facebookIs it possible to buy sti etf now at 2.3 then hold it for a few days and sell it when it reach 2.4? - Seedly

Anonymous

25 Mar 2020

Stocks

Is it possible to buy sti etf now at 2.3 then hold it for a few days and sell it when it reach 2.4?

I have always looked at sti etf as passive investing like just accumulate the units over prolonged time then sell it when I need the money next time. But now with the virus situation, hypothetically, is it wise to purchase for example 1000 units of sti etf for x price then sell it a few days later when it has marginal increment.

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Tan Kel Vin

25 Mar 2020

Financial YouTuber at Kelvin Learns Investing

Yes of course, in fact i used to have a strategy to trade STI ETF:

If you compare the the stock price to RSI (overbought/oversold) indicator,

  • whenever RSI shows above 70 (overbought) it will sell down most of the time

  • whenever RSI is below 30 (oversold) it will buy up most of the time.

The best thing about this strategy is, even if you are wrong, you could just hold STI ETF and wait for it to go up while accumulating dividends. So... Win Win no matter what.

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