It has only been 14 days into 2016, my portfolio has already dropped 2.4% while STI dropped 9.1%.
Worse, the cash in my portfolio has reduced to about 43% after I bought a number of counters over the last 2 weeks when the market fell.
How do I feel right now? Honestly, I don't feel anything -- I am not fearful yet!
What if the price continues to drop further? I guess I would probably take it quite well if my portfolio drops less than 10% while I still have substantial amount of cash to buy more (average down).
Should my portfolio fall more than 20% in value and I have run out of cash to continue to accumulate shares, I guess I would be very fearful and start to find excuses to sell shares. I hope I would not reach that stage, and even if I do, I should resist to sell my shares as that would be the worst time to sell shares. Instead, I should hang in there and wait for the market to recover.
I have reminded myself to focus on companies with high cash level, good free cash flow and are generous with dividend payout, so that even if I have exhausted my fund, I could still re-invest the dividend, which averages about 5.6% right now.
As of now, I am still buying selectively but has done it more slowly.
This is really an exciting time from the perspective of learning how to deal with greed and fear.
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