“I have an unrealised stock loss of S$13K. How do I re-start my investment journey?” — SG Man

SINGAPORE: A Singaporean man recently shared online that his unrealized losses have now hit $13,000.

Posting on r/singaporefi, he revealed that he bought the stocks between August 2020 and December 2021, when the majority of them were near their all-time highs (ATH).

Unfortunately, the prices of the stocks have plummeted and have not recovered since then.

Among his most significant losses are in Medtecs and CORSAIR. He bought Medtecs shares at around $1.50 each, but they have since dropped to $0.15, resulting in an unrealized loss of approximately $8,000. 

Similarly, his investment in CORSAIR at $40 per share has tumbled to $11, leading to an unrealized loss of about $700.

Since 2021, the man shared that he has not made any investment moves due to his fear of incurring further financial losses and because he has been occupied with his studies, internships, and employment. 

Despite seeing his investment portfolio take a hit, the man expressed that he still hoped to earn passive income through dividends or capital gains, as he earned a modest income from his job as an allied health professional in the community sector.

“I hope to earn and amass more money to lead a more comfortable lifestyle and hopefully own a home by 35 years old,” he said.

He then asked for advice from the local online community if he should sell off the stocks in red or keep them in hopes that they would recover.

“How to re-start my investment journey? Any advice on how to re-strategise or spring clean my portfolio?” he asked.

“Invest in yourself so you can get a well-paying job.”

In the discussion thread, many advised the man to sell his stocks if they had depreciated by 50–70% of their initial value since recovery is highly unlikely.

Also, if he still intends to continue his investment journey, they stressed that he should not blindly follow trends this time and do his due diligence.

According to them, it’s crucial for him to have a deep understanding of the stocks he’s planning to purchase and to devise a clear entry and exit strategy. Furthermore, a few advised him to reassess why he bought those stocks in the first place.

If he no longer believes in the initial thesis or if there wasn’t a clear rationale, they recommend letting go of those stocks, switching over to diversified index funds like VWRA, and staying away from stock picking.

One individual suggested that he invest in safe bets like Singapore Savings Bonds (SSBs) and Treasury bills (T-bills) as an alternative. Meanwhile, others suggested another approach: investing in his skills.

One Redditor said, “Sorry to burst your bubble with some pragmatism, but the best way to earn capital gains reliably (not through gambling, aka amateur-grade stock picking, no offense) is to take a high paying job and invest your big salary into an S&P500 (or World) Index. 

So realistically, the best investment advice to you would be to invest in yourself so you can get a well-paying job.”

Read also: Singaporean advises younger generation “to focus on enhancing their skills rather than learning about investments”

Featured image by Depositphotos