To The Moon

Glad that tiger mentioned about yearly review on our investing journey.

Sometimes we do get too caught by the action and the day to day movement that we doforget to do a review. 

Reviews of where we did wrong and where we did right, will improve our investing knowledge and understanding and sets foundation for subsequent years. 

2022 is an exciting Year, and for many younger investors, it's likely the first time they encounter the bear inside the bear's den, Instead of viewing the bear from a safe distance from history or hear say from other investors. 

I was pleasantly surprised by my portfolio results. Will split into options and stocks

Stocks wise, my portfolio comprises of undervalued dividend paying stocks. 

There were a few which became value traps like $AGL ENERGY LTD(AGL.AU)$ $Regis Resources Ltd(RRL.AU)$ $TELSTRA CORPORATION LIMITED.(TLS.AU)$ $SINGTEL(Z74.SI)$ Dividends were cut, which make them dead weight to my portfolio. 

My friend was encouraging me to take loss and to sell them off. I did the opposite.

I performed DCA, as I believed in their fundamentals and my research. In the end, besides SingTel, which is locking in Ard 15% paper loss excluding divdiends recieved. I managed to sell off Regis, Telstra and agl for 20-50% gain instead. 

Overall wise, portfolio is around -5%, excluding dividends return. Which is pleasantly surprising. 

I did see some posts about perharps time in the market is not as gd as it seems. I do have some comments.

To me, DCA should be done on stocks that are undervalued. I do not agree on just choosing 1 GOAT stock and just average regardless of value of stock. DCA when the stock is expensive is only going to worsen ur stock position And raises average prices. 

By doing DCA only when fundamentally strong stocks which are undervalued and allowing time to let the market fundamentals come through, so far works well for me Over all these years. 

2022 is a validation that my strategy does work even in bear markets. But then again, I dun usually care if my stock portfolio is up ordown as long as I recieve my dividends.[Cool] [Cool] [Cool] 

Let's go on to options.

Options wise, I mainly adopt selling call and put options for premiums, when I am directional. When I am not directional, I will sell strangles or straddles. 

Occasionally, I sell credit spreads or iron condors especially for earnings play. 

This year I started selling strangles/iron condors during earrings to capture volatility crush Post earnings. More hits than misses, butit's stressful and lately I didn't have that much time to monitor the markets so closely.Hence, will look into it again in 2023 when I have more time.

All in all, I am pleasantly Surprised by my options returns. It's Ard 3% returns per month,despite having crushed for 2 months. (Lost Ard 32k usd for the 2 months) 

I did self reflection on what went wrong for the 2 months of losses. I realised that:

1. my options portfolio was too concentrated. I had gotten greedy on $Alibaba(BABA)$ option premiums and portfolio weightage was80%. The premiums was simply too attractive and greed got to me.

2. Sold options in the opposite direction cancushion directional moves, but any directional moves of 30% and above, the positions will get whacked upside down. I thought that having strangles can reduce the risk of concentrated portfolio, boy Was I wrong.

during Alibaba sold down, my account was whacked until I lost sleep. Which reflects that I was in trouble.

Lesson learnt is that, options is like stocks. Diversification is important for portfolio longevity. [Facepalm] 

In conclusion, 2022 is a great year for validation for my stock strategy, VALUE INVESTING IS NOT DEAD! Gd luck to Cathie woods.

significant lessons are learnt in my options journey, and I shall continue to build on it in 2023.

All the best everyone and happy new year!