Bought DBS and OCBC today! How I hedge my bets!

Bought in few hundred shares each of [email protected] & [email protected]
Scenario – Technical Rebound
Not that I am bullish about banks now, but for reasons of
speculative trading and hoping for a technical rebound after I think banks were
truly oversold since the start of the year. This period also see the local
three banks go below their book values, which is unheard of even during the
GFC. Need to set sell price though in case there are truly rebounds up in pricing. I shall let
you to decide on your own sell price! J
Scenario – Plunge further down
Don’t get me wrong, I still have lots of faith about
Singapore banks in the long term, but just that I am not too sure if taking a
long time view now about our banks NOW is the correct timing. Ok, Warren Buffett
says you cannot time the market. Duh L!
Well, in case my speculation is wrong and markets are to
tank further down, and my bank stocks tumbles in tandem, then the second layer
of safety for me is not overly committed in this purchase with reference
to my entire position. And yet still in a manner, which I am still comfortable to
average down later. When? I left this difficult question for you to ponder for yourself.
Rolf’s hedge against
both scenarios
The thing about investing is you are never certain to be
right all the times even if you are value investors Warren Buffett and Peter
Lynch, or famous hedge fund managers George Soros and Ray Dalio.
The most important thing for average investor like me is to
be right for most of the time. Perhaps 7 out of 10 is great, or even 6 out of
10 is good. 8 out of 10 is definitely a bonus.
And even if I am wrong, I should already have a prior
strategy what should I do next. The whole idea is to be in control in your
positions and emotions, despite the violent swings in the market.

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7 thoughts on “Bought DBS and OCBC today! How I hedge my bets!

  1. Nice, another great sale today with China tanking another 6%. I expect to inject considerable amount of fresh fund after my bonus in March, and I hope STI stay low till then :-). I really don't mind buying below 2500.

    1. Hi Yaruzi,

      oh no… how come no rebound? €£>&£#%!!!

      I was so busy in work today and miss out on the China tanking news today.

      Anyway, I hope u manage to pick up some value for money sale items that are most suitable for u!

  2. Hi Rolf

    More nibbling now and implementing strategies.

    Busy is better so that we are not fixated onto the screen all the time. The strategy just needs to be executed when the time comes isn't it 😀

    1. Hi B,

      Yes you are right.

      The creation of strategy is done much earlier and now is execution phase. 😀

      It is definitely easier this way, than to be caught in an unexpected situation like what happened in the start of the year now.

      I am extremely thankful to be able to enjoy a reasonably good position now despite the downturn. I see the same for you. God bless!

  3. Thanks for sharing. Always think DBS below $16 is a good buy.

    But i didnt go in this round. Have this niggling fear that there will be some non-performing loan bad news waiting to come out. I may miss the boat, i know. but that's life, right?

  4. Hi Seefei,

    U r welcome and thanks for reading.

    I am align as u wrt the NPL. It is not just brewing but already happened, as I already know having work in the industry that suffers since past one year.

    Nonetheless, you can never be VERY right! Since the market n the world today is so crazily unpredictable. Therefore, you need to hedge against your wrong (in the other direction) so that in case u r wrong, ur action still can be suitable for "all weathers!"

    But manage your hedging bets to reasonable amt. I bought few hundred shares each for the two banks only.

    Now DBS is below $14! haha… what you think?

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