2018 Review I

This will be first part of 2018 review.

1) Cutting away low quality stocks

I have been selling off low quality stocks such as the following:
- AusGroup: has high debt
- Geo Energy: I think it lack a moat and takes on unneccessary debt

This is to get back cash, so as to re-deploy to more stable or better stocks

2) Buying low quality stocks at the market peak

AusGroup and Geo Energy were bought at the start of the year, when the market is booming. I think the purchases stem from the following reasons:
- my want to deploy the cash from Cogent privatisation
- my unwillingness to hold cash
- my lowering of standard amid the market peak/optimism.

In future, I should strive to hold more cash and be less willing to buy stocks when market is optimistic, especially when the market has been rising for 2 years.

3) Be willing to be not fully invested when market is very optimistic

I knew that the market was very optimistic during late Jan, as the prices of my stocks were rising almost everyday and the market has been rising for past 2 years in 2016 and 2017.

In future, when similar market conditions arise, I should be more wary and start to hold more cash. This will help to soften the market downturn subsequently.