Friday, September 25, 2009

STI Warrants Trading Tips – Part 4

Have you been trading STI Warrants? Making Money?

Hmm... it is now a sure win trading game for me! I recently discovered a sure win trading method. Like Sun Tze Art of War: Know Thy Enemy, Win 100 Battles! “Pai Fa Pai Chung”! Huat Ah!

What's my secret weapons?

  1. Time: Using reliable technical indicators to tell me in advance when STI will begin to decline or advance. My focus is on Put Warrants cos I know what is the likely market direction going forward. Then based on the weekly/daily forecasts, I know the likely market direction also.
  2. Knowledge:

    • Market direction
    • STI Trading Range for the Day
    • Best Warrants: As you know, I like SGA warrants, now there is one trading 5-6 STI points per bid (at 0.05cents).
    • Calculate STI value: the break point where the price will increment.
    • Monitor regional indices which influence STI direction: HSI, SSE, Nikkei
  3. Patience: Wait for the technical indicators to give me the buy signal. Do not enter too early, enter at the right time and right price. When to exit? I'm happy with just 1 bid, any extra is a bonus!

  4. Courage: Courage to buy when the signal is confirmed, with Knowledge!

Items 1-4 sound familiar? Yes, these are the 4 Keys to Success that I put into practice.

Haha! I'm happy with 1 bid profit per day. With 50 lots of Put Warrant at 0.05cents profit=$250 less $100 (brokerage&fees)= $150 profit. If Mr Market wants to give me more than 1 bid, that's a bonus to me! Huat ah!

What is one of my most important secret weapon? Know the STI Trading Range for the Day! Want to know how to do this?

Lookout for my next article: “Trendlines Make You Rich”!

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