My Stock Market Ride: Late Update

What happened to my foolish investment? (Read: My Stock Market Ride: A Foolish Investment)

Well, I sold it off and even made a few dollars out of the transaction. Most importantly, I did get back all of my invested capital besides the extras.

So, what will I be doing with all my cash now?

Until prices become much more attractive, I will be happily waiting with my stash. 

"Rule No.1: Never lose money. Rule No.2: Never forget Rule No.1" - Warren Buffet 

My Stock Market Ride: A Foolish Investment

What would you do if you had foolishly "Buy High"? 

Well, I had purchased two lots of NeraTel at a very unattractive price in terms of my standard back in May. It was only my second stock purchase and definitely a foolish one. What am I going to do about this? Honestly, I'm not sure and have been thinking about it for quite a while.

1. The purchase price was very high and it was near the 52-week peak. Clearly, I did not have a margin of safety. A small correction can make me bleed for a little while, that's for sure.
   
   
2. Generally, the market is rather high and uncertain at the moment. A market correction in the near future seems to be expected by many, including myself. A major correction would definitely "kill" me.
   

My position in NeraTel.

Here's a confession, I did not put in much effort back then to determine the price that I would be comfortable paying for NeraTel. This was unlike my purchase of SATS where I did a lot of research. Fortunately for me, I have received dividends amounting to a total of $120 from this foolish purchase. I hope I will figure out something soon with regards to this "Buy High" issue.

Anyway, for those who are wondering why would I be worried about a market correction? Well, in this case, it is a double-edge sword for me. Being a student, my investment capital is limited. If I were to purchase more lots of NeraTel during a correction, it would mean having less capital for other opportunities. Hope that would answer your question.


Regards
The Frugal Mat

My Stock Market Ride: Brokerage Account

Having shared about my first stock purchase previously, I will now share a little about the brokerage account that I opted for. Initially, I wanted to open an account with Standard Chartered as they do not charge minimum commission on transactions. It was very attractive for a student like me as it could keep my costs low. However, I decided to give them a miss to avoid disappointment as I doubt that my application will be approved due to their requirements.

Eventually, I came across the Young Investor Programme Account by OCBC and decided to sign up for it. Besides the fact that it was convenient as I had placed my investment fund in an OCBC Frank account, what attracted me was the $50 trade commission rebate offered for the first trade made. Being frugal, having this account for my very first stock purchase was a no-brainer.

source: www.iocbc.com

For those who meet the eligibility requirement, you might want to consider signing up for this account. However, do take note that the trade commission rebate is a promotion and not a privilege. For more informaton on the account and promotion, kindly visit www.iocbc.com.


Regards
The Frugal Mat

My Stock Market Ride: The Beginning

As someone who is relatively new to investing, I only started dabbling in equities(stocks/shares etc) in mid-January 2014. With a portion of my savings, I bought my first stock, SATS, at a unit price of $3.08. It would have been Singtel but due to my eagerness to enter the market, I just went for whatever that was cheaper. A little regret now, lol.  

Anyway, as it was sort of a big deal to me back then to be investing, I remembered looking up on the internet to learn as much as I can about SATS for at least a few months since late-2013. Prior to my research, I was aware that they are the one providing the passenger services at the airport. Upon researching, I discovered that they do so much more than that. I then became much more interested in their business, especially with words about a new terminal at the airport. That would clearly translate into more business for SATS in the future. And with that, I made up my mind. Being a noob, I based my entry price on the 52-week price range. Seeing that $3.08 was "good enough" for me, I made the queue(during my lunch break in school).

Being a newcomer, it was a quite an enriching experience to have my money in stocks and not in the "safety" of the bank. Seeing and feeling what it was like to have the value of my stock dropped a day after the purchase was quite daunting. It then went to stay lower for the next few months. Eventually, I learnt not to bother with the fluctuation of price.

Some time later in May, I realised that SATS was just not the business that I would want to be in at the point of time. I then divested my holdings and channelled the small profit to my investment fund. By pure luck I must say, that I managed to make a profit. It just happened that SATS was trading at a good price when I decided to exit.

As you can see, being invested is very simple. But of course, it requires some effort to determine your fate at it. As a newcomer, it took me months of reading forums, sites, blogs, news before making my purchase. I could have bought a bad business unknowingly if I had not done so. 

Anyway, I hope what I had shared would motivate and interest others to pick up investing as well.


Regards
The Frugal Mat