Hi all I know warrants are dangerous instruments... My first exposure was an expensive lesson, mainly because I had not much of a system and was swept by the sentiment... However, I've found that buying a call warrant on the TOP40 (no PUTS, the market generally increases... or has been, at least, we haven't had a true bear since what? the 1970's??) with a distant expiry date (thus low decay), at least >50c (silly, I know..., but you get what you pay for) and you time your warrant on the 200DA and momentum, you generally make money. I also have a stop-loss at (20%-30%) below and I increase it to the previous low (as long as it remains within my 30% margin), once we make a higher low. This must be the silliest and simplest system that anyone uses, but it really works (FOR ME!!)... I was wondering if anyone else was using something similar or am I playing with fire... (or are we all playing with fire. *grin*)
