Success of Warrant Trading

[saash]

Lol - did the net nanny make the rule? or the forum? .... Who's the youngest now days? Lots of youngsters fallen off the waggon.

[HateGauteng]

seen it in one of the posts a while back.

[SimonPB]

Issue re long dated is only for time decay NOT to rescue yourself as that implies no stop loss ..

My winning warrant trades seldom make less then 20% ..

Don't buy warrants less then 20c, in fact more is better as it reduces spread costs.

SSF and CFD may be easier to understand, but they have higher risks ..

[HateGauteng]

On the plus side - someday when you reach 40, you'll never age more :-)

[saash]

CPS - in your eg, what was the required move in underlying to achieve the 2c move in warrant??
Simon - Totally agree about not trading warrants under 20c (and is there a forum age restriction? - lol).

[SimonPB]

I think we should ban all under 40's ??

[saash]

Then we'd need a new net-nanny.

[#8]

Simon, 20% plus usually on the Lazy system and more (higher price) is better but spread still remains. Long date I know it is not meant to rescue you but it is a part of the toolbox. I did say it was one method. Under 20c I would agree but in this example no over 20c option on that one.

Saash TKG had to move 60c to achieve 2c move. did it three times in three days and more.

[#9]

Saash, look just at today for example. Got in at 17c decided to sell at 18 then relooked at live charts and saw 19. I did really think of 20 but just had the "feeling" it would ot do it. So I changed the target to 19 and out I went bfore it dropped again to the 17/18 entry again. Often have done multitrades in a single day. But I am only working with R30K and use that for my spending monies (maybe a little higher risk than I really would take but have to scratch an itch every so often so rather with little capital than to much ;-) );-)

[SimonPB]

if no warrant above 20c I walk away from the trade .. in fact haven;t traded a sub 30c warrant in last few years .. an sure there is always a spread .. but at say 30c it is 3.3% and nothing can make it smaller .. at 100 it is probably 2c and hence 2%, but could be 1c and 1% .. which on buy and then sell is a profit we are throwing away (actually giving away to issuer) ..

[Rovert]

i'll be your mentor, when i buy a call, you buy the put and so on...one of us must get it right!! I have been lucky in the last week though...rode the plats puts down and timed the calls just right ; out today on 35% profit. But you need to pay your school fees, i use the alerts alot to trigger large dips / climbs...whatever works for you

[Asher]

How often do you Trade, Simon?

[SimonPB]

10-15 trades a year ..

[MoMo01]

Simon just out of curiosity,are all 10-15 trades successfull....and % gain do u make

[saash]

It seems to work for you, but I don't really know how you do it without a decent graph to trade the shares - or are you also getting graphs off a different platform? You can't just "gut feel" the high and low for the day ....

[#16]

So who says you cannot "gut feel" a trade? but yes that is about 20% of the system. The rest is overlaying various charts and watching the direction within the windows on each and the relation to each. I use amongst these TOPI, ZAR/USD, and weirdly enough the BRENT as well. Sometimes I throw the Gold or Plat on just for a new look but not to often. But remember what is attached to TKG is retail (consumers have to spend and business has to sell) then there is distribution (orders placed and recieved), manufacturing (raw materials needed for making the stuff), resources to get the raw materials to distributors etc etc. No share operates in a vacuum. Wish I could explain it in words but ....

[saash]

So see, it has a lot less to do with the 18-odd cent warrant, and a heck of a lot more to do with your unique ability to understand the relationship between the prices of various resources and the effect they have, in relation to the strength of the dollar, on the price on the share in the business that uses those resources ......... Not so sure too many of us here can follow a system that looks like that :-(