It didn’t help that we just got over Easter and my kids were just keen to “collect” eggs but have not been eating them. I had to step up and finish them – out of sight! It was telltale sign of my anguish for weeks, knowing that I have to implement my plans. I’ve been transitioning to more active investing, spending more time with the business. I had been trading happily with 2-5 transactions a month with my pet stock STO but its price action is slower than my new active timeframe. I guess this is an emotional response, I had steady income with this stock and I have years of accumulated knowledge on the fundamentals factors that move the oil market — it helped change my life for the better.
But, the volatility is rather low, it drags on with 30c change in month, for some reason it has become a very slow moving stock. Perhaps because the oil sector is just bouncing around in a range at the moment. The thing I like about STO, that it does not “follow” the overall market much, meaning that if the market has a spectacular fall, its price does not slide that much– but that’s losing its charm now that I have time to watch the market :). So I have to make a decision, and shave off my holdings for STO as it is not anymore helping me in my life goals and my growth. Kind of like leaving past loves 🙂 … Breaking up is really hard to do. But look, you have to do the best for yourself as life ushers in a new sweet season.
Sweet Season for Azaleas by Yumiko
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So, I told you about studying BHP, and I was preparing to enter a trade when I noted that I could have a look at another oil stock – WPL or Woodside Petroleum. Actually I have jumped on a trade for it early this week “shorting” or selling this stock (now you know why I haven’t had much updates on this blog lately!) I worked furiously on getting the business plan and system right for this stock, tested and documented it. There was a special dividend announced last week and it goes ex-Dividend on 30th of April.
These are my beliefs on WPL:
WPL is an oil stock, I have had extensive study and experience trading on oil fundamentals like supply and demand, geopolitics, macro-economics, weather etc.
It is a trending stock with daily average volatility range that fits within my Initial Risk (of 30c) per trade. (My calculation is the price at Open less the Low, for average of 75 days)
I can use trading strategies for shorter-term and daytrading using concepts that I already know how to use for the market conditions like Band Trading, Trend Following and Intermarket Analysis.
The best thing is I can also leverage what I have already done with BHP like the position sizing model (how much I am risking and how big will be my holdings) because they are at about the same price range.
OK now I am happy to report that from WPL’s 1 month high around 38.78, I got into a short position and it is now at 36.42. Sell in May it is…
WPL and BHP charts
