Simon or ? I had a trigger for a long AGLQ-MAR09 SSF (fortunately only 1) to trigger at underlying 16500 and minimum 16450. Received confirmation of trigger at 09h10 but no confirmation of sale. Still shows on portfolio with a red minus 1 and getting worse! Did it go through that R50 gap (ok I know its too tight!) too fast for the sale or are the volumes so large that confirmation only comes later today (Still hopefull that the daily loss is not true!)
Thought so. Tight limit seemed ok under normal trading conditions but then today was abnormal - like having only water for 4 hours per day. Ah well, probably not such a bad time for a born optimist that things will rise again, to pick up a few more??
I would not recommend that. And, you have to be careful with those lower limits as you've seen. When the sh*t hits the fan you just want out - I know some ppl say you should set the lower limit at zero.
Don't compound the whole F***-up by averaging down. If you get lucky and it bouces, sell into strength. Remember where you stop was? It has triggered and your job is to get out now with as little damage as possible.
Your stoploss should be put in a place where it would confirm that the trend is against your trade.Once that confirmation is received, you need to get out and take the hit. If you are still thinking it could bounce back, then your stoploss was in the wrong place (a very costly mistake over time). You can't average down on warrants, because of the time decay, they are a short term instrument - the strategy is only good for share purchases (and again it is not a popular strategy among traders). This is all IMO of course!!!
Skapie... what do you figure the cost of holding a SSF is? I was looking at my SBK futures and it seems that every day... the first 1.something percent, as much as 1.3% favourable move goes to time decay. If you don't get a bigger move than that in your favour, you lose. Reckon that's a good estimate? That seems pretty much on par with warrants.