One common mistake new traders make when deciding to buy a cash-settled call business warrants is over the concept of ‘break-even’. Just what is break-even?

For many novice warrant traders, break-even means the sum of what they paid for the business warrants plus the conversion/ strike price.

To these traders, they feel that in order for their trade to make a profit, there must be a good chance that the price of the underlying or mother share exceeds this break-even point.

In every one of my stock market trading seminars, I ask each attendee his profession. I do this not only to break the ice but to give them confidence.

I think all of us bring something to the table that can help us to be successful in the stock market.

For example, engineers are much disciplined and are good at following rule-based systems. When they follow a rule-based back-tested system, this can help control emotional behavior. Emotions play a large part in financial markets.

Medical doctors are scientific and base their decisions on logic and evidence. Successful investors weigh the facts and a doctor’s thought process will give him an edge over those who make decisions based on emotions.