To The Moon

@Terra Incognita, a holder of a Master of Science in Supply Chain Management, working on Audit, Quality, and Procurement for semiconductor companies. 2023 was his best performing year to date, with RoR > 60% and most of the profits were through consistently selling options.

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Please briefly introduce yourself and share your personal investment growth experience.

Hello fellow Tigers, may all your trades bring you rewarding outcomes. I'm Terra Incognita, in my 40s and my family welcomed a baby in 2023. My day job is in the semiconductor industry so I tend to trade more on semiconductor related companies to capitalize on professional knowledge.

I started trading Singapore stocks, mostly REITs and selected dividend counters in the 2000s and invested passively till 2020. I added US market exposure to my portfolio in recent years when brokers like Tiger introduced lower trading fees and improved accessibility to trading US and other major markets. 2023 was my best performing year to date, with RoR > 60% and most of those profits were through consistently selling cash secured put and covered call options.

As a professional in the semiconductor industry, what are your views on the future of the semiconductor industry?

The future is really bright for semiconductor industry but it is also a cyclical industry with its own good and bad times. It forms the backbone for most technological breakthroughs. From EVs, mobile & communications, automatives, gaming, internet of things, space & defense and most recently crypto mining and AI. There are a handful of semiconductor companies within the supply chain that the world can’t live without, diverse choices from equipment makers, manufacturers, IC designers, raw materials and specialty chemicals. We just have to be able to find those companies and wait for opportunities to enter at the right valuations which right now is really richly valued for most.

Why did you choose options as your main trading category?

I began to earnestly expand on investing knowledge with value investing, technical analysis, futures, forex and currently mostly US stocks and US options. I found that for me, the US market and options give me optimal profit returns based on the amount of invested capital and the amount of time needed to research those trade ideas. Selected options strategies are also more forgiving even for beginner traders and those trades would still earn you profits even if the stock goes the opposite direction against your trade idea. Options also allow efficient capital allocation and enable traders to make profits on both bull and bear markets as compared to traditional buy and hold strategy.

What is the most impressive investment experience you have had?

TIME is the ever constant in our life and the realization that time is also your best friend as an options seller. There are many ways the market could be influenced on any particular trading period but the time decay in options works in the option sellers favor. Utilizing time decay in options, I gained most of my trading profits simply by waiting for contracts to expire and then sell new ones to rinse and repeat the process.

How do you select stocks and control risks?

I adopted a few risk control strategies to hopefully help reduce the drawdown in the event the market turned against my trades.

1) Using a value investing method to back up the research, I mostly sell cash secured put options on fundamentally good companies and below its intrinsic value so that I can either purchase those stocks lower than current market price or collect all the premium if the price didn't drop to the target price. If stocks get assigned, I will then sell covered calls against those stocks to collect premium as well.

2) I try to balance the amount of open trades I had for sell puts and sell calls on a weekly basis so that my net exposure to very bullish or very bearish markets could be more balanced.

3) Each trade I commit is less than 2% of my portfolio with exception of Cash secured puts as I need to ensure I have the cash ready should I get assigned.

4) From the beginning of 2024, I added technical analysis and chose to buy long or short stocks directly. For those trades, I try to maintain an equal amount of long and short trades.

What is your follow-up trading plan? What are the key directions you pay attention to?

On a daily basis, I review the previous day's performance after market close and input my trades in the trading log. I note down open trades that need adjustments as high priority and then search for additional trade ideas based on the amount of available capital and allocate them to suitable trade ideas. Around 1 hour before the market opens, I observe the pre-market and watch trading related videos on market outlook to get a general view.

On the weekends, I tally up my profits or losses and make new plans for the coming weeks, making adjustments to balance the amount of long and short trades.

(Since the opening of Trade Feed, Terra Incognita has shared a total of 300+ trades, the highest in the entire community, and these have earned him over 400 subscribers 👍)

With such a high trading frequency, how much time will it take up in your daily life? How do you balance life and investment?

I start preparing from 1 hour before market open on most nights and trade maybe up to 1am. Most trades were already planned and setup pre market and when market opens, I observe for 30 mins for market direction then enter the suitable trades. For those trade ideas I haven’t executed, I keep as watchlist until the trade became suitable. I search mostly trades that I’m already familiar and entered before, therefore unless a key event materially change the fundamentals of the company, the trade entries were relatively fast and efficient using Tiger App on my mobile.

If you were to use one sentence as a slogan to get people to subscribe to your Trade Feed account, what would it be?

It's emotionally hard to open up our own trades and be subjected to public opinions on our trading performance, so subscribe to Trade Feed members that resonate with your trading philosophy, encourage us by sending chat messages, 'Like' those Trade Feed posts, and hope we all can find the trades we could profit consistently together in this Tiger community.

Glad to be investing together and sharing trade ideas with like-minded Tigers.

Thank @Terra Incognita for the fantastic sharing! If you're eager to know about his latest live trading actions, make sure to subscribe to his real-time updates! (Click here to view>>)

(A special note: Every order shared by Terra Incognita comes with very detailed reasoning, providing valuable assistance for your investment decisions! [Miser])

Now, here's the [Rewards] section:

What questions do you have for @Terra Incognita? Post a screenshot of your subscription to him, and leave your questions in the comments section.

If @Terra Incognita answers your question, you'll be given 50 Tiger Coins as a reward! [Allin][Allin][Allin]

([USD] NOTES: Don’t forget to subscribe to him first to get eligible!)

(Coins will be sent to you within 10 working days after your comments gets answered)

Finally, here are the interviews with other Trade Feed star investors, take a look if you’re interested:

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[Trade Feed] @Bonta: Accumulate $40,000 from BABA! How to be chill in investing?