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Nolan
Contributor
I am still pretty new at this, any suggestions from more experienced traders would be most gladly welcome. I am not too bad on trading the underlying shares but the warrants seem to be getting me a bit. Any suggestions on what to look at will be most gladly appreciated. Thanks
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7 REPLIES 7
Frequent Contributor
I am not experienced at all, but the few lessons I've learnt. Stay away from warrants below 20c, don't look at warrants with a short life and don't average down. If you are not into gambling stay away from waves.
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Super Contributor
Study the graphs VERY well and find a "good reason" to buy the Warrant before you enter into Warrant trades or you will burn, any "surely it must" will kill all your profits you made so far
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Not applicable
& watch out for time decay eating your profits slowly but surely
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Once you've found the share you want to buy go to:
http://www.fin24.co.za/trading/sawarrants/displayarticles.asp?Nav=tr&lvl2=war&ArticleID=298403&Ticke...
You'll need to register. Buy call warrants when you expect the price to go up and put warrants when you expect the price to drop. The most important factors you'll see here are weekly time decay and gearing (IMO).
Read the tutorial on this site for descriptions of all the variables you'll find on the grid.
Never trust the price estimate of the warrant calculator, always check on an up to date matrix available from each issuer.
That's my warrant wrap-up.
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Super Contributor
Hi Nolan - also a good idea to look out for the short course run my SB. I'm not sure if you are close enough to one of the centers to get there tho. In particular look out for the 'Truths of the Market and Trading tips' and the 'Introduction to Technical Analysis'.
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Super Contributor
Wait till a trend is firmly established,don't second guess what u think is going to happen ,remember THAT THE MARKET CAN STAY ILLOGICAL LONGER THAN U CAN STAY SOLVENT! Don't try to get in at the bottom but as Chartist is always saying "the trend is your friend" which can be seen on a chart.I n other words trends continue for some time and with warrants it is possible to make a great deal in a very short period.
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Frequent Contributor
Also remember: Will you be making decisions based purely on technicals or will you look at fundamentals too?
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