Tuesday, October 28, 2008

Volatile Market

The stock market yesterday was really bad.

As for the paper trade that I was talking about. The value of the STI 1800BNPeCW090330 is now 0.18, meaning a paper lost of around 26.5%. This is quite a big sum of $$ to lose within a week end.


So far the jumps in the indexes are all crazy! In the past any rise/drop of more than 3% is considered to be big. But nowadays, jumps for even 10% occurs. Hence if you were to play around with index warrants, you could either make lots of $$ or lose lots of it! Hence please trade within your means.

In general, going long in a good company would be the best way to investment, but that does not mean a little short term trading will do any harm. For example, since the market is dropping so steadily, a small punt in index put warrants might make you some extra bucks. However please note that you should do your homework 1st, and not buy when they is a high chance of a rebound, hence losing $$ on your put warrants. And once again, only punt with cash you can spare!

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