I am currently holding a few lots of ST Engineering and I'm down by 3-4%. I was thinking if I should sell it off and start trading in the US stock market for quick growth. Need some views, thanks? - Seedly
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Anonymous

Asked on 24 Sep 2020

I am currently holding a few lots of ST Engineering and I'm down by 3-4%. I was thinking if I should sell it off and start trading in the US stock market for quick growth. Need some views, thanks?

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Deedee

Level 5. Genius

Answered on 25 Sep 2020

Agreed with Maisul, US stocks have higher volatility. If you can't stomach 4% paper loss, how are you going to stomach even 10% paper loss?

No such thing as quick growth in investments unless you do your own active trading to try to buy low, sell high :) which is why people always advocate at least 5 years in the market to ride out waves

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Don't be mad lah...

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Hi there, it depends on the fundamental reasons you went into ST Engineering in the first place.

Singapore stock imo has nvr been great for capital returns, the only reason to me logically would be for dividends if you compare to US. If that has not changed, neither should your investing decision.

However, if you want to go for capital gains, taking a lost and pumping the money into something with higher capit gains can be more beneficial than waiting for a loss to break even...

There are huge opportunity costs to that. Sometimes accepting a loss and quickly building back up is a much better decision rather than trying to keep a clean record.

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If you see no point in holding STE, by all means sell and purchase US stocks. However, it will take at least a few years for growth to come. It wont be buy today and eg 50% increase over the next few months. The best timing was in March and I doubt markets will go back to that state but who knows? I dk why you bought STE in the first place but be prepared to see up till 3/4 times of downs in the US market. Don't fomo, panic sell and think of the long term.

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Daniel Kok

Daniel Kok

Level 6. Master

Answered on 25 Sep 2020

Understand that you are aiming for quick growths from US stocks but an impt question is if you are able to accept quick losses as well.

No one can guarantee you returns.

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Think 3-4% is considered pretty low.US stocks are more volatile in my personal opinion. The moves on SG stocks are not as violent as US.

So probably best to ask if you are ready to take on volatility and you can stocmach losses and just ignore the noise and focus on the long term prospects, only then I would suggest you can switch over to US.

Just my opinion! Im no financial advisor :)

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