$Lion-phillip S-Reit(CLR.SG)Context:I noticed that the prices of S-REITs were falling, and I saw this as a potential opp…

$Lion-phillip S-Reit(CLR.SG)

Context:

I noticed that the prices of S-REITs were falling, and I saw this as a potential opportunity to increase my position at a lower price. Since I already had exposure to the sector, I wanted to take advantage of the price decline to lower my average cost per unit. I believed that the lower prices could provide a more attractive entry point for long-term investment, especially given the potential for distribution income and future capital appreciation. However, I was also aware that falling prices could reflect concerns about interest rates, financing costs or the overall property market, so I wanted to remain mindful of the risks involved.

My trade:

I added to my S-REITs position as the price declined, with the aim of lowering my average cost and improving my potential returns over the longer term. Rather than committing too much capital at once, I increased my holdings gradually so that I could manage my risk while maintaining exposure to the sector. My decision was based on the belief that the lower price could offer better value, provided the underlying fundamentals of the REITs remained sound. I also hoped that the additional units would increase my potential distribution income as I continued to hold the investment.

Takeaway:

Next time, I would assess whether the price decline is justified by the REIT's fundamentals before adding to my position, rather than focusing mainly on lowering my average cost.