AAR & TOL 02 (Nov 08 - Jul 09)

[kennynah]

i absolutely agree with your observation above...especially reminding myself, i am not savvy at all with futures products...cant yet piece all the details together to form any useful knowledge to trade it comfortably...i am hoping to hear and learn more from forummers on futures trading...

[sidney]

i absolutely agree with your observation above...especially reminding myself, i am not savvy at all with futures products...cant yet piece all the details together to form any useful knowledge to trade it comfortably...i am hoping to hear and learn more from forummers on futures trading...

SGX and other brokerage firms are launching extended settlement contracts soon in early 2009. I think it is a type of futures contract whereby the kickstart would be liquid blue chip counters. Probably first futures trading contract in Sgx... I think rather complex product..

[kennynah]

i wont bother with it...for one, i am absolutely sure liquidity would be an issue.

[b0rderc0llie]

The extended settlement contracts will be useful for going short on individual stocks. It is a futures on a single stock.

[kennynah]

if this is single stock futures...then it is not new in sgx, right? if so, liquidity is not so much an issue here, as these SSFs will track the underlying stock...however, what would be an issue will be the market makers bid/ask spread, which can widen siginficantly as and when the market makers decide so...disadvantageous to I/T....

any thoughts?

[b0rderc0llie]

The SSFs were implemented before, but did not work out last time. Now, they changed the name to extended settlement contracts.

I'm not sure if the bid/ask spread will be an issue. We can go long or short, and the contracts are settled physically, by way of the delivery of the underlying security, upon expiry of the contract.

[kennynah]

ok thanks....it can serve as a hedge tool.... undoubtedly, this will make I/T in stocks even more complex for the less educated since futures can and will impact the price of the underlying (and not the other way around)

do you know what interest rate component they will use in their calculation of futures pricings here in singapore? sg bonds coupon rates?

[b0rderc0llie]

I do not know what interest rate component they will use. Let's wait for the contracts to be implemented and see how they trade.

[kennynah]

ok...i wait for your objective assessment since i am almost certain...i will give this a miss...

[winston]

TOL:-

How does one know when to hold and when to fold ?

1) Using OHLC charts to identify one day reversals ? Useful but that means I've to give up the gains for day

2) Using charts to see Support and Resistances ?

3) Using charts to figure Market Direction ?

4) Trailing Stop Loss ? What Percentage ? 2% or 7% or 25% ?

5) Feel ? Very scientific