put versus call warrants

[WES]

I promised myself long ago, I will never trade put warrants again....I broke that promise a two weeks ago and the last couple days was a nightmare. Puts are negative and draining...I will not break that promise to myself again.

[janne]

Commiserations, I had the same experience already in 2006 after the SBK warrants course. If one later look closer at the number of trades and their value, even the blue chips like agl, sol, bhp as well as indexes topi, stx etc. they are too illiquid and risky for an individual trader. Today is no exceptions, even as the most of the above stocks turned sharply down, one sees only a few trades. Some charts are nonexistent, how someone can do TA with 10+ indicators (e.g. powerstocks)on it is beyond me. Yeah, some puts did 40percent today, but one has to look at the bottom line after the whole exercise.

[#3]

you are not supposed to do your TA on the warrant, but rather on the underlying. But the liquidity is a massive issue, because it makes your stops completely useless. I will continue to speak out against these instruments, until such time as stoplosses are set on the underlying price, and not the warrant ruling, like with all other leveraged instruments.

[#4]

Put stands for Poison. It will kill you. The stress does not equal the profits. In anycase, what kind of sick mind would bet on bad things? Most probably a greedy one.

[WES]

Makes a lots of sense what you guys are saying ....thanks

[Wealthclub]

I have also learned that quite sometime ago, however I think if you still want to short and like the gearing, I sometimes short on SSF. What is your take on this? Shorting with a Single Stock Future

[prancing_horse]

I short via SSF, shorting is not my favourite pass time, I normally go short if a shares moves more than 10% over 2 days, and them must be a very liquid one, so an exit is no problem if things go pear shape.Long term the vast majority of shares move up, so going short I believe is only for a quick "snatch and run".I've been trying to tell my brother that for some time, he is beginning to learn, but it's been costly.