545 days more to go before expiry of ijm-wc.... any suggestion on what to do meantime? palm oil prices have begin to pick up but no signs of improvement on ijm shares... converting to mother shares is a NO GO... as too high cash outlay RM4 for each share... hmmm
ur right tempus_veiros > opportunity loss on dividends and other gains just too big. But I did make some handsome sum doing similar on ijmplant-wa... where returns was more than 35%. I guess warrants are a riskier game than mother shares... an if ur bet is right pays handsomely otherwise... its a drop, with zero income on dividends; not to mention an expiry date for warrants !!!
LOL... yes, quite naturally in hope of a repeat transaction, with averaging out cost approach. Funny thing is that it only needs a few heavy trading days and nudge to see the returns... and the ur off to the drawing board again.
not a good decision to increase the the bet volume after successful trade. you should instead maintain the bet volume or even better , bet on reducing volume ( less leverage ), there are some reasons for it
1) if you increase the bet volume after some successful trades, it only need a failed trade to totally wipe out your profit gained as well as your capital . Imagine, you go Genting,1st round bet RM 10,won & they pay you RM10, 2nd round you place RM20 won & they pay you RM 20, 3rd round you place RM40 , you lose, there goes your winning & your capital.
2) chances for the winning warrants to further hike after some spectacular performance is very slim. warrants trader never pick the winner of yesterday.
hence, i'm in my opinion you should instead reduce the bet size after some successful trade trade
sory I think I mis-communicated the answer. When I say 35% gain, it was AFTER the "wholesale" of shares.... warrants are such that once you accumulate and notionaltarget price is hit, youy sell ....sell all and run.
Then you go back to the drawing board and start working on another new fresh warrant, that is possibly trading in discount or potential discount. I have another too ... gamuda-wd, but I dont think I will see the light of day on this... unless some massive progress is made on the new LRT project. Breakeven will be good enuf.... even for ijm-wc.
barring any unforeseen circumstances, before expiry u should be able to make a profit from IJM-WC. IJM is a well managed company and mother shares would surpass it's all time high is a matter of time!!!
Same with me although it's not this one. It's very tempting to just hold and hold when the counter *appears* to be going up and up. But have to discipline myself and take profits when they come instead of lingering on.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
PaulinaYong
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Posted by PaulinaYong > 2012-08-14 22:54 | Report Abuse
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