Current Market: (1)
(1) Bullish
(2) Bearish
Stocks / Reits Movement: (2)
(1) Uptrend
(2) Dowtrend
(3) Sideways
Trading Strategy: (3)
(1) Buy and hold long-term with trailing stop.
(2) Short-term shorting.
(3) Average down and collect dividends.
As the market threat of the trade war between US and China simmer down, smart monies are transferring monies into individual companies stocks that are starting to trend up to make more money.
For dividends investor, it is both good news and bad news. Why?
Good news is that reits price will be coming down to a reasonable price where you can buy and collect dividends.
Bad news is that tomorrow price can be alot cheaper than today if the smart moneis keep selling.
What to do?
Time cost averaging. Small retail investor will not know when the selling will stop or it maybe a one day fake down or a fake push down that last a short period of time. What we can do is not to invest too much all at once. Divide out your money and use time cost averaging to purchase same number of reits monthly or quarterly. Most reits gave out dividends quarterly and you can use it to purchase more shares. In time, crises will happen again, and smart monies will return to park their monies in reits again but the magic answer is that no one knows when.
