GF Securities Liu Siling
The biggest risk of investing in warrants is that the warrants do not have exercise value before expiration, and investors will lose all funds to purchase warrants. Therefore, before buying warrants, investors should be clear about their maximum acceptable losses, and determine the size of investment amount according to their acceptable risk level to ensure that the amount invested is not more than their maximum acceptable losses. It is particularly important to remind that investors should not invest in warrants by using daily living expenses, and even more should not borrow funds to buy and sell warrants, because the warrants themselves have a leverage effect. If you borrow money to invest, the risk will increase exponentially.
comparison shares With a daily limit of 10%, warrants have more room for fluctuation. For example, Guoan Warrant has been listed so far, with a maximum of 26% and a minimum of 16%, which shows that the warrant allows a larger range of fluctuations. And for some out of price warrants, it may even rise up and down to 100%. In the case that the price change of warrants is more sensitive and violent than that of regular shares, investors' operational ability should be considered to determine whether they can obtain returns on warrants. If investors can capture the market situation and have a high accuracy in looking at the market, they believe they can get good returns.
In addition, due to the leverage effect of warrants, and the fluctuation range of warrants is greater than that of stocks, investors are required to have decisive psychological quality to strictly guard against erosion and profit. Psychological quality is directly related to stock age. When implementing investment decisions, investors with good psychological quality are not easily affected by external factors and can relatively follow their own consistent operating habits. On the contrary, investors with poor psychological quality tend to be hesitant, unable to trade decisively and often miss opportunities. Investors can judge whether they have the psychological quality of appropriate investment warrants by observing their usual operating habits. For example, do you often chase warrants? Do you often leave in a hurry for profits? There was no opinion on the positive shares originally, but the opinion changed after holding the warrants, and so on. These behaviors indicate that investors' mentality is easily affected by their positions, and their psychological quality needs to be improved.
Sina statement: The content of this article is purely the author's personal view, only for investors' reference, and does not constitute investment advice. Investors operate accordingly at their own risk.
