Whoa- It has been a while since I blogged-
My son kept me busy and teaching and research and investing-
So what has changed since April?
Well, I started swing trading more- Which I never thought I would do-
But after six months, I can say that I have some understanding of swing trading-
The best part is that it works. Especially, in this abnormal markets-
Sometimes I can even day trade- I buy a stock that dropped 3% and sell it at 1-2% profit-
I never expected to day trade either but it does work…when the market is abnormally volatile-
Do I think this is sustainable? Nope- As soon COVID ends and markets become more stable, I will probably do much day trading and swing trading.
Will I miss day trading/ swing trading- Well, it is a learned skill- But I would not miss that much- I like my buy-and-hold approach- Less stress and less time spent on analyzing patterns.
I like analyzing patterns but I still like fundamental analysis more 😀
So what I do I have?
Here is what I am up to-
I am building up on REITs- Yup, they got battered during COVID crisis-
They appreciated a bit but are still down-
Eventually, COVID19 will end or people will go herd immunity, and start shopping and enjoying again-
Of course, expect more volatility with the uncertainty of the next stimulus bill and elections-
And I know some retailers are gone forever-
But those spaces will be also be eventually filled.
In terms of residential REITs, they are fine unless they have a big exposure in CA or NY, where there is a mini exodus occurring.
So what am I up to?
For residential REITs, I am long Bluerock Residential Growth REIT (BRG) and INDEPENDENCE REALTY TRUST, INC (IRT).
Both REITs have large exposures in growing areas with a nice economy (e.g. Texas), very good rent collection (95%+), and nice dividend (4%+).
And not much debt due-
So low risk and decent upside-
I have my core position, and currently I swing trade both BRG and IRT as it is trading up and down-
I will in the future put more money down once the volatility dies down. For now, swing trading gets me about 1%, which is very good when your bank doesn’t pay you much.
As always do your due diligence and manage your risk-
Thank You Jesus for another blessed day-
Let us always be thankful and give You all the glory ^^
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