$Lion-phillip S-Reit(CLR.SG)Context:I noticed that S-REIT prices had declined recently, and I saw the price weakness as …

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

Context:

I noticed that S-REIT prices had declined recently, and I saw the price weakness as an opportunity to add to my existing position. Rather than trying to time the exact bottom, I wanted to use the decline to gradually lower my average entry price through dollar-cost averaging. My thinking was that the underlying investment thesis had not changed significantly, so the lower price provided an opportunity to build my position at a more attractive valuation. I was also comfortable taking a longer-term view and accepting that prices could remain volatile in the short term.

My trade:

I added to my S-REIT position after the price dropped, as I wanted to DCA and increase my exposure at a lower price. I did not deploy too much capital at once because I recognised that the price could continue falling and I wanted to keep some flexibility to add again later. My main reason for adding was to reduce my average cost while maintaining my longer-term exposure to the sector. I was also still attracted to the potential distribution income and the possibility of capital appreciation if market conditions improved over time.

Takeaway:

Next time, I would set clearer price levels and position sizes for each DCA entry beforehand, rather than deciding to add mainly because the price had fallen.