Friday, October 2, 2009

September: A Bad Month for Stocks?

Some research says that in general, September and October are the worst months in the year for stocks. For that reason, I told myself to stay away from the market for these two whole months. Then, I was influenced by someone, and changed my mind.

As a result? You can expect. Heavy loss! Yesterday came the biggest blow. Starhub lost its exclusive rights to televise Barclays Premier League, and ESPN Star sports channels to its rival SingTel. Starhub's price plunged from S$2.17 the previous close, to close at S$2.03, with 39 million shares changed hands. Then today, at a low of S$1.94, I dumped all mine, total damage is over a thousand dollars.

With this, my total loss for September amounts to well over S$1000, wiping out a significant portion of my small profits of the year.

The Starhub episode serves as a good lesson for me.

1. I didn't do my homework properly. Didn't pay attention to the date on the BPL bidding, although I was aware Starhub had this issue hanging above its head. And I didn't expect it to lose the rights.

2. I didn't react quick enough to cut my losses. When I noticed a sharp drop in Starhub price, and came to know that they lost the rights, I still hesitated and dragged until today to dump all my shares.

3. I deviated from my original plan of staying away from the market for the whole of September and October.

The medicine is bitter, but if it can cure your illness, you have to swallow it. Looking for good health ahead. :)

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