Balance⚖️ is the Key🔑 to My Investing-Adapt to the Changing 🌎

Investing has changed a lot since technology & social media advanced-there’s no longer a clear direct relationship between a company’s fundamentals & it’s stock price.

⭐️ A company with strong fundamentals doesn’t necessarily have a high stock price & a company with poor fundamentals doesn’t necessarily have a low stock price. Classic example: Unpopular Value stocks VS Popular Meme stocks 🤷🏻‍♀️

⭐️ 2 companies with similar fundamentals can have very different stock prices as well😅

⭐️ The same company listed on different stock exchanges can have very different stock prices. Classic example: Piedmont Lithium is less than 1 AUD on the ASX🥳 BUT it’s USD 50-70+ in Nasdaq😨

⭐️ I’ve come to realise that as the 🌎 progresses, we need to adapt & grow along-Resisting to change is tiring & futile😅 This applies to investing as well🤓 To purely go by companies’ fundamentals & not use technical charts & market psychology to guide our investing is like choosing to trek water in the open seas after capsizing while waiting for the lifeboat to arrive & refusing to use the 🛟 in the meantime when it’s available😅 We should keep learning & adding new tools to our investment toolbox🧰 so that we get better results as the years go by💪💪💪

There’s always been 2 opposite investing camps-Value Investors VS Speculators

(1) Value investing is an investment strategy that involves picking stocks that appear to be trading for less than their intrinsic/book value.

➡️ Value investors actively ferret out stocks they think the stock market is underestimating. They believe the market overreacts to good & bad news, resulting in stock price movements that do not correspond to a company's long-term fundamentals. The overreaction offers an opportunity to profit by buying stocks at discounted prices. Warren Buffet is probably the best-known value investor today.

(2) Speculative trading refers to the act of conducting a financial transaction that has substantial risk of losing value but also holds the expectation of a significant gain or other major value. With speculation, the risk of loss is more than offset by the possibility of a substantial gain.

➡️ An investor who purchases a speculative investment is likely focused on price fluctuations. While the risk associated with the investment is high, the investor is typically more concerned about generating a profit based on market value changes for that investment than on long-term investing.

I started out being a value investor & my 1st stock was none other than our favourite blue chip $SINGTEL(Z74.SI)$Bought it at a good low price of $2.2🥳 I was stock-watching SG & US stocks for months & saw how other US stocks were jumping 10-30% while Singtel was moving slowlyyy & repeatedlyyy from 2.23-2.38 & I got bored 🥱😴 Subsequently the meme stock frenzy came along, & it was too fun to miss out so I decided to try speculative trading. I sold my Singtel & bought some meme stocks🤗🤗🤗

Did I make $ from Singtel❓Yes but it was 🥜

Did I make $ from meme stocks❓I initially made 💵 from $AMC Entertainment(AMC)$but after that I lost a lottt more from BlackBerry (BB), Workhorse (WKHS), Clover Health (CLOV), & Cenntro Electric (CENN)💸💸💸

After trying both extremes, this is what I found: Value investing protects my capital better🤓 but the returns are too little & too slowww for my liking…Speculative trading has a high risk of losing my capital with attractive returns🤩 but I don’t want to lose my capital😬 After that, I adopted a balanced approach⚖️ to my investing-Value Investing + Speculation (see photos) ➡️ This allows me to preserve my capital while using my profits to do speculative trading‼️At most I lose some profits, not my capital😉 As I haven’t started trading options yet, I allocate my capital as such:

⭐️ 20% Low Risk (Base Stability & Safety): SG stocks with about 5-7% dividend yields e.g. DBS/UOB/OCBC/Starhub/Golden Agri-Resources/Olam🤓 or US ETFs e.g. LIT

⭐️ 30% Low Risk (Mid Stability & Safety): Big Popular Tech e.g. AAPL🍎, GOOGL, QCOM or established pharmaceutical/Biotech PFE, BNTX, MRNA. I also started investing in ASX stocks so that I can choose blue chip stocks with higher dividend yields of 8-12% e.g. BHP🥳

⭐️ 20% Medium Risk: I use ASX high dividends stocks for my speculative trading/swing trades e.g. GRR 🤗

⭐️ 20% Higher Risk Speculation Stocks on EV & clean energy e.g. $Tesla Motors(TSLA)$SQM, PLL.AU, LTR.AU😉

⭐️ 10% Cash to buy the dip🙂

🤨 I don’t do meme stocks anymore though I did ponder about BBBY for awhile🤣 I don’t do crypto but I did buy Coinbase previously to invest indirectly in the crypto wave as it has 1 extra level of security-I can use crypto pricing to determine when to sell COIN.

❣️1 area I really haven’t grasped well is when to take profit😓 I am unwilling to sell at times as I bought the stock at a really good price & I’m concerned that I may not be able to get back that same good price later on…When I choose to keep it long-term, the price dips & I missed out on an opportunity to secure profits. Fellow 🐯🐯🐯 please share your tips &/or thoughts on this, need to learn from you🤓‼️

As usual-🤔💭 Consider POV & Actions of investors + 👩🏻‍💻👨🏻‍💻 Research + 🗑FOMO & Greed = Investing Wisely 🤓🤗 + Accumulating Wealth 💵💰

Source websites: Investopedia. 

@TigerStars@CaptainTiger@MillionaireTiger