Yesterday, I spent the night analysing First REIT's graph chart to predict any possibility of its price maintaining at $0.755 when I hit the buy order the next day, which is today. Looking at both ADX and MACD indicators, I sense the possibility and went ahead with the buy order to acquire my first lot on First REIT. In fact, I bought this REIT at $0.755 not long ago but sold it after it quickly bounced back and locked in a small profit.
This morning the price unexpectedly went up to $0.76 despite increasingly downtrend strength and my buy order was put on hold. At that point of time, I could cancel the order and launch another one at a higher bid of $0.76 but knowing the erratic nature of a per-day trading pattern, I gathered my little patience and waited for the price to get weakened. My effort pays off eventually. The price indeed came down to $0.755 for a short while in late afternoon before returning back to $0.76 again. It was this short while that I acquired my first lot of First REIT.
So what's my next move? After series of stock market shocks since Aug, I have realised which REITs are more resistant to price fluctuations. My Starhill Global, being a retail REIT, fluctuated more than AIMSAMP (industrial) and First (healthcare) despite having a lower dividend yield. When the stock market improves and prices test resistance again, I will look forward to partially divest a few lots of Starhill Global and channel these returns to First. This is to reduce my portfolio's overall volatility and enhance overall dividend earnings.
Another good news is that AIMSAMP is currently undergoing a major unit consolidation which will seek to reduce volatility. In another word, the already-stable industrial REIT will become even more stable as a result.
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