ok, I was grumpy the other day. . .but even I (who am the last buy and hold) am not above trading a bit on BPT. . .this DOES go up and down like a YoYo. . .although Goldman Sachs seems to think $60 oil is here to stay. . .makes a good case. . .item in Financial Times. . .ft.com
I like BPT as a Buy-and-Hold, but I find myself trading it by default: When my Stop Loss triggered the other day at 76, dumping my shares...I had no choice but to buy back in at today's lower price. My only regret is not buying back in yesterday before close.
I'd be interested in hearing others' opinions about stop loss orders on BPT. Do you use them? When are they appropriate? What method(s) do you use for determining the best threshold for selling?...5% drop?...10%?
No, I don't use stop-loss orders on BPT, and seldom on other stocks. . .just my trading habits. I am in most of my shares at prices from 2-4 years ago (although I sold some to cover my original investment), so I am less concerned at this time about losing $5 a share. In the long run, I feel that oil will remain very high, and that the dividends for long term holders will help "smooth-out" weekly fluctuations. As I mentioned, Goldman Sachs and the Financial Times put it in a way that is easy to understand . . .the easy and cheap oil (light sweet) was found and developed decades ago. . .the harder to find oil (North Sea and Prudhole Bay) were also from decades ago and are in decline. . .so the next finds are harder to find, dirty (tar sands) and in places where shipping costs may be higher. . .therefore, high oil prices MUST be maintained to justify exploration and development. . .(the development costs for Canadian Tar Sands has been doubled recently). . so, I think $70 for BPT is probably the floor area at this point.