A day in my Investment Journey
One month ago, I embarked on my journey into stock investments. I have dipped my toes initially and now I have one foot in. Today, I share a sneak preview into a day of my investment journey. Before that, let me give a brief summary as to what I have been doing.
In the beginning…
A month ago, I signed up an account with Tiger Brokers, did a fast transfer in, and funded the account within 1 business day. As there was a promo code for new sign-ups, I received a free stock: Ford. Thereafter, I went on to buy some stocks when they look undervalued, sell some stocks when they look overvalued.
I also tried to look around for a telegram channel for additional support but found that it was lacking so I started a telegram group chat (link below) for people using Tiger Brokers in Singapore. Over the past one month, we have seen the group size grow from 3 to about 300.
My investment mindset
From a quick glance over the past 1 year, the most recent dip is in end March 2020. If you had purchased any stocks then, you are most likely profitable now. I started in early June 2020 so it’s slightly harder to be very profitable, but we work with what we have. Knowing that the prices now are quite high compared to a few months ago, I decided to phase my investments in slowly. Of my net asset, I am prepared to invest 20% at most. Hence, I decided to phase in 2% at a time. I have phased in twice so far and am currently at 4%. I do not plan to increase my exposure unless there is a big dip in the next few months. I remind myself that I am investing for the long term so there is no need to go all-in right now.
#finlitwithdavid Investment is a long term strategy and should be planned
A day in my investment journey
Last night, I got a telegram message from someone asking me this:
Hi David, can you share a bit more about how you see price movement?
So I gave him an example of a stock I was looking at and asked him what are his thoughts on it and this was the reply:
Right now (stock) is making lower highs, yesterday and today supported at where 10MA and 20MA meets on daily chart. And it’s making a wedge pattern.
I was thinking: He knows his stuff. What’s his real question?
So, I asked him if he has to make a decision to long or short this stock right now, what would it be? He told me he would go short. I looked at the figures and thought that he could be right and since it is in agreement with my plan, I decided to put some skin in.
I sent him this picture to show that I take action when it makes sense. After all, investment is a very practical thing, and not just a theory. One day later, I closed the position after the stock price dropped quickly in a very short time. I covered at $190.01 with $2.15 fee. The net gain was $45.10 which is a 2.31% return in a day.
#finlitwithdavid Prices can go up or down for various reasons
Relevant links
Tiger Brokers promo code (get free L2 trading data for 30 days, free commission for 1 order and up to S$100 stock voucher depending on how much you fund. Fund S$10001 to get S$70 or S$30001 to get S$100): https://www.tigersecurities.com/accounts/signup?region=SGP&lang=en_US&invite=PWJEDI
Telegram chat: https://t.me/joinchat/PmAf81XgBPzqd4a0LmBnmA
If you enjoy my writing, do give me a “clap” and reach out to me if you have any questions. I can be easily contacted via Facebook, send me a DM.