August 2020 Report - FOMO all the way

 

I think this meme sums up the performance of S&P 500 for the month of August very aptly 😂.

As the index keep climbing up, breaking All Time High again and again, more and more retail investors started jumping in because FOMO, Pretty much a blind monkey can make money buying almost any of the blue chip or those Hype stocks. Apple and Tesla especially was going🚀🚀🚀 with the announced stock split. 

Quite proud that i am able to resist FOMO and jumping into the bandwagon. Discipline! very important in investing/ Trading. Besides only 5 red days for the whole of August! You know a correction will come sooner or later, you just don't know how bad it is going to be.

(Update: the drop just starting to happen on 3rd Sept! As i am writing this report)

Anyways how did my portfolio do in August?👇

August Portfolio performance

Not bad right? Double the S&P500!! i thought i did very well, until i found out my investing buddy managed a 30% return in August! 👀 (I really need to learn more about options from him.)

 Let's take a closer look.

Value Stock : 20.26% vs 7%

Most of the value stocks i am holding started rocketing up together with the Index with the Tech stock leading the charge. And my portfolio is very tech heavy, i really need to rebalance soon, quite sure when the correction happen i am going to be hit quite badly.

(3rd Sept Update: the correction happened! S&P 500 Dropped 3.5%, and my portfolio dropped 7+% 😅)

Swing Trade : 1.69% vs 7%

My Swing trade did very badly this month. Despite the market being mostly green, i just couldn't get any good stock picks that hit my profit target. My picks were just going sideway. Very dissapointing, considering S&P is super bullish this month.

Options :  -0.49% vs 7%

Options was worse! Still struggling with options, almost all my options setup will go against me. Really frustrating this one, still can't figure out a good play. Then again, my Options play are very limited due to the account size so some of my blue chips options are mixed with my value stock account. I recall MSFT calendar spread doing very well there.

The big rise in value stock is the sole reason my portfolio jumped up, and i didn't even add any positions because everything i am interested in was way overvalued. Swing trade and options underperform quite badly this month.

YTD Performance

Data since i started investing, Portfolio finally gaining on index, but still lagging behind by about 4%.

My Value stocks really rocket up this month.

Swing trade is just going sideway, and again options is horrible.

Overall quite happy with this month's performance, September and October is expected to be bearish plus with US election coming up. So quite fearful of the next correction which i assume would be a big one. But mindset is slowly changing, considering i am holding good companies, a big drop in the market will simply means i can go on a shopping spree, then ride the trend back up when the market rebound like this August. Must make sure i still have some cash ready to buy.