Pacific Andes warrants

Price : 0.125 
Excerise price:0.23
CD: 1st feb 
I bought 7 lots of pacific warrants
price 0.355

Golden Agriculture Warrant dec 21/2010

signs of weakness immediate support 21.5 cents if it breaks 19.5

My Stocks Dividends

	Price	CD date	XD date	amount
			last year
courage ma	0.18	3-Apr	3-May	0.006	3%
Aimams Reit	0.22	12-Jan	12-Feb	0.0039	1.80%
Saizhen Reit	0.16	6-Apr	6-May	0.0026	1.60%
First Reit	0.69	28-Dec	28-Jan	0.019	3%

Cfds VS Warrants VS Stocks

Cfds VS Warrants VS Stocks


We have an ongoing discussion on differnences on CFDs, Warrants and Stocks . The former 2 are leveraged products where the latter is a non leveage product.
And a dear friend also suggested mr to do a write up on the case.

Leverage products are products that allows you to purchase stocks and equities at fraction of it's total cost

For instance, mr x uses 1000 dollars in warrants or cfds (leverage 5 times) : meaning he can buy up to 5000 dollars 
Of stocks 

Stocks bought with leverage 
= price of warrants x number times leverage
= 1000 x 5= 5000 dollars

Advantages :
This means if the stock rises by 10% 
Mr x would have made 
5000 x 10% = 5500 
Mr x will have made 500 from 1000 dollars investment . So he will have 1500 dollars from selling his warrants .
5500-5000 =500

% profit = (1000-500)/1000 x 100
= 50%

As compared to non leverage , 
Profit is only 10%
1000x 10 % = 100

Profit difference of trading warrants to stocks  = 400 dollars more ! 

Disadvatages  

On the double edge sword ,if the stock drops by 10% 

Warrants and cfds will lose 50% of it's capital . mr x will lose 500 dollars from the 1000 he invested . 
So he will left with 500 dollars if he sold the warrants

If he bought 1000 of shares  he would only lose 100 dollars 

1000 x 10%= 100
1000-100= 900

Thus leveraging is a double edged sword . You can both manigfy your lost and gain .



  

I love gaps :)

In candle sticks can any one tell me why we love gaps ?

sold agri 14 lots realized $610 gain

			Aldwin Chan as in 8/12
Dr
Date	stock	Quantity	Price	paid	Current price	Current value
19/11	First Reit	2000	0.704	1408	0.735	1470
22/11	Golden ari W	10000	0.175	1750	0.21	2100
24/11	Golden ari W	10000	0.16	1600	0.21	2100
		3000	0.704	2112	0.735	2205
	Total stocks			6870		7875
	Profit		1005
	Profit-brokerage		865
Cr
Cash		0
Owner Equity		6870
profit		755
			Aldwin Chan as in 8/12 sold agri
Dr
Date	stock	Quantity	Price	paid	Current price	Current value
19/11	First Reit	2000	0.704	1408	0.705	1410
22/11	Golden ari W	6000	0.175	1050	0.21	1260
	Total stocks			2458		2670
	Paper Profit		212		Realised
	Profit-brokerage		62		gain	610
Cr
Cash		0
Owner Equity
profit

dec 8

			Aldwin Chan as in 8/12
Dr
Date	stock	Quantity	Price	paid	Current price	Current value
19/11	First Reit	2000	0.704	1408	0.735	1470
22/11	Golden ari W	10000	0.175	1750	0.21	2100
24/11	Golden ari W	10000	0.16	1600	0.21	2100
		3000	0.704	2112	0.735	2205
	Total stocks			6870		7875
	Profit		1005
	Profit-brokerage		865
Cr
Cash		0
Owner Equity		6870
profit		755