The target declined to 5.2% which was due to the renovation deposit paid, mark to market losses and trade mistake committed that I shall elaborate below. War chest dipped further as $6000 got allocated to SSB and 100 shares of DBS was purchased to take advantage of the market drop.
There's no bigger news in April than the tariffs. When it was first announced, markets crashed as expected. The reaction was stronger after US and China did a tit for tat of tariff increase. Two days before Trump fired the first salvo, I had entered a put option for Spotify where strike was 15% away from actual price. This did not factor in the tariff event. Against my expectation, the stock price declined way more. As such, I got assigned 100 shares over the weekend. Market volatility continued and it looked rather bleak on the Monday futures, predicting another 10% drop. So on market opening, I decided to cut loss. That amount negated all profits made this year and a bit more. At that moment, it felt a relief but the drama had not ended. Days later, the stock market shot up, presumably a dead cat bounce. From a losing position, I could have "made" a 10% gain instead! This has been a useful lesson for future reference. One, I have to be psychologically stronger to withstand huge market movements. Two, position sizing is crucial for risk management. On hindsight, I should have sold half and held on as I thought it was a good entry price. However, my conviction was weak. Three, be mindful of market irrationality. This trade was done with sufficient buffer (what I thought) but it proved otherwise. Four, ensure adequate reserves so as to sleep peacefully. I could stomach this loss as it's a small setback compared to overall portfolio size. Well, it's back to square one and I hope to pick up from here and improve my trading skill.
Dividends as of April 2025: $2315.62 (avg $578.90 per month)
Tip: Avantis Estate Falcons Hill Sauvignon Blanc 2022, citrus with light zest, slight floral, short finish but engaging
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