Introduction
It is tough for me to learn as a passive investor. I have over $100,000 on my investment account, and then I saw so many opportunities for me to make money, in reality, now my market value is down over $13,000 dollars. I plan to buy high and sell low, cut loss today, and then I learned from my friend's advice, after two hour and twenty minutes conversation, I change my mind to stay put, continue to rebalance.
Case study
I like to make money in long term. Best choice is to time the market pefectly, so I should sell everything when SPX is 3300 to make 10% profit, and then get back in market today when SPX is around 2500, over 30% loss compared to highest position 3300.
I need to do a simple checking on my TFSA. Here is the snapshot:
I like to keep VDU.TO, VFV.TO, VAB.TO as a balance portfolio, 40% VAB.TO, 30% VDU.TO, 30% VFV.TO. Right now, VDU.TO is more than $2000 less compared to VFV.TO position.
Think about in other way, VDU.TO's price is $27.74, which has to go up 27% to price $25.37.
27% usually takes more than 10 years if interest rate is 1%.
