It takes conviction to buy a stock, but it takes courage, and some guts to acknowledge your mistake and do what is necessary, even if your heart has to break a little.
I have made the decision to cut my losses, and divested 27,000 shares of Indofood Agri at 25.5 cents each.
This has translated to a 30.9% loss of my initial investment of 37 cents, and in turn became a 6.44% realized loss off our entire portfolio.
I remember blogging about why I bought the stock in the first place, and here are the 3 points to justify my decision then: Continue reading “First Sell Trade – Divested Indofood Agri”
Two “disadvantages” of buying stocks that are not very popular are that…
- They are virtually illiquid (very low trading volume)
- The spread (bid/ask) price of the stock is immensely huge.
Unlike the famous stocks that people buy in the STI (e.g. Singtel), where the spread can be just 1 cent, stocks like Keong Hong and Tat Seng Packaging can drop a few percentage points in 1 day of trading.
Needless to say, the smaller (yet, maybe not cheaper) the price of the stock, each spread will also affect the price more. A mere 0.5 cent movement in the current price of Indofood Agri at 24.5 cents can cause a 2% change in your initial investment. Imagine that! Continue reading “May 2018 – Portfolio Updates”