HSX Forum

Playing & Trading Strategy

Attn non-billionaire SPID9 purchasers: Great news! After two strong days, you are nearing a break-even point on your unwise investment!

Posted by: SenJohnBlutarsky on Feb 21, 16:21

SPID9 has risen nearly $H10 since Sunday, one of the stronger gainers.

You paid H$3.50 commission to purchase SPID9.  You will pay another (larger, ideally) commission to sell it.  You also paid commission when ditching securities to raise cash to purchase SPID9.  Let's be charitable and call the aggregate H$10.50 per share.  To break even after transaction cost . . . you're almost there!  (Well, disregarding the opportunity costs associated with investments offering a substantially better daily return.)

For any portfolio worth materially less than H$4.5 billion (roughly the current cost of owning the entire HSX investment universe), SPID9 was a predictably bad investment -- but one that can provide valuable lessons concerning commission costs, daily return on investment, and opportunity costs.

Good luck at the exchange!  





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