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Equity warrants should be traded with a short-term view. The ideal time frame for trading them is somewhere between one to fourteen days. They can also be successfully traded on an intra-day basis but this usually requires a large amount of trading capital.
I trade Equity warrants on the following ten shares
| ANZ Bank | ANZ |
| Commonwealth Bank | CBA |
| National Aust. Bank | NAB |
| Westpac | WBC |
| BHP Biliton | BHP |
| Rio Tinto | RIO |
| WMC | WMC |
| AMP | AMP |
| News Corporation | NCP |
| Telstra | TLS |
I trade the Equity warrants over these ten shares because they are the most liquid call warrants of all. I find that if you are going to trade warrants it is best to stick with the most popular ones. They usually have a tighter bid/ask spread which means that you usually get a fairer price when you trade them.
Below is a list of indicators and oscillators that are useful for trading Equity warrants.
Moving Averages 5 - 21 Day
MACD
RSI
Stochastic Oscillator
Williams%R
Trend Lines
Support & Resistance Lines
Chart Patterns
You should first identify the stocks that you want to trade Equity warrants over. You should then back-test all of the different indicators on the charts of these shares, using several years of previous data, to find a combination (no more than four) that seem to work well together. Keeping in mind that no indicator is going to be right every time. Also refer to the page Warrant Trading for more information.
Index warrants should be traded with a short-term view. The ideal time frame for trading them is somewhere between one to fourteen days. They can also be successfully traded on an intra-day basis but this usually requires a large amount of trading capital.
Below is a list of indicators and oscillators that are useful for trading Equity warrants.
Moving Averages 5 - 21 Day
MACD
RSI
Stochastic Oscillator
Williams%R
Trend Lines
Support & Resistance Lines
Chart Patterns
You should then back-test all of the different indicators on the chart of the S&P/ASX200, using several years of previous data, to find a combination (no more than four) that seem to work well together. Keeping in mind that no indicator is going to be right every time. Also refer to the page Warrant Trading for more information.
Instalment warrants can be traded with a short-term or long-term view. The ideal time frame for trading them is somewhere between one week to several months.
I usually trade Macquarie IMC & IMD Instalment warrants because they are usually the most popular Instalment warrants on offer. If both IMC & IMD are offered on the same share then I usually trade IMD because it offers better leverage.
| Series IMC | Series IMD |
|---|---|
| AMP, ANZ, BHP | AGL, AMP, ANZ |
| CBA, CML, CSR | ASX, BHP, BIL |
| FGL, FXJ, LLC | CBA, FGL, LLC |
| MAY, MIG, NAB | NAB, NCP, QAN |
| NCP, NRM, ORI | RIO, STO, SUN |
| QAN, RIO, SGB | TAH, TLS, WBC |
| SRP, STO, TLS | WMC, WPL |
| WBC, WMC, WOW |
Below is a list of indicators and oscillators that are useful for trading Equity warrants.
Moving Averages 10 - 50 Day
Multiple Moving Average
MACD
RSI
Stochastic Oscillator
Williams%R
Trend Lines
Support & Resistance Lines
Chart Patterns
You should first identify the stocks that you want to trade Instalment warrants over. You should then back-test all of the different indicators on the charts of these shares, using several years of previous data, to find a combination (no more than four) that seem to work well together. Keeping in mind that no indicator is going to be right every time. Also refer to the page Warrant Trading for more information.