Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

Poll on users of Simons lazy system

Reply
NJ_1
Frequent Contributor
I don't think I am understanding correctly what it is you are calculating. If you are buying at 85c and you set a 20% stop loss, then your stop loss will equal your buy in price when the price reaches 106.25. That means that at that point, when price = 106.25, your stop loss will be 80% of 106.25 = 85. Is that what you are after?
0 Kudos
saash
Super Contributor
Just remember that a warrant has time decay.
0 Kudos
Preston
Super Contributor
Jez, for expert advice, contact Chartist. "You are as precious as the ruddy drops that visit Chartist heart"
0 Kudos
TOPIX
Regular Contributor
Jezebel, at this point you only need to know 4 things: 1. What market are you trading? - obvious you are trading the Top40. 2. What instrument are you using? - you decided on a warrant. 3. Where is your stop loss? and 4. How many units are you trading? Points 3 and 4 are closely related. Current price of topska is 85c. If you use a 20% stop loss, your risk will be 17c/unit - point 3 answered. Do not risk more than 2% of your total trading funds. If your total trading funds is R100k, do not risk more than R2k. R2k divided by 17c = +-12000 units. Point 4 answered. Thats all - forget about everything else.
0 Kudos
Not applicable
I don't think so, but then I'm in a bit of a fog. Simon's system for exiting is a 20% trailing stop loss until breakeven, and then a lower low. I took breakeven in this context to mean the breakeven definition as per the warrants course. Am I being an idiot?
0 Kudos
Not applicable
That helps to calm my frazzled nerves, thanks. But I'm wanting to stick to Simon's exit strategy so I need to know if I'm understanding breakeven properly - see my response to NJ above.
0 Kudos
Not applicable
Is C still pining for me? I really thought he'd have got over me by now.
0 Kudos
NJ_1
Frequent Contributor
I'm sorry, someone else will have to come in here. I have no idea how the calculation for break even is done on the course, but it looks to me like you are using the strike price in your calculation, which seems strange. There's a good chance that I'm the idiot, of course ...
0 Kudos
saash
Super Contributor
Break even is the price at which your buy and sell costs are paid for by the profits in the trade. Depends on the size of the trade, not the price of the warrant.
0 Kudos
Not applicable
It's the exercise price, yes. And I'm still going in right now even though I clearly don't know enough and shouldn't. No prizes for guessing who's the biggest idiot, then
0 Kudos
saash
Super Contributor
I think it should probably be a good trade. International markets are clearly bullish and making new highs, and just be a matter of time before we carry on our rally to catch up. Take some profits when they're evident, to pay for the costs of the trade, and to bank a buffer, it'll help a lot with those nerves.
0 Kudos
Not applicable
All done, 12000 TOPSKA bought, 20% trailing stop loss in place, and nerves have steadied. Time for the Friday wine.
0 Kudos
HateGauteng
Super Contributor
What would be the exit strategy? Any figures?
0 Kudos
NJ_1
Frequent Contributor
I was referring to a trailing stop loss scenario where the break even point is where the stop loss equals the price where you bought in. If you simply want to cover costs, it's easy - just look on your portfolio when you are no longer in the red. I would be surprised if that is where you need to change to a single lower low sell trigger. You won't stay in many trades that way.
0 Kudos
Not applicable
Nah, still not sure. When Simon's talking to us again maybe he'll clarify.
0 Kudos
NJ_1
Frequent Contributor
Here's how I understand it (long position): firstly, put in a 20% trailing stop loss; then watch for your stop loss to reach your entry price (i.e. break even point); after that, track the close on TOPI and if you get a lower low, exit. So, if you bought in at 100, then the point where you will switch to watching for the lower low is at 125, when your 20% stop loss is sitting on 100, which is where you came in.
0 Kudos
Not applicable
Either you're a master explainer, or the wine is making me think you are. Ta ever so.
0 Kudos
Not applicable
the major correction is near, will tell your'l the day before.. its either next week or following week..
0 Kudos
Not applicable
O Boy !! See Simon has started something here ... A star to some or a disa ... star to others
0 Kudos
Ninja
Super Contributor
Some would argue that we have had the correction already over the last week and we are now ready for another leg up.
0 Kudos