It’s late at night and so sleepy, I thought I’d take a break from doing my taxes and looking for something to crack me up. Checking on Bloomberg seems to be a habit of mine and I, of course jumped in to the videos with Warren Buffett (quick! Google him if you don’t know who he is!). Lately I’ve been thinking if I should jump in on bank stocks. I’ve been watching them for years and actually, I did try trading them early on but my self-awareness wasn’t “aware” yet HAHAHA so I can’t share any worthwhile lesson about it. But, here we got Warren Buffett, Carlos Slim who are in the banking business so it must be a good business to get into — despite the debt issues still lurking in the shadows. I guess like any business, managing the risk of debt is always important. Anyway, will come back to my investigation of bank stocks. I do believe there is a good chance of uptrend / strength in this sector considering the bleeding period they had gone through, and would be well-positioned for recovery in local and even global economy. (Whenever that is!)
Now just to update you about my trade, I was able to enter BHP at 36.20 and the stock is now up at 37.50. This is past the 1month Resistance of 37.44, so while I am so tempted to take profit at the highs intraday (it went as much as 37.80 or about 30c profit). I feel there is significant upside to the position, and once the Resistance is pierced supported by investors, I can let my profit run. Still just observing Initial Risk (Stop) at 30c, when I can implement some risk management strategies like the covered call option.
