Seeing the listed Warrants on the SGX website reminds me of a story on how Warrants can make or break. By the way the story's lead is me...hahahaha....anyway I did quite a lot of research on a few companies that have very high volume for their warrants back then...including DBS, Capitaland, Semcorp Marine etc.
My first trade of warrant, I pocketed a net profit of 2K from a DBS warrant offered by Deutsche Bank. My second trade was Capitaland's warrant....profited another 2K....another Capitaland for my third trade...yet another 2K....and all these was earned within a month or I should say three weeks....I was excited by the high returns....so I bought SemMarine warrants thinking the good outlook for the company will push the warrants sky high....but disaster struck and the market was due to a huge correction....blue chips went way down..and due to the gearing effect..the warrants fell big time.I was at a loss whether to minimise losses or to wait for post-correction. The decision has to be made FAST because the warrant was going to expire soon!
I made a wrong move and i waited....within 3 weeks or waiting....I lost 6K which offsets all my efforts for the past 3 trades! I was very frustrated that all my hard work went down the drain. But well, its was a good lesson learnt.
An analogy: If the small fishes want to swim slowly and steadily, they take the calm seas. All is peaceful but takes longer time. If the small fishes want to swim further faster, anticipate the big fishes and swim with them through the stormy seas. But when the big waves come, the big fishes live, but all the small fishes will die.
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