Wednesday, February 21, 2018

My Experience Of Investing In HK and US Market

If you had read my blog regularly, you will have read that I have been investing in HK and US market for about 1 year. Since the start of 2018, I started to engage in more active investing within the HK and US market. I even wrote a full post on a HK counter that I invested in, Win Hanverky Holdings Limited.

After investing for over 10 years in the SG market, I thought it will be “piece of cake” for me to just start investing in other markets. But I am wrong.

Since the start of the year, the Hang Seng Index and Dow Jones Index had rise about 1%. Without the short-lived market correction period, the 2 indexes will have risen more than 5% within 2 months.

However, I am currently in the red after 2 months.

My US portfolio went into the red 2 weeks ago. But my HK portfolio have been in the red more than 1 month ago.

Here are some thoughts that I like to share so far on my journey of investing in the HK and US market:

1. Higher Volatility in Price Fluctuations

The share prices in HK and US market are more reactive to related news, especially profit guidance.

2. Higher Liquidity

Liquidity also seems to be much higher too. For almost every counter, there will be shares traded on a daily basis and the spread between the buy and sell share prices are smaller.

3. More Vibrant Market

Since the HK and US counters have a higher volatility and liquidity, there is more participation from the investors in these 2 markets as well.

In view of the 3 pointers above, HK and US counters will rise much more than SG counters when there are positive news related to the counters. Similarly, the fall in share prices will be much more when negative news are reported on those HK and US counters.

An example is Cowell E Holdings Inc. As per the graph below, the share price took just 2 weeks to fall to below HK$2.1 and then rise back to HK$2.5. In fact, over this period of time, the changes in the share price could be up to 30% each day!

Screenshot Taken From IN
In Short

Firstly, do not over-estimate on your ability to invest, because Mr Market will always bring you back to reality.

Secondly, if you are not ready to see a fall of more than 30% in your portfolio, do not try to invest in these markets.

Thirdly, unless you will like to train your temperament, feel free to pay some school fees.

As of now, I am still holding on to Win Hanverky Holdings Limited. Its share price has dropped 20% recently due to a profit guidance.

Everyone is invited to come for our 2nd Face-to-Face Ask-Us-Anything session on 6 March 2018. Simple Investor SG and I will answer any of the questions you have on investing or our scorecard methods.

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

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