CANSLIM & Momentum Investing 01 (May 08 - Jul 09)

[winston]

Hi A,

There's a DBXT S&P Short ETF listed in Singapore.

Take care,
Winston

[millionairemind]

Hi A,

I will usually short the SP500 futures and Singapore index stocks via CFD.

But my shorts will not be large, cos' I am not very good with shorting. Perhaps 1/3 of my cash positions will be in shorts when market breaks.

Heck! I am not good with LONGs oso.. haha...

Cheers,
mm

[b0rderc0llie]

Hehe miilionairemind, not good with shorts and longs? Reminds me of Jim Rogers who I saw on CNBC yesterday, and he said that he is the world's worst trader. He is doing pretty well, I think, and so are you

[Aspellian]

Thanks winston and MM.

How about buying put options? eg. when market in a upturn, certain put options of index stocks will be heavily battered and may lost up to 80%. So when market is down (index stocks down), these put options theorectically should rise in price.

But the risks will be time expiry of options, illiquidity, market makers not providing the accurate/"fair" quotes. Are there any particular reasons/evident risks why put options are not widely used as an option to "short" market?

[winston]

Sometimes, I trade Put Warrants in HK. There are also Bear Put Warrants in HK, which is more volatile compared to the normal Put Warrants. Very dangerous ..

I trade thru UOB Kay Hian in Singapore and they dont allow warrants trading thru the internet

I have the Lyxor S&P Short ETF that is listed in Spore. Underwater now for some time ..

[Aspellian]

I have the Lyxor S&P Short ETF that is listed in Spore. Underwater now for some time ..

Hi Winston,

I only can find DBXT S&P Short ETF on SGX website but not Lyxor S&P Short ETF.
But anyway thanks!

I am using Lim& Tan, no problem in buying warrants over internet.

Hi MM,

any reasons why you dun buy warrants to "short" market? I am exploring the various options and keeping an open mind. realise the more i know, the more i dunno about investing (or about everything else!!!)

[millionairemind]

I have found that warrants in Singapore are priced at the mercy of the market maker and generally illiquid.

I got a friend who trades US options and he has complained many times to the market maker on the pricing of warrants on SGX but to no avail so he gave up on Singapore warrants.

[b0rderc0llie]

How about buying put options? eg. when market in a upturn, certain put options of index stocks will be heavily battered and may lost up to 80%. So when market is down (index stocks down), these put options theorectically should rise in price.

But the risks will be time expiry of options, illiquidity, market makers not providing the accurate/"fair" quotes. Are there any particular reasons/evident risks why put options are not widely used as an option to "short" market?

I use the simsci futures to short the singapore market. To go long on put options or warrants requires us to be correct in both the direction and the time frame. If eventually, we are correct and the market goes down, but after the expiry of the option, then it will still be a loss. Using futures or short ETFs, we can decide to hold as long as possible or cut loss whenever necessary.

As I am accumulating short positions when the market is in an upturn, I need to wait until the market reverses before I can profit, so a futures position which I can rollover and hold for as long as I like suits me fine. If you are riding the trend, and wait until a downtrend is happening, then longing put options is fine, as you do not need to be concerned about the time frame. If the market does not go down, just cut loss instead of waiting for the option to expire.

[winston]

Sorry, I meant to say DBXT S&P Short ETF.

I was watching the Lyxor Commodities ETF so was stucked with the Lyxor name ..

[winston]

Hi A,

There's also a "Warrants" thread, a "Short-Selling & Buying Puts" thread and a "CFD" thread in the "Other Investment Ideas" section.

Take care,
Winston