Category: Money tips Release Date: 2006-08-14
Invest in warrants, and invest in stocks 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. Warrants the investment is different, the value of warrants will be reduced over time, passive position is often worth the wait, if you can not row after the expiry of rights, warrants will be worthless.
Therefore, investing in 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 enthusiastic vision of 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.
So, what warrants investment in skills it stop?
The maximum price drop method: As the warrants investment is a super-short-term investments, therefore, the drop rate for the highest price the stock can not be the usual 5% or 10%, etc. to set up, but to reduce the proportion of generally about 3% The drop rate as the disk stop-loss standard.
Trends tangent method: This method mainly based on intraday time-sharing trend, to determine an effective price below the trend line warrant to locate and stop. When the share price effectively break point line Gann 1 × 1 or 2 × 1 line, below the rise in stock prices and effective channel for the next track or below the rising trend line, should be to stop operation.
Morphological Stop Law: Warrants Price break head and shoulders top, M head, circular head shape neckline top and other places, or stock gapped down to a breakthrough gap there should be decisively stop. Note that, due to the C of E is a super-short-term operation, the above form refers to the time-line forms.
K-line stop-loss method: This method also made reference to the C of E K line to the use of time-sharing, when the time-K Line is a two folder Yin Yang, Yin Yang Yin after two of "short gun", or the emergence of a Yin-off three lines "decapitation guillotine," and an "Evening Star", "engulfing", "Shooting Star", "Flying Crows," "dark cloud cover", etc. A typical peak K-line combination, should be carried out Stop.
Stop moving average method: In the warrant the use of time-K line, when the warrant more than 15-minute lines have been below average, investors need to implement the stop-loss operation.
