Asked on 09 Mar 2020
Is this a viable option? what should I be considering?
Reflect and think about why you buy the 2 stocks above in the first place. If the fundamentals of the companies didn’t change, will you sell? Is the company still valuable at current price? Do you think the coronavirus will affect these companies in the long run?
Most importantly ask yourself if you’re investing or trading. If you’re trading it’s normal to cut loss but for long term dividend investing, it may be wise to sit still and do nothing , or some may prefer to buy more to average down since price is beaten down.
Personally I’m buying more of DBS when it dips, i believe DBS will recover, is just a matter of when. Meanwhile I can collect the dividends while waiting :)
It is all depending on your time frame. If you are long term, can just buy and hold. If you are trading then you need to have a short loss. When you are trading, you should already have a plan : when to enter, take profit and cut loss before you enter the trade.
Sell,, in this market tomorrow sure big selling, why not sell first and buy later cheaper and more? In a bear market, every good stock also got hit. Dont just sit there and get whack left and right. It will recover, but it is bottom, i do not think so
Go back to your investment objective. Reflect upon why you bought these shares in the first place.
Conduct fundamental analysis to determine whether these stocks will be able to help you achieve your investment objectives.
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Do you remember the reason why you own DBS and SATS in the first place? If you based on their fundamentals, I'm sure the fundamentals are still intact. There is no need to panic and sell if you are investing them for the long term and their dividends.
All investments are long term, if you are looking to cut the losses now due to the current situtation, I think you might want to consider safer investment instruments that suit your risk appetite.
If you believe in the fundamentals of the companies you invest in, you should not sell. Instead, average down. But of course, ensure that you do not overbuy, and keep some cash for other opportunities that may come!