Housewife outflanks big-gun warrants traders
Housewife outflanks big-gun warrants traders
By Gabriel Chen
CONTEST WIN: Madam Chua turned $100,000 into $1m.
A WOODLANDS housewife with scant knowledge of the share market has outsmarted MBA holders and other city slickers to win a lucrative warrants trading competition.
Madam Chua Chwee Keok grew her initial capital of $100,000 - not real cash by the way - into more than $1 million over eight weeks of the competition.
Madam Chua, 64, easily trumped her 2,000 fellow competitors, including dealers from big-gun banks like Merrill Lynch and DBS Vickers and her son Jerome Hong.
Her nearest rival turned $100,000 into $506,608.
Said Madam Chua in Hokkien: 'I found the contest challenging and educational.'
She plans to use the $8,000 prize to visit her family in China.
Madam Chua's surprise win is remarkable given that she was clueless about warrants trading before the contest and had to rely on her son for help at first.
Mr Hong, 35, an accountant, showed her how to use the computer to trade and taught her how to interpret the numbers flickering across the screen.
'I told her to concentrate on trading Hang Seng Index warrants because of their big fluctuations,' said Mr Hong.
'She spent a lot of time on the computer, but I'm surprised she won. It was a bit of luck.'
Warrants allow investors to buy a certain share at a set price on a certain date. They are much cheaper than the 'mother share', but can catch people out if the market gets the shakes.
Madam Chua made about three trades a day, nimbly buying and selling mostly warrants that track the movement of Hong Kong's roller-coaster Hang Seng Index.
She traded with the direction of the market. If warrant prices went higher, she sold; if they fell, she bought.
Said Mr Barnaby Matthews, the head of warrants sales at Macquarie Bank which organised the contest: 'Madam Chua played a highly geared strategy, trading almost exclusively in warrants over the Hang Seng index, one of the more volatile Asian indexes.
'She was able to ride on the back of a 4.5 per cent increase in the value of the Hang Seng over the eight weeks of the competition.'
The Australian bank organised the event to promote further interest in the already booming warrants market. There were four categories - remisiers and dealers; private investors; media; and students.
Mr Lim Yew Lee from DBS Vickers was top remisier. Nanyang Technological University student Jacky Teo led the students, while Mr Yap Huan Poh of Rainbow Media won the media race.
By Gabriel Chen
CONTEST WIN: Madam Chua turned $100,000 into $1m.
A WOODLANDS housewife with scant knowledge of the share market has outsmarted MBA holders and other city slickers to win a lucrative warrants trading competition.
Madam Chua Chwee Keok grew her initial capital of $100,000 - not real cash by the way - into more than $1 million over eight weeks of the competition.
Madam Chua, 64, easily trumped her 2,000 fellow competitors, including dealers from big-gun banks like Merrill Lynch and DBS Vickers and her son Jerome Hong.
Her nearest rival turned $100,000 into $506,608.
Said Madam Chua in Hokkien: 'I found the contest challenging and educational.'
She plans to use the $8,000 prize to visit her family in China.
Madam Chua's surprise win is remarkable given that she was clueless about warrants trading before the contest and had to rely on her son for help at first.
Mr Hong, 35, an accountant, showed her how to use the computer to trade and taught her how to interpret the numbers flickering across the screen.
'I told her to concentrate on trading Hang Seng Index warrants because of their big fluctuations,' said Mr Hong.
'She spent a lot of time on the computer, but I'm surprised she won. It was a bit of luck.'
Warrants allow investors to buy a certain share at a set price on a certain date. They are much cheaper than the 'mother share', but can catch people out if the market gets the shakes.
Madam Chua made about three trades a day, nimbly buying and selling mostly warrants that track the movement of Hong Kong's roller-coaster Hang Seng Index.
She traded with the direction of the market. If warrant prices went higher, she sold; if they fell, she bought.
Said Mr Barnaby Matthews, the head of warrants sales at Macquarie Bank which organised the contest: 'Madam Chua played a highly geared strategy, trading almost exclusively in warrants over the Hang Seng index, one of the more volatile Asian indexes.
'She was able to ride on the back of a 4.5 per cent increase in the value of the Hang Seng over the eight weeks of the competition.'
The Australian bank organised the event to promote further interest in the already booming warrants market. There were four categories - remisiers and dealers; private investors; media; and students.
Mr Lim Yew Lee from DBS Vickers was top remisier. Nanyang Technological University student Jacky Teo led the students, while Mr Yap Huan Poh of Rainbow Media won the media race.
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