Category: Money Tips Date: 2007-02-15
Yesterday tape steadily climbed, while the warrants fell almost across the board, Baosteel Warrants also concluded its doomsday Mile Quotes.
Speculative investment in stock warrants, and there is a difference between the two can not use the same strategy. When investing in stocks, as long as confirm that the stock texture of fine, you can in the long-term hold, even quilt the short term does not matter. The speculation is different warrants, warrants value will decrease over time, passive position is often worth the wait, if you can not row after the expiry of rights, warrants will be worthless.
Thus, speculation warrants need to follow the stop-loss principle, once the stop-loss should promptly withdraw from below and not wait for some sort of relief, or try to cover their short positions through the low share of low-cost.
Warrants investment stop operation of the three main points to note:
First, pre-investment preparation. Stop-loss as a speculative market to control the risk of loss of a powerful tool for enlargement, in particular the implementation process, it is necessary to plan ahead, can not wait until the warrants have peaked decline or loss has occurred before considering what standard should stop, because it is often is too late. Must be prepared prior to investing in warrants out protective measures, and to develop detailed plans and stop-loss stop-loss criteria, the only way to being prepared, once found only when judged decisive mistakes stop, and not in the sudden helpless against the current, but also strain is less than 1:00 will not be deep-set, but does not warrant the declines suffered serious damage.
Second, investment in the stop-loss operation. Based on pre-established stop-loss programs and stop-loss standard, once the warrants forming Powei trend, we must resolutely stop. Because even if the misjudgments, the losses caused by stop-loss tend to be small, but do not stop the result is often the depth of hold-up, eventually leading to a huge loss. Some investors buy warrants always enthusiastically looking forward to the warrants of the profits, but not well prepared to cope with the risk that if there is a loss becomes a loss in operation Shiyou hesitation, and so aware of the stop when the may have been a serious loss.
Third, to overcome the operation of the misunderstanding. Many investors in the warrants of the stop-loss operation, there are some errors, for example, some investors have missed the best opportunity to stop after just does not stop, and this is the right investment in the stock, when the stock dropped to a certain depth of , investors not only do not need to stop, but should also cover their shares even smoothing. But applied to the warrants on the wrong, because the warrants did not stop operation of the "best time to stop," one said that once the decline in the formation we must resolutely stop. There are investors in the stock investments often prefer to bargain-hunting and rebound, but the warrants investment, must not easily adopt a similar method of operation.
