Sunday, 8 July 2018

STI ETF, to buy or not yet?

On Friday, 6th July 2018, the STI ETF fell to a low of $3.23 breaking its 52 weeks low. When I saw this, I did get tempted to invest in it. Itchy fingers but currently, I am still building up on my war chest and definitely I’m not gonna touch my savings to buy so I will need to control myself.

During the month of May, I made 2 transactions namely buying SGX and Singtel. Boy, both of this stocks have fallen since then and Singtel broke its 52 weeks low but is now back on track.


Read more: Portfolio updates (MAY 2018): 2 buy transactions




I have realized that the stock market is really unpredictable. It is like a test of patience like if I had hold on a bit longer before making my May transactions, I could have gotten a better deal but it is also a test of emotions. Just when you think prices are low, they can go even lower than you expect. There is no way you can really catch the bottom. But if you have done your due diligence and know the value of the company, buy in at the right price and hopefully everything goes well, haha.




With prices breaking the 52 week low, it looks attractive but no one knows what direction it will go next. I should focus more on income building and to build up my war chest to be able to deploy the funds when needed. Currently, I would take on more of an observer stand unless I can't stand the temptation and deploy my small amount of war chest left. Half a year to go for 2018 and definitely an exciting one ahead!

4 comments:

  1. Hey,

    Really been a roller coaster ride these few months. I'm also in the same situation, fingers feeling itchy to buy into the downtrend yet need to build up my warchest. Still a lot to learn about patience!

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  2. 99% of people are looking too closely at the markets.

    For etf just need to check price once a month, yup 12X a year.

    If price above 200d moving average, hold or buy.

    If price below 200d moving average, sell & hold cash.

    U call up a chart over last 20 years & backtest.

    ReplyDelete
  3. A stock is for holding long-term, especially the sti. We re looking at 15-20years and beyond. No point worrying about a few cents. Doesn't matter. Like the guy said, rebalance once a year and keep putting money in.

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  4. The key learning point here is how to manage your emotions when you see the prices fluctuating. It is always easier said than done. Even after a few years, I'm still learning on emotions. Oh, it gets harder when your portfolio becomes bigger too because the damage is higher.

    ReplyDelete