2018 Investment Reflection

2018 might come to the end in a few days time but it is the year when I as a 18 year old teenager started investing. I celebrate my birthday on every 1st Jan. While everyone was sending “Happy New Year” message to their friends, I was preparing my trading account application, CDP account application and POSB InvestSaver application.

I got to know Monthly Investment Plan on Shiny Things threadwhen I was 17. Even though I did not read all the replies, some kind soul on Reddit sent me a soft copy of his book. After finished reading the E-Book, I was determined that the first few things I will do when I turn legal on 1 Jan 2018 is to sign up for Monthly Investment Plan!

Before 2018 really came, I had already planned to start investing regularly (aka monthly investment plan). I decided to open a MayBank Kim Eng Prefunded Account to buy STI ETF (ES3) with their Monthly Investment Plan product. The reason why MayBank Kim Eng was chosen instead of POSB InvestSaver is because the expense ratio for ES3 is slightly lower than G3B (POSB InvestSaver). After doing more research, I found out that POSB InvestSaver had promotion on its fee charges. Therefore, I went ahead with POSB InvestSaver. POSB InvestSaver had promotion for buying 0.82% charges for G3B and 0.5% charges for A35. It is a no brainer that POSB InvestSaver was chosen despite the slightly higher expense ratio for G3B instead because I will be paying less in the long run.

I also created my own CDP account in January for the purpose of purchasing Singapore Savings Bond when it was 1.55% for the first year. Why did I not buy into that 1.55% SSB issue? OCBC Bank made a mistake in my DCS application. This was because OCBC did not cater T prefix into their system thus my DCS application failed. I should have used my POSB account for the application instead…

Just a few days or so after my DCS application was first rejected, MayBank Kim Eng sent an E-Mail stating that my trading account has been created and approved. I got so excited that the capital that was meant for the 1.55% SSB was injected into the account. That’s how I started investing in Singtel in January 2018.

Mistake made: I invested in Singtel without knowing why the share price drop to a 52 week low back then. To be very honest, I was too busy with my studies in 2017 that I did not know what happened in the market. It was only after a few months I am in the market then I realise why Singtel fell further.

In Feburary, I sold Singtel at a loss to punt for Creative when its share price rose from $1.XX to about $10. Feeling disappointed about my loss in Singtel, I consulted some on Reddit to ask them whether should I be selling Singtel and try to earn back the losses from rising stock like Creative, Delong. I bought Creative on the same day I sold Singtel. I wanted to buy AEM but my order wasn’t filled. I didn’t know at that point in time, Creative was one of the top gainers until in the afternoon. If I reacted quickly, I would have made profit. So I boarded the Creative plane in the afternoon few minutes before it flew off. The feeling of buying into Creative was as if I am riding a roller coaster. At one point in time, I almost got $1.4k profit using just $3.7k capital. In the end, I settled with a $250+ profit which was only able to cover most of my losses selling Singtel. Creative was still in my watchlist and seeing her rise even further tempted me to re-enter once again. What made me think twice was because I actually got burn by Creative when I executed the second trade. However, the FOMO made me sell my Singtel shares once again and I failed to buy into Creative as I was scared that the bubble will burst after I buy. So, I bought back Singtel… What a dumb mistake. Eventually, I saw the fall of Creative from $10 to now $5.XX.

Lesson Learnt: Set aside an amount to punt and not to sell off your holdings to punt for a stock that might go against what you expect. If one wants to punt, one must have the courage to execute it. That being said, one should have a stop loss so that the loss can be contained to a certain level that one is comfortable to lose.

The last time I sold Singtel was March and I have not sold her ever since. I had a chance to sell Singtel in May before her FY result but I did not execute because I was greedy and I still want a taste of her dividend. Back then in May, I was still bullish in Singtel and I was still expecting the share price to rise up eventually. From a profit of close to $150 it went down to a loss of close to $500, I am holding Singtel until it break even which I don’t even know when it will happen. Singtel can be described as someone who you give him many chances but always fail to deliver.

Lesson Learnt: One should sell a bearish stock if the stock gives an opportunity to sell at a profit. Profit is profit. One will not own a bearish stock if he/she has done extensive research.  

I bought my second bond – Temasek 2.7% Bond in October. In October, I had about $4.4k+ in my Savings account and $4k+ in my Investment account. The reason why I bought the bond with my savings is because it was sitting in CIMB FastSaver account and earning 1% interest per annum so why not buy into the bond that gives me 2.7% yield per annum? Knowing that Temasek which has a Triple A credit rating is going to guarantee the bond, I know that I will sleep tightly at night. I was contemplating whether to go all in at $4000 or just $3000. It is important to have liquid cash in my bank account so proceed to buy the Bond with 75% of my Savings amount. Disclaimer: I don’t usually spend my savings and I have a spending amount.

I always wanted to own a REIT such as CapitaMall Trust, Frasers Centrepoint Trust and Mapletree Commercial Trust but I only bought REITS in November. The REITS I bought was not in my watchlist (even before my research). They are Frasers Logistics and Industrial Trust and Mapletree Logisitcs Trust. I forgot what made me type down my analysis but I feel that that’s better in the sense that I am responsible for my own purchase. I got inspired to write more after getting positive response from InvestingNote users. I guess that’s how I started my own financial blog.

2018 Portfolio Performance

Graph

  • Profit and Loss
    • $-275.83 (-2.42%)
  • Time Weighted Returns
    • -5.94% (Portfolio) vs -11.38% (ES3)
  • XIRR
    • -6.13% 😦
  • Dividends Collected
    • $192.5 (Singtel)

Transactions – I sold MLT and ABF Bond ETF

I sold Mapletree Logisitcs Trust and locked in 6.2% profit which is about 95% of projected FY2019 dividends. I intend to board again when it reaches near my first buying price though it might be impossible. Depending on how the market is going forward in 2019.

As stated earlier in this blog post, I bought A35 through POSB InvestSaver earlier this year. I sold all my holdings for a small profit. A35 was in the red for most of the months because firstly I bought it before it turned XD and due to rising interest rate causing the price to fall. The reason why I sold A35 is that I don’t see the need in investing in a bond ETF when one can invest in an actual bond like Temasek 2.7% Bond.

2 Comments Add yours

  1. Nice blog and thanks for sharing your 2018 investment experience with us. I see it as a learning curve for any trader today. I like this lesson especially –

    One should sell a bearish stock if the stock gives an opportunity to sell at a profit. Profit is profit. One will not own a bearish stock if he/she has done extensive research.

    Very well said. Researching is really important before trading in anything.

    Liked by 1 person

    1. Thanks for visiting my blog! I think it is very difficult to accept the fact that one sold a rising stock prematurely. I actually sold MLT prematurely ugh. Sold at $1.29 and now gone up to $1.40. Kinda heart pain to see this great reit go up.

      Never sell a golden goose unless it has terminal illness.

      Like

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