that such dividend yield is not really sustainable, as the dividend payout per share is higher than earning per share... I bought Bank of China HK way back in 2015 October at around 3.3+HKD and it fell to 2.88HKD after few months. I decided to hold on to it as the dividend yield is still very attractive (more than 6%). I decided to sell it away as I found that the dividend payout is slowly decreasing over years, and I believed the bad debts ratio are very very high based on what I saw and what I heard from my friends in China. I also read an article shows that some banks were trying to ask people to pay their mortgage as soon as possible because the mortgage rate is even lower than 5 years fixed deposit. (few years ago I believed there is even some penalty if you want to pay your mortgage earlier) That doesn't sounds good huh, so I decided to sell away the shares with four digits capital gain (HKD) plus one year dividend (around 5% after tax?) I also bought YZJ shipping last year as I found it was undervalued. I sold it at 0.91 and planned to buy back at cheaper price but next day it went up to 0.99... the day after that it drops to 0.91 again and I was thinking that I should be able to buy back more at around 0.85.. then it went up again and it trades at around 1.2+ today.... I was able to earn more than 4k but due to my bad TRADING SKILL.. well I can't blame anyone and must learn from this huge mistake. Maybe I should hold my shares for longer period if the FA is good and dividend is sustainable. TTJ, Tai Sin, and Design Studio is three good companies with good FA (with good dividend yield too) and I planned to hold for long term.
In March I was thinking that STI should have a correction soon, so I tried to reduce my STI index counters. However STI only drops around 100pts and continue its bullishness.
1. Sinostar PEC
a. Sell@0.191 - 20lots, @0.19 - 20lots, @0.188 - 11.1lots (Buy@0.163 - 41.1lots in January 2017)
2. Keong Hong
a. Buy@0.435 - 16lots
3. Ascendas REIT
a. Sell@2.51 - 3.5lots (Buy@2.43 - 3.5lots in January 2017)
4. Tai Sin
a. Sell@0.46 - 18lots (Buy@0.395 - 18lots in February 2017)
5. Sapphire
a. Sell@0.33 - 30lots (Buy@0.31 - 30lots in January 2017)
After a big drop, I managed to sell all my Sinostar PEC with good profit.. I sold my Ascendas REIT with profit (capital gain and dividend) too due to the following reasons:
1. interest rate hike, future profit (dividend as well) might be affected
2. planned to allocate the funds to other growing companies
3. STI might have correction, so might be able to buy back at cheaper price.
I also sold my Sapphire with some capital gain, as I have changed my investment strategy and decided to sell my shares with too little or no dividends. I will discuss of my current investment strategy in another post.
I did not make any transaction in April because too busy + vacation to Japan.. I will discuss the transactions in May in other post too.
So.. after going through of my previous transactions again, I found that number one reason that my portfolio's return is much lower than STI's return is trading. I anticipated the future short term price movement as well as STI movement, and more than 90% of my anticipations failed LOL. so I did not efficiently allocate my funds due to my anticipation. On the other hand, I found that my transactions that based on FA turns out more profitable so I should put more effort into this area.
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