Friday, October 17, 2014

n00b mistake

Today I saw that Lippo Malls have gone down a bit. I like Lippo Malls for a variety of reason. It is a retail trust, so it should technically be trading with a slight premium given its sector. However, because its assets are in Indonesia and people are skeptical of it, along with currency fears, the stock is trading with a discount to NAV. Lippo Malls also has a strong sponsor, which is Lippo, duh. Big name by the way. I didn't know how big they were til I saw the huge Lippo Centre in Hong Kong. Personally, I am a huge believer of the Asian story over the next few decades. In SEA, that bulk of that growth is going to be coming out of Indonesia. This is a good way to get some good strategic exposure without taking too much risks, I feel.

Although I have bought this ticker before at $0.405, I refuse to anchor myself to a price point. If something gets cheaper and it still looks good, I'm going to buy more of it. Or at least that's what I thought until I saw this message.


Panic! I sold instead of buying? Whuttttttttttttttttttt. I was freaking out.

I calmed myself down and then placed a buy order for double the size at the same price. A few hours of being anxious, and I get another SMS:


Phew. My silliness and recklessness to act fast almost cost me some pain! At the end of the day, the only pain I have is the roundtrip transaction costs of the needless sell and buy trade. Total cost of my mistake? Probably less than $3. But I think it is a lesson well learnt about being more careful with your money! What a rookie mistake to make. I'm still mentally beating myself up for being so careless!

7 comments:

  1. sgx might penalize you if you sell short withoiut having stock in your cdp account. check with your broker

    ReplyDelete
    Replies
    1. Hi Anon,

      Thanks for the protip! That's another reason why I wouldn't want to short sell individual names directly. I did have 1 existing lot already, so lucky me, I wasn't naked shorting.

      Delete
  2. I'm looking at Lippo too haha, for a REIT, it's relatively affordable.

    ReplyDelete
    Replies
    1. Hey TI,

      I would be keen to look at your analysis of Lippo if you came up with one!

      Delete
  3. Even professionals make such mistakes from time to time.

    It's the famous "Fat Finger" error trade ;)

    ReplyDelete
    Replies
    1. Hi SMOL,

      I hope that if I ever can reach the professional level, I will not make such "fat finger" mistakes in the future! This is a silly mistake to make, but I was lucky that it was also a relatively cheap lesson to learn for future reference :)

      Delete
    2. Say hi here to one of those professionals, I've been guilty of giving free money away like this, buying instead of selling a shit ton of bonds and then quickly scrambling to fix the problem. Fat fingers occur in many markets, if you ever spot one and can fade his move it's free gold raining from the sky. Good that you reacted so fast!

      Delete

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