Posted by henry888 > 2018-10-27 05:52 | Report Abuse

Warrants are tricky and most of the times investors get caught. In most cases, warrants are over-priced. As adducing from my experience of observing style of price movements, warrants usually move faster than mother shares. That is how investors might get caught when they buy the warrants when price of mother share dropped and when price of mother share up, price of warrants are not moving and this is particularly so when warrants are going to expire. But advantage of warrants is with small capital, you can invest in a blue chip and conversion at later times when you have enough capital and the price of mother share is worthy to convert. However, i will not prefer those warrants on 'cash settlement' basis and with maturity date in less than a year (so called the called warrants). These called warrants are alike casino type and terms and conditions are in favor of the issuance banks and should not be promoted in Bursa. Note : just my own opinion only without prejudice to relevant parties.

Posted by lizi > 2018-10-27 07:30 | Report Abuse

If stock also cannot make money, forget about warrant...this is the usual advice i give to people who ask me about warrant.

Posted by mansaham1972 > 2018-10-27 09:24 | Report Abuse

Bukan saja waran yg menjunam teruk tetapi mother pun semua hancur .skg cuma cari peluang terbaik utk dpt balik untung dgn ambil peluang bila trend waran menaik di lain masa..semua pelabur terbakar skg.

Posted by Alex™ > 2018-10-27 09:37 | Report Abuse

Btw due to depressed market condition, I now offer rm1k subscription fee only

Posted by lizi > 2018-10-27 09:45 | Report Abuse

Back to mother share la, mother share can up or not also dont know, how to make money on warrant leh...lol...

Posted by BankNegaraMalaysia > 2018-10-27 13:45 | Report Abuse

Kasi lu capital control your warrants become trash wakakak

Posted by probability > 2018-10-27 14:58 | Report Abuse

wei Syed Sadiq wants you all to give free tips on warrants liao.....

if you ask tips you have to pay....but will teach you freely

now i understood why sifu KC always say:

"there is no free lunch in Bursa!"

Posted by probability > 2018-10-27 15:09 | Report Abuse

only 'free teaching' exist....

Posted by probability > 2018-10-27 15:17 | Report Abuse

Jon, one suggestion as a topic for your next article.....

try to explain what is your justification for having portfolios with 2% capital on a particular stock?

you have almost 2% on every stock...thats like a portfolio consisting 50 stocks!

and if you have 2% on stock X and 2% on stock Y...does that mean your confidence/knowledge or mismatch between your IV calculated vs Price (safety margins) the same on each?

how do you measure your confidence?

Posted by Learner King > 2018-10-27 15:19 | Report Abuse

Only pandai tulis...after write so long than admitted ownself dunno anything. As usual stupid choivo... kakaka

Posted by probability > 2018-10-27 15:22 | Report Abuse

and why 2%....why not 0.5%?

Posted by newbie911 > 2018-10-27 15:30 | Report Abuse

When u will conaider cut loss? Or will hold until out of value?

Posted by Jon Choivo > 2018-10-27 15:35 | Report Abuse

Probability,

My number one stock is 33%. Number 2 is 20%. Then a few is 3-10%.

Top 3 is 60% of portfolio.

Those below 3% or 2% or less.

Is those where i think its a good buy, but i'm not as confident, and still thinking, or building up position.

Or one of the great net asset plays. Were i usually buy 1% to start, than average down up to another 2% in stages, say 0.5%, 0.5% etc. Usually i keep a maximum of 2-3% in one individual net asset play, unless its fantastic, than maybe abit more.

There are like 10 or so of them, which make up more than 25% of portfolio.

These days, don't average down so much, because everything is so cheap. Too many other options.

Here is an extract on diversification i really like.

https://klse.i3investor.com/blogs/PilosopoCapital/163383.jsp

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Posted by probability > Oct 27, 2018 03:17 PM | Report Abuse

Jon, one suggestion as a topic for your next article.....

try to explain what is your justification for having portfolios with 2% capital on a particular stock?

you have almost 2% on every stock...thats like a portfolio consisting 50 stocks!

and if you have 2% on stock X and 2% on stock Y...does that mean your confidence/knowledge or mismatch between your IV calculated vs Price (safety margins) the same on each?

how do you measure your confidence?

Posted by Jon Choivo > 2018-10-27 15:36 | Report Abuse

Depends if you're investing or trading i guess.

Layhong warrant for example, i really like it, so as it falls, ill buy more, but in stages and not more than 3-4% of portfolio.

waiting for 10 or so before i top up i guess.
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Posted by newbie911 > Oct 27, 2018 03:30 PM | Report Abuse

When u will conaider cut loss? Or will hold until out of value?

Posted by Unlevered > 2018-10-27 17:14 | Report Abuse

If a warrant has high premium, does that mean the market expect the mother share to have high probability of going up. My thought on warrants trading at discount is that mother share might be overvalued. What do u think Jon?

Posted by Bapaklangkau > 2018-10-27 17:17 | Report Abuse

http://www.theedgemarkets.com/article/bnm-governor-wants-option-use-capital-controls-%E2%80%94-ft

Capital control come everything die !

Posted by Jon Choivo > 2018-10-27 17:26 | Report Abuse

I'm probably just as inexperienced as you, but lets try and learn together.

Alot of it depends on the market sentiment i guess. If its a bull market, it could be that people expect the price of the mother to further go up.

If its a bear market, the mother may have fallen too fast for the warrant to catch up, or the mother have fallen below conversion price.

If there's a discount, chances is its overvalued. But some warrants, if you got the time, you can go and buy it, convert it and sell the shares. The process however takes sometime and cost a certain amount, so, it may not tighten as fast.

But alot of time, if there's a discount, its often because its not within the general radar as well. GAMUDA-WR back in the day fell in that category, before OTB and some others raised attention to it.


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Posted by Unlevered > Oct 27, 2018 05:14 PM | Report Abuse

If a warrant has high premium, does that mean the market expect the mother share to have high probability of going up. My thought on warrants trading at discount is that mother share might be overvalued. What do u think Jon?

Posted by 3iii > 2018-10-28 08:20 |

Post removed.Why?

Posted by 3iii > 2018-10-28 08:28 | Report Abuse

Tips for investors in warrants


FIRST, investors should never invest all their investment capital in warrants.

Generally, we do not advise them to invest more than 10 per cent of their total investment capital in warrants due to the high-risk and high-return nature of warrants.

Retirees should also not use retirement funds needed to maintain their lifestyle to invest in warrants, as they generally have a lower risk tolerance.

Investors should also be disciplined about taking profits and cutting losses

Posted by 3iii > 2018-10-28 08:36 |

Post removed.Why?

Posted by 3iii > 2018-10-28 13:31 |

Post removed.Why?

Posted by 3iii > 2018-10-28 13:38 |

Post removed.Why?

Posted by Icon8888 > 2019-12-28 19:41 | Report Abuse

Nonsense article

The author is a confused mind

Posted by cheoky > 2019-12-28 22:34 | Report Abuse

digging wrong way on warrant.

if mother is gonna uptrend, you should find its underlaying warrrant to own. leveraging return betting on this. nothing else.

seeking undervalued warrant is wrong. downtrend apa undervalue and time frame warrant pun koyak.

so the question how to determine the uptrend. that is the question to ask. howard marks said i twist, speculating is not easy.

my eye sight weak recently play too much games...

Posted by Connie555 > 2019-12-29 07:43 | Report Abuse

Deng lan him mm sun....

Stop lar please, while your so called investment cant even make you money and you still at there fucking people up about investing and trading.

Look where is your petron now? Where is MBMR now.....still sustaining....dont you feel ashame when you scolded Commonsense for frying share la this la that lar........

want contribute idea, u contribute but dont at there act professor yet cant beat to market. tell me hornestly this year hw much return u made...


...............................................
Choivo Capital: Depends if you're investing or trading i guess.

Layhong warrant for example, i really like it, so as it falls, ill buy more, but in stages and not more than 3-4% of portfolio.

waiting for 10 or so before i top up i guess.

Posted by Connie555 > 2019-12-29 14:34 | Report Abuse

U never live that long to go thru bad yrs such as 1998 asia financial crisis i dont think you have to right to even ask people it depend on whether u r investing or trading...seen too much of people like you back in the days. lecturing me NTA ROC....at the end what happen? sold sunway at the bottom and now never come bck to share market anymore.

kid u nvr been thru things lidat u better shut the fuck up, i think if that happen again in the furture u the first one to run.

Posted by newbie911 > 2019-12-29 18:00 | Report Abuse

Jon, mind to share us ur portfolio review 2019 and total roi? Thanks