New to the site, decided to join the warrants game quite late in life. How does one practically convert the warrants into shares. I have seen the Exercise price, but what on earth os the Exit/Entry Price? My ex-husband reckons that I can't make money with warrants because I will need to pay for the shares in full when I exercise?Is that true or what? I am confused because I have 2 accounts(1 for Shares, and for Warrants), how does this work exactly? P.S. When I make enough to buy a yatcht, and tell my ex to stuff it; I'll give the best advisor a cut:)
Read my reply to JS2,consider this your first lesson!Much better u attend a warrant course first before trading,your second lesson.Third lesson be prepared to loose up to half of initial Rand u spend ,mind u that focuses the mind,don't expect to make a fortune trading warrants.Try shares and instalments first.
k, when you use words like 'new', 'game', 'confused' and 'yacht' in relation to warrants, it's probably best to wait a while before trading them. Barry's spot on - do the course. In my opinion warrants are [email protected] instruments, there are way better methods of trading with gearing.
Chartist, Barry, Gravy, YNWA, TZ, John, Goldie. the list is long, but the list of failures is longer and in that there is a warrning... to answer your question, you dont have to buy the shares on expiry. Brazen is right trade instalments, offers some gearing, always in the money, and you get the div's..
The STAs have no barriers so I always use them if possible. HotEds from Investec all have barriers. They are usually far away tho, and the Hoteds often give better gearing. Problem is when the sh*t hits the fan, as happened recently, those far away levels approach rapidly. Then you are forced to sell at what is usually the worst time. The smart money buys your nice cheap shares and rides them all the way back up. That's annoying.
Gathering nuts in May, my little squirrel. Buying INL, JDG and IMP on red days, getting a little stash going. Anything below 80 on INL, JDG at around 63, and IMP at 209. Got STAs on JDG and IMP, and contract on INL. Looking at ARL today, not in there yet.
I have an investment strategy that works every time: Buy shares that offer value (small cap, contruction, food presently) make some cash on them . Take cash and buy geared SSFs and lose most of it. Lick wounds, go back to equities. Works like a dream. Yacht, no. That's just a hole in the ocean lined with cement into which you pour vast amounts of money.
Oh golly, you fellas aren't helpful at all. I can't make much trading shares because I am such a small investor. I know with warrants I can gear up my profits and all; I just wanna know how it works in practice
As you've noticed the fellas are helpful but on an advanced level and each follows a personolised stragedy - follow the warrants course under Help and Education (Left on your screen, second line on the menu)