$Lion-phillip S-Reit(CLR.SG)Context:I noticed that S-REIT prices were dropping, which made me consider adding to my exis…

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

Context:

I noticed that S-REIT prices were dropping, which made me consider adding to my existing position to lower my average cost. I believed that the price decline could provide an opportunity to accumulate more units at a lower price, potentially improving my overall entry price and increasing my future distribution income. However, I was also aware that the decline could be influenced by factors such as interest-rate expectations, financing costs or market sentiment, so I wanted to take advantage of the lower price while remaining mindful of the risks.

My trade:

I added to my S-REIT position because I saw the prices falling and wanted to lower my average cost. Rather than making a large additional investment, I decided to add to my existing holdings at a lower price. My main objective was to improve my average entry price while maintaining my longer-term investment thesis of earning distribution income and benefiting from potential capital appreciation. I also saw this as an opportunity to accumulate more units without committing too much additional capital at once.

Takeaway:

Next time, I would assess whether the price drop is supported by the REIT's fundamentals before adding more units, rather than focusing mainly on lowering my average cost.