Like many other ppl who trade, the thrill of making huge profits within a short span of time intoxicated me.Somehow is a addiction,like taking drugs,once we get the hang of it ,we cant shake it off.
For a while, i was obsessed in making risky trades and it did reward me well but sometimes i got whack down too.
However it gave me a new perspective on how we should grow our money in a sensible and conservative manner.
I will like to share 2 of my speculative trades here;Genting SP & UPP.
Genting SP,the well known stock for punters.I short(sell first) the stock at $1.77 and cover back (buy back)at $1.74.
A gain of $0.03 gave me a net profit of $2070.45 in a duration of 1 hour and 14 mins.Of course,there are seasoned traders who can earn more than this.Now we move to UPP.
A loss of $0.02 resulted a loss of $2264.21 in a duration of 1 hour.
From above, only one have huge deep pockets to burn,if not the frequent trade that goes against us will make us go bust very soon.We hear a famous quote from seasoned traders "Cut loss fast & Let profits run".There is truth in it but to execute it is not a easy task and it will need a decent capital to absorb the losses.
Hi vin, sorry a newbie here. But I like to ask a question. I thought shorting is not allowed in SGX. But how come u can short genting?
ReplyDeleteYou can short a stock on SGX if you cover back before market closes on that day itself. Overnight short will result in you requiring to do a buy in or you will have to borrow shares.
ReplyDeleteHi floorfilla,to add on to Evilbdboi's reply,the buy in will be executed by SGX on T+3 at 12pm if you don't have the shares in your CDP by the stipulated time/date) and a penalty of $1000 or 5% of the contract value will be imposed for failed trade (means SGX is unsuccessful buying the shares u had short sell).There are highly confident veteran traders deliberate do not cover the shares they had short sell on the same day,even with penalty because they knew the prices of the shares they had short sell will keep on dropping thus resulting in a profits after deducting the penalty,However,this is strongly discouraged.
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