Introduction
I designed my Victoria TFSA portofolio, and the risk management is based on 30% down risk since 60% equity in the balanced portofolio. But in reality the market down swing 15% is much worse to me, and almost I felt the whole world will end and I need to get out. So it is important for me to think in terms of percentage loss of Victoria portfolio.
Case study
I finally learned how to work with Questrade.com balance history and put together day by day into Excel sheet. Here is my final version of balance history from June 1 2019 to April 12, 2020.
My story of bear market
I like to say that I panic and like to sell on March 16, 2020. And I learned to calm down, do not let my emotion take control. After three days market swing up from March 25 to March 27, I felt that I gained over $4,000 without doing anything, I decided to purchase oil stock on March 27, 2020.
Timeline
I have to learn how to read my own emotions to hold Victoria portfolio starting from June 2019.It started party time mood from 12/1/2019 to Feb. 19, 2019.
Feb. 19, 2020 market gain 2.9% <- I like to have party, share good news to every one. Talk to every one about stock
Get nervous, I like to get out. Sell 50% of my equities from March 12 to March 23, 2020.
March 16, 2020 market losses -15% <- I just could not calm down. Think about selling 50% of equity, from $30,000 Canadian dollars to $15,000 dollars <- risk aversion
April 10, 2020 market losses -3.48% <- piece of cake, I learned how market works. Bear market is so challenging, but I should make a few more bets.
Positions on April 12, 2020
My rebalance history
Buy low and sell high, that is the game of investment.
I did some transaction in five days:
No.1 January 21, 2020 - buy low sell low, first time after six month, sell $2000 gain on equity ETF
No.2 Feb. 6, 2020 - buy $13,000 dollars equity fund - transfer money from US banks
No. 3 March 6, 2020 - SPX went down over 15%, all 30% gains from June 2019 to Feb. 2020 is gone. Buy some equity fund.
VFV.TO $1400 purchase
No. 4 March 12, 2020 - SPX went down another 20%.
VFV.TO $742.56 purchase
No. 5 March 23, 2020 - SPX went down
VDU.TO $1060.40 purchase
No. 5 March 27, 2020 - buy oil stocks $2000 dollars
VFV.TO Total $2000 dollars (March 6, $1400, march 12, $742.56)
VFV.TO ETF balance history
