How should I take advantage of the discounted stock prices in the market now? - Seedly
Seedly logo
Seedly logo
 

Investments

Stocks Discussion

Online Brokerages

COVID-19

Eman

Asked 3w ago

How should I take advantage of the discounted stock prices in the market now?

As a beginner investor with low capital ($500 to invest monthly) and already investing in an ETF, I’d like to know if constantly adding new individual stocks to my portfolio monthly OR instead focusing on monthly cost averaging just the 2 stocks I own currently would be the better option for me now?

0 comments

5 answers

Answer Now

Answers (5)

Sort By

Hi Eman,

I believe as long as it's a good stock, the number of stocks do not matter. The only concern will be the cost effectiveness since you will be making lots of transactions by keep adding new individual stocks. At the same time, you have to take note that you are not over committing on the stocks where your portfolio becomes thematic or imbalance.

2 comments

👍 1
Eman

3w ago

I see. So advice would also be too invest quarterly/half yearly instead of monthly?
Aidan Neo
Aidan Neo

3w ago

Depends on your capital build up and your per transaction amount. The lesser the frequency will be better!
ZT
Zachary Teo
Level 6. Master
Answered 3w ago

Hey Eman! As what everyone have mentioned below, $500 per month will chipped into your comission and transaction fees. I would suggest to keep it at quarterly investment or half a year. This way, you can get bigger quantity with lesser transaction fees. As what YJJ.lens have mentioned, the future of the stock market can be uncertain. So keep this amount to yourself now, cash is good in crisis time. Buy it on lumpsum instead.

5 comments

👍 0

3 more comments

Eman

3w ago

I’m assuming this is too mitigate transaction fees from eating up too much into my profits as compared to monthly $500?
Zachary Teo

2d ago

Yes that's right. Build your capital, reduce frequency to save on commission fees
Wilson Nid A Break
Wilson Nid A Break
Level 8. Wizard
Answered 3w ago

Better to invest every quarterly given the spare monthly cash you have at disposal. Those transaction fees will erode any returns you have if you nibble at $500 per month per stock.

1 comment

👍 0
Eman

3w ago

I see. However, I’d like to know if buying a stock quarterly or even half yearly erode the power of monthly dollar cost averaging/ value averaging?
Yh.lens
Yh.lens
Level 5. Genius
Answered 3w ago

With 500 to invest monthly, I would assume you have approx 3-4k to invest? In the current market (uncertainty, bearish sentiments, recession) you will do better if you lump sum in tranches during market lows. However, seeing that you only own 2 stocks, and with 3-4k (assumed), you would be better off investing into ETFs such as VOO, VTI or QQQ instead. STI ETF is not a wise choice but it'a okay to hold some. You may want to have bond position as well if you are more risk averse, so whatever you do, make sure it is an informed decision and not based on something said on the internet. Hence, please take this with a grain of salt and do your own due duiligience. I don't know (heck nobody) where the market will head in the next few months/years but the best thing to do right now is to stay invested and to hold for a long time.

8 comments

👍 0

6 more comments

Eman

3w ago

Really appreciate the help thus far! Will definitely be doing my due diligence on this thanks
Yh.lens
Yh.lens

3w ago

Welcome! All the best👌🏻
Frankie Aufhauser-Rappaport
Frankie Aufhauser-Rappaport
Top Contributor

Top Contributor (May)

Level 9. God of Wisdom
Updated 3w ago

When You have cash at hand now, it can be nice to invest given the drop down.

But generally even finance professional cannot predict anything on the future.

So, one care-free and better way of Investing would be to patiently and boringly keep

things simple:

https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy​​​

1 comment

👍 0
Frankie Aufhauser-Rappaport
Frankie Aufhauser-Rappaport

3w ago

Https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy