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Sunday, December 25, 2016

One Morning One Night in Bursa, EG, Hang Seng Call Warrant, Biohldg, Prolexus, Superlon, Bioalpha

My chinese friends said 一朝一夕 means one morning one night. It means very short period of time. In stock market investment (not trading), the result is not 一朝一夕. That's why many people have given up. Every day look at the screen and feel sad asking why their stocks prices didn't go up and some were down.

We must remember investmemt is not 一朝一夕 yī zhāo yī xī. In cantonese it is pronounced as YatJioYatJic.

Many days ago saw many Hang Seng HSI call warrants suddenly dropped a lot. For sure there will be a lot of losses. Be careful of trading in call warrants especially HSI because of huge premium and you are fighting against time.

If you buy call warrant C hoping market good you make money, and you buy put warrant H hoping to make money when market down, yes sound very easy. BUT, but and but there is something called premium. Most of the call or put warrants are trading at a huge premium. The prices will continue to drop until they reaches expiry, unless there is a very BIG swing up or down in Hang Seng. Another example is C may down 5% a week, but H may up only 2% a week. If you bought correctly you make 2% or 20% for example, but if you bought wrongly you may lose 5% or 23%. Therefore, it is not a 50 50 chance. Be careful.


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