I guess with the year 2020 coming to a close, it is perhaps time for some reflection.
The main gist of this post as I looked back is probably what is the key investing moment for this year. Investing in stocks by itself is a rather mundane process, for me, it is basically logging into the laptop or my handphone and keying in the buy / sell price and pressing the confirmation button. Literally as interesting as watching the paint on the wall dry.
However, this being 2020, the year of the pandemic, many things are perhaps like what many would say – unprecedented. The moment is not really the most profitable trade. It was memorable for other reasons.
I always believed that the best time to buy / invest is when there is maximum fear. That is the theory part / belief, so to speak. Although, implementation is another ball game altogether.
And if I am to just list one event in Singapore when fear is high and when that particular trade was done in 2020, that would be during the live telecast of PM Lee’s remarks on the coronavirus situation, delivered on 3 Apr 2020.
PM Lee: the COVID-19 situation in Singapore (3 Apr) (click here)
Prior to the actual tel many people would rushed down to the nearest super-markets or provision stores to stock up on supplies. We too have a list of items for our families need, although toilet paper and rice wasn’t really in that list. Basically just some food for the family / kids to last for a few days. Wifey’s order.
So yeah, I headed to the Sheng Siong supermarket near my place. There I was with some food, waiting in line (a very very long queue), feeling that it was a complete waste of time, while mayhem was happening all around me – people jostling to grab what they can, ramming trolleys that were packed to the brim, in a place with no space for trolleys (narrow aisles packed full of people. This is Sheng Siong not Cold Storage), kids making lots of noise… Wondering what was all the fuss about.
In the live telecast of the PM Lee speech that day, it was mentioned that the government will be applying a circuit breaker.
Anyway, I can sense a lot of ‘fear’ in the air, and in the stock market. While queuing up I was also scrolling through my trading account on my handphone – It was literally full of red (blood bath).
Taking all this in, me in my office wear queuing up in a ridiculously long queue holding on to a shopping basket with like 6 items within, the mayhem around me, the red ‘blood bath’ on my handphone screen, the time (evening)… all these seem a tad too surreal for me.
I made a trade at that moment, and it was to purchase Mapletree Commercial Trust shares at the price of $1.50. It was strange as well: So great was the selling volume, that my order was filled immediately right after I clicked the buy button after trading hours (if I remember correctly).
Back in mind, I was thinking that if the trading algorithm has a soul, it would probably be laughing at me for being a fool who is so willing to part with his money.
It was not a huge amount, as I tend to break up my purchases over a period of time / days / months. I have no idea then if tomorrow or the week / month after prices will drop even lower.
On hindsight, it was the bottom for MCT share price this year – I reckon.
So literally while people was queuing up to buy food, I was ‘queuing’ up to buy stocks that people are dumping. Prior to and after this date I have also purchased some more MCT stocks.
So what is your most memorable trade for 2020? Do let me know in the comment section below.
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