High Heeled Traders

Sales Galore!

March 4, 2012

Sales Girl

I wanted it. Well, actually, I wanted more it — for sooooo looooong.  It was on Sale,,, and I was really keen to get it, BUT BUT BUT  trying to time it so I’d pay the “lowest price possible” and actually get hold of it before someone else snatches it!

Last December, STO’s price was around $12 but I was very busy and I have to go on holiday, so passed up on it.  When the world went back to business in January and it shot up to 13.00. A little while too, the world paid more attention at Iran’s nuclear dreams and promptly attempted to burst it. You know what happened, we’re again paying so much more at the gas station. Oil price has been flirting at $110 levels — and yes, it could go further. STO had also reached 14.55 very quickly. Now that really made me pay attention, shake off the other distractions and see how I can increase my trading activity.  I’ve set my eyes at 14.00 as entry point when the price moves back (retracement).

Last Friday, President Obama had spoken about the issue and that cooled down the  oil price to $106 level and took STO price down in synch to 13.68.  I was salivating at the prospect of loading up on this stock at a cheaper price.

So how low can it go?  And before it shoots up again…(Waaaaaa!) Hmmm,  what to do so I won’t miss the opportunity?

I’m going to have to really watch it when it shows confirmation of the up move.  I know, I could pay cheap now — not waiting for the move up — because it can be quite sudden, but then again, it may still move lower (The support level  of STO is 13.40).

So the next questions:

  • Can I afford the risk of  the price still moving down?
  • Can I actually afford to pay a little more?
  • What risk is more tolerable?

At the sales, if there is an item I am really really really happy with, really hard to find, I’d go for it even if it’s not the cheapest price.  After all, Warren Buffett says, it is better to pay a “fair price for a wonderful company, than pay a wonderful price for a fair company.”

I’m loading up on these babies!

STO 1 month chart

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