Power of LeverageOn 13 Feb I noticed that genting was trading near its support line. I bought some shares of Genting. In my previous posts, I already shared some of my ideas regarding genting on 25 March 2009, 23 Feb 2009, 12 Feb 2009 and 6 Feb 2009. In fact, Genting is still one of my favourite stock.
I was so confident that Genting would rebound after sinking to a price last seen on 28 Oct 2008 ( one of the worst day for Wall Street). Instead of just buying Genting shares, i bought 10000 shares of Genting-CN (call warrant) too to increase my leverage on Genting.
Genting and Genting-cn dropped further down before moving upward.
I sold all the genting-cn shares on 2 Apr 2009 as I noticed Genting had already rebounded from 10 March 2009 low of RM3.08 to 2 Apr 2009 of around RM4.00. It was a 30% rebounce. I was not confident that Genting could keep the upward momentum, so I sold all genting-cn shares to take the profit out of the table.
I was wrong, Genting moved up massively after that, so did genting-cn. I am still happy I managed to get a 10% gain on the genting-cn trade. It was one of my first experiences with call warrants. It was a great one.
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