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Online Share Trading

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Dead Forum? Let's have Fun (Losses and Gains) Tax Year!

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Not applicable
why do u guys insist on trading warrants, ive been trading for 3 years, and did quite a large amount of trades in SSF's, and in exactly 1 year ive taken a portfolio from 50k to to 200k and then back to 75k coz of losses, but i mean, im still in a profit, i just tend to think SSF's are so much more safer than warrants, unless anyone wants to enlighten me as to why it really isnt? and for simon, why is it u when ur lazy system gives u a trigger u choose to trade a warrant than say a spread (ALSI futures), i understand ur fear of a black swan. and simon is ryt bout the percentage, ive recently started trading and started with 2.5k as i was still unsure if i was ready after the 125k i lossed when the bull couldn stop runnin around last year june-aug, but ive taken that 2.5k to 7k in 2 months, no lies, u can ask simon to spy on my account, do u guys think the market tempts people into gettin it ryt 9/10 times and on the 10th tym u lose whatever u made in the whole 9 times?
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THRESHOLD
Super Contributor
I've gone a step further. I won't trade anything more aggressive than an instalment - and not even the "turbo" version of these. Human nature and all that - you always give back your gains with warrants - because you ride them for too long; or switch in and out of trades for too long - and when the market turns, it moves down far faster than it went up - and poof! - there goes everything.
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john_1
Super Contributor
I traded warrents very profitably, but agree with the last caller, the key to the warrents for me was that at the time there were lots of in the money low geared opptions available, As the cost of borowing is low I believe that installmets offer great trading as the cost of trade if using large amounts of money are very low.
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Asher
Regular Contributor
Has anyone OTHER THAN SIMON made any consistent profit from warrants. I have made money from shares( top40 to fledgling ) but still have not found an effective way to make money from warrants. Time decay is not my friend
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SimonPB
Valued Contributor
warrants are lower risk as they have limited downside .. ssf; cfd, futures do not .. franjly I do not know how to manage that risk in a black swan event .. ask those long ACL with a future or cfd last week how it feels ??
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Not applicable
I made over 20k in the last 2 months with very low risk on warrants. I started with 15K so now have a profit on those of 133% in 2 months.
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bangbul
Regular Contributor
I've actually been doing quite well using SBK's TA, untill I got stopped out [with profit] & see prices shoot up just after that, got pissed with the situation & caselled my stops on the rest [& forgot that i did. lol] funny enough those did not turn around. So lost all my warrants profits through stupidity. But yes you can make money on warrants.
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john_1
Super Contributor
LOL yes.. warrents have lowest black swan risk.. and yes black swans happen and they happen often..just ask the guys long ACl when the last black swan hit!
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Asher
Regular Contributor
Simon, Great Caller111, CPS and john what time frame do you guys use? What is the longest you hold a warrant? My problem is that while the underlying my be priced higher, the warrant has gone down! Is your stop on the warrant price or on the share?
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Not applicable
i dont trade warrants, too complicated, SSF's are much more straight forward if compared in my view, but simon will answer that to u as u have to set ur exit before entering the trade, but dont know what percentage.
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DST
Super Contributor
There are no black swans. ALL SWANS ARE GREY.
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john_1
Super Contributor
No all black swans are RED.. I am yet to see an oke claped by surprising news from Mr. Market come out in the black!
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Not applicable
Asher, Rule 1 IMO (the ONLY RULE) - warrants are not holding instruments.

I am in and out within hours sometimes days and others maybe a week. Mostly 2 days max. This week I have been in and out of various warrants 7 or 8 times. Sometimes three in a day.

The usual cause for warrant losses,
1 - you are not watching the trend
2 - You are to greedy
3 - you are choosing the cheap warrants (under 20c), these are very high risk on many occasions.
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john_1
Super Contributor
buy only deap in the money warrents.. gearing is low..x3 maybe.. but still plenty.
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SimonPB
Valued Contributor
no derivative is a holding instrument ..
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SimonPB
Valued Contributor
I use end of day charts and my lazy system used to put me into tareds that ran for 7-11 weeks .. current market the tardes are now around 2-3 weeks, but the long over christmas was about 6 weeks or so .. and stop either on underlying (but then time decay may catch you out) or the warrant itself ..
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SimonPB
Valued Contributor
an I been making money on warrants for ten years now, but for the three years before that I lost, blew out a number of portfolios due to lack of knowledge as to what a warrant was and also as to what trading was ..
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