September 2020 Report - My profits got wiped out


How September Market went

As expected the pullback happened and September 2020 Has been quite a ride, 

S&P500 Closed September at close to -4%
S&P500 as of 2/10/2020

After making an all time high on 2nd September, the whole market started nose diving, and  bounce around before eventually breaking below the MA50. It then found support near 3200 before going back up. We did managed to close above MA50 by end of Sept, which means the correction may be over. And then Trump kena COVID (2nd Oct) and the whole market over-react and took a dip below MA50 again.

September 2020 Performance





See what I mean when I said the market has been very choppy  for me? 

Value Stocks: -5.62% vs -3.91% (S&P500)

After clocking best performance so far in August, my value stocks dip much further than index, losing as much as -14%. Although it has been somewhat frustrating to see the profits fly away, I got excited with some stocks going way below their fair value, giving me opportunity to load up more. I pretty much went on a shopping spree. Added positions on MSFT, BABA, AMZN, BAC. i am still a little miffed I missed out on ILMN because I was to stingy and set my limit order too low, didn't touch my order and flew back up 20% . Totally missed the boat on that one.

Coming to the end of the month, my value stocks portfolio increased sharply as the market started to recover, thanks to my added position at good prices.

Swing Trade: -9.69% vs -3.91%

Entering September, all my short term trade position hits my Stop loss resulting in a very sharp drop. With the market unpredictability, I decided to totally stop my swing trades by mid September. I closed the month with a total of -10R with a 100% loss rate. whenever I try to open a trade, it was like Green for 1-2 days and then it reverses back hitting my stop loss.

Lesson learnt, should never try to force a trade. Not trading is also doing something by protecting your capital



Options: -10.61% vs -3.91%

My options loss continues into September as some of the options play are still running and continue to bleed money. Further look into my strategy seems to reveal that I have been focusing too much on risk:reward ratio at the expense of my winning probability. Started taking more conservative approach and managed to recover a bit by the end of the month.
I've signed up for an Option course at great discount thanks to a friend. Time to re-strategise and hopefully one day I can match his performance!


YTD Report

*S&P500 YTD is based on Index at the time I start trading


Sadly, my gap with the index is getting larger. Currently my Portfolio is still too tech heavy and very vulnerable to major movement my beta against the index is almost double.

Overall, there are still a lot of  room for improvements, I have been volunteering as coach to help out with Adam's wealth academy online classes and have learnt a lot of new things. I am now more confident about valuating a company, what to look out for, and  what method to use for the different type of company. The fastest way to learn is definitely to teach!

Going through the September market movement has further reaffirm my conviction to not try and time the market. I now get excited when market takes a nose dive as I can go on a shopping spree, buying great companies at a discount. To read when market drop



What's Next

With the election drawing nearer, market is expected to be even more volatile. Might be a good time to hedge using VIX. It is fine if the market dip a bit further down so I can load up more, and then ride the End of year bullish wave up, but I am running out of bullet though 😅,



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