I have decided to trade warrants for a living this year from July. So I have basically 6 months to start. I need some tips from the guys. I have a working strategy with +-95% hit rate. I am also a currency trader. Which is the best way to trade stocks ? There seems to be so many to choose from.
Sirah, stick to what you know, if you are asking forumites for tips on stock picks you are heading for a disaster, do your own research, using the forum to gain insight and for good banter. Be very careful, the JSE is not a playground, the ignorant will always do their boots,OMO.
Make a watchlist of the shares underlying the warrants u wish to trade,include PRICE,DAYS MOVE,NO OF TRADES,VOLUME,52 WEEK HIGH,52 WEEK LOW,and very important GAIN SINCE WATCHLIST STARTED.Keep the old lists and make a new watchlist every three months.I'm afraid u must do your own research and go on gut feeling as warrants don't always trade logically! To get the feel before commiting any money make a weekly watchlist of short term warrant u would trade and see how well u do.,include GAIN SINCE START.GO TO STANDARD Help and education on the left of this page ,learn about the terms,and if possible attend one of the excellent free courses presented by the bank.Seperate watchlists for longer dated warrants are also a good idea.Hope this helps.
I wouldn't limit myself to warrants only, there's other good opportunities as well. Use the next 6 months to do some pilot testing wiith real trades & make sure your knowledge is up to par. Consider whether your gains should meet overall objectives in the long run. Best of luck & please keep posting re: your progress.
Thanks guys for the responses. I am not asking for tips. I can do my own research. All I needed was if anyone could advise me on what is the best way to choose stocks. Do I for example pick 5 stocks & trade them for a while until I can add more. But I think the idea of a watchlist will work for me. I am choosing warrants because I enjoy them. I know most people avoid them maybe because they have been told that they are high risk. I believe every business is risky & becomes more risky if risk is not managed properly. I think risk management is very important in trading.
Some reflections on your intentions:1) i,ve found that warrants are best to trade in volatile situations such as a rapid price rise or fall,fast changing exchange rates etc.When the market is stable there is very little to be made and time decay eats into your profits. 2)Remember sell in May and go away,market usually falls as northern hemisphere goes on hoiday.3)i stick to RESOURCES such as AMS,IMP,AGL,SOL,SAP,HAR,GFI,ANG as industrial shares usually show only steady growth or decline over longer periods.4)i'm only an amateur when it comes to warrants although i now get better results,as warrants are only 15% of my entire portfolio.5)TO MAKE A LIVING WITH WARRANTS IT IS NECESSARY TO ALSO TRADE PUTS AND THERE IS NO BETTER TEACHER THAN SIMON PATEMAN BROWN OF SA WARRANTS.6)At odd times banking shares should be be included in your trades,but at present they have the cloud of legislation hanging over them.
ye right I want to be a specialist in Anesthesia which will take me 12 yrs (6 yrs + 2 yrs MBCHB degree + comunity service, 2 yrs diploma and 4 yrs MSc) how cool can that be and trading is very cool with the right attitude.
do u trade forex- Mr/Mrs or miss up, i love trading forex.thats one game that keeps u going.its fast and quick money in or out.just need that final touch for me to complete my final approach and i should reach the figure i desire.so lets hear if this person got that missing link.