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Online Share Trading

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Mic - This one's for you......

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CE
Super Contributor
Hi Mic - Hope I don't sound stupid but I still do not understand how you trade warrants like you trade equities ? Will you please explain how you go about doing this. Appreciate your feedback !
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15 REPLIES 15
Mic
Super Contributor
You type in the warrant code in the share code box left top of page. You click trade, and you buy as many as you want and sell them the same way. Cheers
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CE
Super Contributor
In other words, you trade under your "normal" trading account if I am correct. If so, why don't you open a warrant account with Standard Bank and only pay a flat fee of R50 per trade ?
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Mic
Super Contributor
Yes I know that, what I am trying to say is that I was told by forumites not to hold these positions over night, but to buy and sell in the same day. This works but I find if I traded for example TOPDWX with the trend for a few day's I make more profit. Does that make sense.
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Tango
Super Contributor
Mic, day-trading warrants is not a great idea unless you are trying to leverage a sharp move, like an expected bounce. If you can, hold onto a profitable warrant as long as possible. It's critical to let winning trades run. On my most recent trades (unprofitable btw) I was stopped out after 4-5 days. Some people trade lower-geared warrants with very low time-decay and hold onto them for ages. You can also ask the issuer to trade you into another one of their issues on the same underlying if the time-decay starts to pick up but you want to stay in the trade and don't want to cross the spread twice. If you've caught a smooth trending stock you can stay in a geared trade for months this way.
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Mic
Super Contributor
Now if you explained this to me in the beginning when I started trading I would have lots more money now. But the advice I was given at the time by someone els was to day trade.
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CE
Super Contributor
Not realy Mic - It boils down to costs. You pay a minimum fee of R70 up to R10 000 and 0,7% thereafter on your "normal shares account". Warrant trades is a flat rate of R50 per trade no matter how big or small the amount. If you enter and exit the same day, it is still 2 trades and if the amount is less that R10 000, you save R40.
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CE
Super Contributor
Besides the cost Mic, what Tango said : do yourself a favour and look at the history of FSRSBA and ASASBO. I took profit at 50c.
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john_1
Super Contributor
Get your head out of the smoke stack and think it through for yourself , on any day the market is sentiment and mood driven, but a trend ( which you can see, smell, taste, and trade happens over a period of time.)
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CE
Super Contributor
mood driven - like yesteday and today ? motherfather !!!! (thanks Cents)
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john_1
Super Contributor
Exactly! yesterday I was perky nana and today I have the hangover!
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Mic
Super Contributor
That is exactly how I trade now
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CE
Super Contributor
Cheers Mic - at least something positive came from what I thought was a stupid question.....
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Mic
Super Contributor
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Not applicable
after today hangover in deed........
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SKALA
Super Contributor
Lekker Mic! Nou het ons almal iets geleer. Voorspoed en maak maar 'n "warrant account" oop en laat hulle loop met die trend.
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