November 2020 Report - Someone just got TRASHED!

 

Whoops this report is very late. Things are just a little too hectic lately.

Well. I've been seeing a lot of bad news and hearing warnings as I entered November 
"Market going to crash after election! HOLD CASH!!", 
"COVID OUTBREAK! US record number of cases!! Market will go crash like back in March! HOLD CASH!!"

🙈🙉🙊 Whatever, I'll just stick to my investing plans. Stocks in my watchlist undervalued? BUY. Bad news! high number of cases! BUY. 

S&P500 in November 2020

So How did the index do in November? Before the election was even over it started its run up, then Trump started making noise so they said, "Oh no, Trump going to contest the result, This gain is not going to last, market is going to be volatile, it is going to go back down!" and those retail investors remain on the sideline.

What happens next is the market start it's run up gaining 10% and continue climbing to its All time High. Only now that retail investors start to FOMO and jump back into the market.

So if you've read my October report, Oct Part 1 and Oct Part 2, You know that I held through the choppy October market, and even buy into more stocks as price plunge during the election scare. How did I do in November? Well someone just got trashed, and that someone is S&P500! 😝

NOVEMBER 2020 Performance

Yeeep I am as surprised as you! For the first time ever, I've gain clear victory from the Index for this month. Almost double the gain from 19.56% vs 10.74%

Taking a closer look

Value Stocks: 22.27% vs 10.74% (S&P500)

My Value stocks climbed sharply as I've loaded on more stocks as the market drop end October. I have also combined more options play on those strong undervalued stocks using Diagonal Spreads (my current favourite strategy) to leverage my position. So yeah this account is no longer just buy and sell, incorporating options play has really boosted my returns. Special thanks to my investing buddy JK for exposing me to the potential of options (Last I heard he is up like 40+% YTD 😲, Probably he will add another 10~20% by end year)

Swing Trade: -1.06% vs 10.74% (S&P500)

My swing trades continue to perform badly. Nope no winning trades, I've taken into some position but those has only been going sideway. And that is VERY BAD considering how the index has been rallying this month. I have actually been losing interest on doing swing trade, not being able to pick up winners kind of discouraged me. I am still at 24 consecutive loss as per last month, so no progress here.

 

Options: +26.64% vs 10.74% (S&P500)

My current options strategy continues to work well so far, earning consistently mostly from high probability credit bull spread. That means selling put at strike price with low delta (<0.2) with 30-40 days to expiry, and then buy another put to cover at lower strike price at the same expiry. 

Options is partly why I am losing interest with my swing trade, as I spend more time on this. Reason being the odds are better. For my bull spread strategy, I will earn money if the stock market go up or go sideway. I will only lose money if the stock drop below my strike price. 

Also started a new strategy "Snipex" I just learnt recently, will see how this one pan out near expiry on 18th December, as long as the index doesn't have sudden large movement (up or down) this one should give decent return.

If you have grasped the basics of stock market, go learn options! It is very useful! But be careful! it is a double edged sword, use it wisely.

 

 

YTD report 2020 (S&P500 since April2020)

After that horrid dip back in end Oct, I've rebounded quite strongly to hit an all time high and getting closer to beating S&P500. Just one final month of 2020, we'll see if I can get the upper hand over the index before the year close. Look forward to Q4 2020 report! It will be interesting to see which investing strategies come up on top.

Remember Ferry is not a licenced financial advisor so do you your own due diligence! Provided data are purely based on historical records and may not guarantee future results. Follow my methods at your own Risk!