Rare dip

When it comes to shares, I invest in those that provide dividends regularly. Yes, I hold them for the medium to long term and sell only if the company's fundamentals turn sour and expected to be bad in the medium to long term. I don't do short-term trading.

Now, I am still not good at doing such research. I rely mostly on research done by other people. I read what they present and judge for myself whether it makes sense or not. Then I'll add the share counter in my watch list and buy them when the market dips.

However, waiting for dips requires lots of patience. I was fortunate to start investing only in late 2009 when the world was still recovering from the Great Financial Crisis ("GFC"). Next dip was during the advent of the European banking and sovereign debt crisis. After that, it was the downgrade of US credit rating by S&P. Each time, I took the opportunity to either add more to my existing shares I owned or to initiate a position in another share counter or both.

The most recent opportunity was immediately after the comment made by US Federal Reserve's chairman Ben Bernanke about the possibility of withdrawing the monetary stimuli as early as Sep this year. I added more SP Ausnet shares and initiated position in Kingsmen Creatives.

Was I nervous? Of course. I cannot be sure whether the market would continually drop or bounce back shortly after the dip. That's why generally I don't invest a huge sum of money at one go. If it drops further significantly, I'll invest a little more. If it rebounds, then it's good news for I have invested some.
4 Responses
  1. Ash Godiva Says:

    hi,1st time here...how about ipo?

  2. Jaded Jeremy Says:

    Ash Godiva,
    I generally stay away from IPO because I wouldn't know enough of the company before it goes public. A private company doesn't publish annual report publicly and so there wouldn't be research done etc. I do not believe wholesale whatever marketing pitch that comes along with IPO.

  3. Anonymous Says:

    A friend of mine just lost a year's saving to day trading. Ouch! sr

  4. Jaded Jeremy Says:

    Oh my...that's bad.