Portfolio Update (February 2016)

The stock market did not do well in the first month of 2016 but in February, the outlook of the market look more positive with investors coming back into the market to buy stocks that are on discount. What impact has it got on my portfolio and how is my portfolio looking now after the 9% plunge in the Dow Jones Industrial Average in just two weeks in January.

Realised that I had actually forgotten to do an update for the month of January as I was busy preparing for Chinese New Year in the early part of February.

This year did not start off very well and we had seen a major sell-off in the month of January with China’s major stock exchanges triggering “circuit breakers” consecutively and the Dow Jones Industrial Average plunging 9.52% from the last trading day of 2015 till mid-January 2016.

In February, we have seen a partial recovery of the stock index and it looks like the investors are coming back, picking discounted stocks to add into their portfolio.

Dividends

For the month of January, I had received $3.18 worth of dividends from Automatic Data Processing, Inc. (NASDAQ: ADP) while Clorox Co (NYSE: CLX) and Abott Laboratories (NYSE: ABT) paid their dividends of $6.16 and $5.72 respectively in February.

Total year-to-date (YTD) dividends, as of February 29, is $15.06 or 0.26%, inclusive of the dividends that were reinvested.

All the dividends were reinvested.

Stock Symbol YTD Dividends
Home Depot, Inc. HD $0.00 0.00%
Johnson & Johnson JNJ $0.00 0.00%
Automatic Data Processing, Inc. ADP $3.18 0.35%
Clorox Co CLX $6.16 0.63%
PepsiCo, Inc. PEP $0.00 0.00%
Abbott Laboratories ABT $5.72 0.58%
Total Dividends $15.06 0.26%

Stock Holdings

Stock Symbol Shares Cost Basis
Home Depot, Inc. HD 8.00 $1,008.67
Johnson & Johnson JNJ 9.00 $917.68
Automatic Data Processing, Inc. ADP 11.027 $904.19
Clorox Co CLX 8.034 $977.82
PepsiCo, Inc. PEP 10.00 $971.29
Abbott Laboratories ABT 22.104 $989.04
Total Investment Amount $5,768.69

Profit & Loss

Most of the stocks within my portfolio managed to recover and entered into the profit zones with the exceptions of Home Depot, Inc. (NYSE: HD) and Abott Laboratories (NYSE: ABT). Overall health status of the portfolio looks healthy.

Stock Symbol Profit/Loss
Home Depot, Inc. HD $15.71 1.56%
Johnson & Johnson JNJ $27.86 3.04%
Automatic Data Processing, Inc. ADP $29.68 3.28%
Clorox Co CLX $37.84 3.87%
PepsiCo, Inc. PEP $6.71 0.71%
Abbott Laboratories ABT $132.73 13.42%
Total Profit/Loss $46.15 0.80%

Portfolio Outlook

Although Abbott Laboratories had fallen 13.4% from my average purchase price, the stock price is mainly affected by the unfavourable exchange rate, lowering their earnings. I will continue to monitor the situation and decide if there is a need to readjust the portfolio.

Johnson & Johnson (NYSE: JNJ) had recently also made headlines when they admitted to some of their products contains cancer causing ingredients. However, JNJ had cited that they had used minimal amounts of the ingredients. Although the admitting of the use of cancer causing ingredients will not do good on the company outlook, I will continue to hold on my portfolio and judge if there will be a need to invest the money into another company.

Trading Update (December 2015)

Second month into my Forex trading. Things did not go well and I had lost a huge chunk of my trading investments. Although it is going to be tough, I will continue to press on. Looking at what went wrong, learn the lessons and move on.

Trading did not go well for my Forex. I have lost a huge chunk of my initial investment. The amount that I have left in my account is currently at 1,257.76. Lost a total of $3,742.24 or 74.84% of the initial investment. Not a very good way to start off my trading journey.

What Happened?

One important step to do in investing and trading is to review the trades, whether they are successful ones or those that we lost. Review of trades is overlooked by many investors and traders as many feel that we should quickly move on especially for the ones we lost. However, the importance of trade review allows us to understand what did we do wrong, why did the trade moved against us and finally how we can do better.

The first month I started trading Forex again, I closed the month down by around $1,500. That left my account with around $3,500.

In December, during the period when Fed was announcing the interest rate hikes, there were opportunities to enter new positions and very soon, I had opened up 5 new positions totalling up to 20 lots. With each lot at 0.5 mini, I had unknowingly opened up 10 mini-sized ($100,000) positions.

With Oanda’s margin requirements 2%, the total margin that I will require for the 10 mini-sized positions will be $2,000. Because of the volatility during December, very quickly the positions started going negative and all my positions were soon liquidated due to margin call.

Lesson Learnt

One important lesson, and a very basic one, that I had learnt from December’s Forex trading. Never over-trade.

Wanting to earn from Forex trading fast enough requires opening of minimally mini-size positions. Being a double-edged sword, price movement can move very fast with or against you. If it goes against you, very soon you will be facing a margin call and lose a huge portion of your account.

Always understand what is the kind of positions that your account size allows you to take. It would be better to earn slower than to over-trade and risk getting margin calls.

What is Next?

I will not be putting more money into the account (until I think I am ready to increase my position size). I will be carrying on with the $1,200 account size, opening nano-size positions to polish up my trading and building up my account size from there.

Portfolio Update (December 2015)

The year 2015 ended when the market closed on December 31. The end of a year marks the start of a new year and in 2016, I had to make some adjustments to my portfolio as the brokerage firm that I was using decided to discontinue its brokerage services in Singapore. A look at how my investment portfolio wrap up in the last month of the year.

2015 just ended marking the start of a new year, 2016. A brand new start for my portfolio as well. My broker, E*TRADE, had just announced the discontinuing of brokerage services in Singapore, leaving me to change my brokerage firm.

E*TRADE discontinuing brokerage service notice | Investor Monkey

After careful considerations and reviewing of available brokerage firms in Singapore, I had decided to move my investments to TD Ameritrade Asia.

The transfer of brokerage firm was quick and simple. Filling up the account transfer form and the transfer of the shares along with the account balances was moved to my new account. The only drawback was that the partial shares had to be liquidated as cash before the transfer. It does not affect me much since I had only just started the DRIP investing and there was not much partial shares.

As part of my investment plans, I will be putting aside approximately $500 a month for purchasing of new shares. For the past six months, I had put aside $3,000 and since the shares are doing a small pullback in price in mid-December, I see a small opportunity to purchase more shares for my portfolio at a small discount. After my ThinkOrSwim account is up and ready, I quickly transferred the $3,000 investment to the account and purchased more shares, on December 22, in the companies I am already invested in. Just in time to purchase the shares for the Christmas rally.

Number of shares and price that I had purchased with the $3,000 investments.

Stock Symbol Shares Price
Home Depot, Inc. HD 4.00 $131.37
Johnson & Johnson JNJ 4.00 $101.71
Automatic Data Processing, Inc. ADP 5.00 $84.76
Clorox Co CLX 4.00 $127.93
PepsiCo, Inc. PEP 5.00 $98.91
Abbott Laboratories ABT 11.00 $44.25

Dividends

Johnson & Johnson (NYSE: JNJ) paid dividends amounting to $3.77, before tax, on December 8.

Home Depot, Inc. (NYSE: HD) paid dividends amounting to $2.37, before tax, on December 17.

Because the dividends are paid to my E*TRADE account, these dividends were kept as account balances and later transferred to my ThinkOrSwim account.

Stock Symbol YTD Dividends
Home Depot, Inc. HD $4.73 0.98%
Johnson & Johnson JNJ $7.52 1.48%
Automatic Data Processing, Inc. ADP $2.94 0.62%
Clorox Co CLX $3.08 0.67%
PepsiCo, Inc. PEP $0.00 0.00%
Abbott Laboratories ABT $2.64 0.53%
Total Dividends $20.91 0.72%

Total year-to-date dividends paid till end-December is $20.91 or 0.72% of my total portfolio size, before I add on more shares to the portfolio.

Stock Holdings

Stock holdings as of December 31, 2015. Cost basis is the total invested amount, including dividends that were reinvested and the commissions and taxes paid. This cost will be used in the percentage calculations for YTD dividends, and profit and loss.

Stock Symbol Shares Cost Basis
Home Depot, Inc. HD 8.00 $1,008.67
Johnson & Johnson JNJ 9.00 $917.68
Automatic Data Processing, Inc. ADP 11.00 $901.98
Clorox Co CLX 8.00 $973.51
PepsiCo, Inc. PEP 10.00 $971.29
Abbott Laboratories ABT 22.00 $983.32
Total Investment Amount $5,756.45

Profit & Loss

My investment portfolio ended positive 2.78%, after including the newly purchased shares. Although the profits does not look great, it did better than the Dow Jones Industrial Average which closed lower at -1.02% for the year.

Stock Symbol Profit/Loss
Home Depot, Inc. HD $59.33 4.89%
Johnson & Johnson JNJ $6.80 0.74%
Automatic Data Processing, Inc. ADP $29.94 3.32%
Clorox Co CLX $41.13 4.22%
PepsiCo, Inc. PEP $27.91 2.87%
Abbott Laboratories ABT $4.70 0.48%
Total Profit/Loss $159.89 2.78%