It is another year which I have remained invested with aggressive approach, putting all my money into the stock market. Through trading, I understand the greed and fear in me. There was a trade on ThaiBev which I took an leverage position which was beyond my comfort zone and the market went in the opposite direction. Furthermore, I was outstation in Vietnam during the transaction. I knew that I do not have the capability to buy the shares, it was just a trade and time was against me. I was terrified, selling my SGX shares to acquire the shares of ThaiBev.
I experienced a valuable lesson during the China market crash. I was monitoring CSOP A50 ETF 2822.HK when the euphoria sets in. All the aunties and uncles were buying the shares and suddenly the law of gravity kicks in. The shares were falling and I went to acquire a falling dagger, hoping that it will bounce back up. I acquired with every drop in 10% until I ran out of ammunition. Then I tried to sell whenever it recovered more than each drop. Thankfully, I made slight profit from this. The lesson learnt is you can never buy in exactly at the bottom. I believe in discipline in investing as well and you need to have the vision to believe in what you are doing is right.
I was naive as well, listening to my stockbroker that the stocks will forever go up. His advise was to add more to the holdings. Nevertheless, the PE and valuation of the shares in Singapore is low. Now I believe that when I do my own homework and I am convinced of the business, I will not regret or blame others. I will blame myself only. I studied the financial statements of Prada 1913.HK and convinced to acquire the shares at $33 and subsequently at $30. Currently, the share price of Prada is $23.95.
My current dividend income from my portfolio is a total of S$17,425 as seen below.
Currently, I only have this path of passive income. I need to create multiple sources of income.
The path to financial freedom is amidst lots of challenges and I forecast that a passive income of S$100,000 per year is required for the family to achieve financial freedom. Probably, I need to scrutinize and reduce the expense drastically to achieve financial freedom earlier in life. Probably to live simply.