I back to "value" bb trading 5 5 4

I back to "value" bb trading

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20110326

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I back to "value" bb trading




lately i miss so much profit opportunity to the extend lost in certain battle such as pchem and dialog....

now my mind is clear...

1. i cant go for high premium bb
2. i cant go for too high conversion ratio bb and at the end we will stuck
3. i cant go for too stagnant mom...such as bjtoto..else i end up impatient and emotion will take charge and i end up sell at cost or lost
4. i cant go for too low liquidity bb...low volume is ok such as ammb ch
5. i will not avoid osk for long for as long as i cautious cautious cautious...osk just did their job..who don want to knock down other...?

a. my bb watchlist now all make up of premium not more than 5 to 6%, those out of the range i delete and airasia cl is the last i enter, why bb become insensitive and to the extent mom up bb down, the main factor is premium, higher premium mean mm in upper hand to control, lower premium mm cant do anything such as bursa cp or drb cc cb. so why we want other to control us?
b. my bb watchlist preferably with as low conversion as possible, cause only low conversion and low premium are those most active and most sensitive bb cause we buy the call not put warrant. if market down, why should i enter anymore?
c. maturity is not that matter for as long as premium is near zero and market sentiment remain positive but of course need to pay extra cautious on those less than 20 days left bb.
d. i will remind myself low price not necessary mean good bargain, sometimes it's higher price bb with low premium and ratio that flourish but not those low price high premium high ratio lousy bb.

so from now on i hope i am discipline and clear...back to the basic warrant slection criteria.

Again, i wanna go back to my previous value bb trading, else i may end up complain too much and in fact nothing to complain if i don make a wrong move. Cash Clap Thumbs Up

Guest
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I back to "value" bb trading :: Comments

Post on Sat 26 Mar 2011, 22:35 by sun

learnt something old and new again, tq for sharing MAx sifu

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Post on Sat 26 Mar 2011, 22:35 by sun

1 rep

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Post on Sun 27 Mar 2011, 00:53 by WinningHeart

thanks Max sifu for the sharing ... +1 rep
i'm only having 1 bb now .. BURSA-CP ... hope mom will continue the uptrend

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Post on Sun 27 Mar 2011, 01:27 by 8888

bernardlcn wrote:thanks Max sifu for the sharing ... +1 rep
i'm only having 1 bb now .. BURSA-CP ... hope mom will continue the uptrend


Thanks max sifu...

yeah continue uptrend...

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Post on Sun 27 Mar 2011, 09:50 by Guest

When buy high premium bb, high premium has two type, one is real high premium such as more than 10 to 15%, one is hidden type with "lower premium %" such as bjcorp cc and bjtoto cg, the latter type can be very explosive in gain, but also very risky if happen mom not moving cause mom price is less than exercise price mean bb trading at 100% out of value (Bjtoto-cg) or bb trading at 30 to 60% premium compare to bb worth such as bjc cc 0.06 market price over 0.035 0.04 actual worth

1. we don know exactly the bb direction, even mom up bb still holland, past good example and case study is dialog, drb cd ce, airasia cl, so what for we want this kind of deal as we may have better deal for other bb for us to enter

2. high premium bb tend to chiong very less compare to mom and might as well we just wait and wait and wait till bb reach sensitive premium% then we enter? case study drb cd ce, drb cd trading at 0.145 when mom 1.95, now mom 2.16 but cd only 0.165, meaning mom chiong around 20 cents cd only moving 6 cents after conversion and the same roughly go wth ce as well. for cc and cb, the relationship is almost direct, cb chiong from 0.41 to 0.52 level or around 22 cents chiong after conversion. in term of % gain, cd is less than cb and ce is at par with cb, but cb chiong is more predictable, lot more predictable than cd ce. again what we want is predictability so that we can plan and avoid being trap capital or even losses.

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Post on Sun 27 Mar 2011, 09:53 by Guest

i regain much of my confident now and i know what i want, what i want to trade....still plenty of gold there. market sentiment become better and better, so we expect bursa the whole next week may chiong chiong chiong...the best time to exit market i think is thursday...friday might go down and we buy back Giggle

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Post on Sun 27 Mar 2011, 15:52 by sun

Max sifu, thanks for sharing

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Post on Mon 28 Mar 2011, 00:26 by ejam77

good to remember Max!...thanks

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Post on Thu 12 May 2011, 07:29 by 8888

Thanks sifu for the sharing.. Noted.

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Post on Thu 01 Dec 2011, 18:40 by maxims

bump

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Post on Sun 05 Feb 2012, 17:01 by Cals

bump for good bb relationship study post

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Post on Sun 05 Feb 2012, 22:01 by phoenix777

pak cals rest leh....go jalan2

holiday mar

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Post on Sun 05 Feb 2012, 22:07 by Cals

keja keja no PH for me Worried

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Post on Sun 05 Feb 2012, 22:17 by thk

Cals wrote:keja keja no PH for me Worried


And worst, no trading Giggle

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