As shared in previous article, I didn’t know what a warrant is and how it works when I first bought it in KLSE.

And I didn’t just buy company warrant, I bought structured warrant.

I wonder how many have had the same experience as I did.

If you happen to have gone through such process, and you don’t mind to share, leave a comment at the bottom.

(I’m just curious)

Back to the title, my first encounter with structured warrant was with BJCORP.

But, my first company warrant was with IFCAMSC.

Again, I also bought IFCAMSC-WA without any clue on exercise price, conversion ratio, premium, gearing etc. etc. etc.

That’s bad and I know that.

For those who have no idea on what those terms are about, you should spend time to learn.

I must say I was lucky.

My first encounter with warrant left me some good impression on them,

As I didn’t make lose because of them, despite the fact that I knew not much about them.

Warrant is really an interesting tool in stock market.

Its nature provides possibility of making huge gain which can easily go up to 100~150%,

When its mother share only rise about 50~75%.

This is the charming point of warrant.

Two quick examples for 2015 are HEVEA-WB and TEKSENG-WA,

And two for 2016 are GENTING-WA and AAX-WA.

I really salute those who had spotted the opportunity to invest in the above warrants.

Personally, I really think company warrant is a good tool.

Yet, its spectacular characteristic that can magnify our gain can also turn against us when mother share drops.

Imagine if you bought GENTING-WA above RM2.00, you would have suffered a paper loss of around 25%,

Despite that GENTING has only retraced about 10%.

So, trade with caution.

Also because of this, there are people in KLSE that don’t prefer warrant that much.

Having said this, it really depends on individual’s strategy.

As long as you can make profit, any way can be a good way.

So, this is my story on getting to know about company warrant.

For structured warrant, I’ll share it in next article.

~Previous article~

P/S: To sharpen my skill, I do share some stock watch in Invest for Life and facebook https://www.facebook.com/investforlife.com.my/.