The below table shows my stock portfolio on 31 Dec 2020, before I started investing/ trading in the US market in 2021. It consisted of all Singapore stocks because I had spent the last 9 years (2011 to 2020) so afraid to leave the “safe haven” of the Singapore stock market. My total invested capital was $521,460 and my total paper loss was $141,200. However, due to my gains in the bank shares that I bought in 2020, my overall loss was $112,264. As for my surrender value, which means if I were to sell all of my shares at that point in time, I would end up getting back $409,196.
Fast forward a year to the current day, this is my portfolio.
The paper loss from SG stocks was reduced significantly as I turn $135.7k worth of paper loss into an actual loss. This allows me to finally release those falling knives (whose share prices may drop even further) and free up some capital to make other investments. My total paper loss amounts to $35,399, mainly due to my US stocks such as Alibaba, Pinterest, Palantir and Nio not performing to expectations. However, the good thing is I can still sell covered calls against them and bring down my average price for these stocks. My overall loss was reduced from $112,264 to $7,032. My total capital was also reduced because some capital was moved to the Options portfolio.
In the space of one year, I was able to do a restart of my portfolio by clearing all the legacy stocks that I have accumulated over the years. This is all made possible because of the profits I made from options trading. If you would like to learn about this powerful tool of options trading, do check out the newbie guide here.
Learning Investment With Jason Cai 