tradersams blog

The big Australian has a small dip.

bhp - a small dip

In the last post I saw a decision point on the short term horizon – a view that proved correct.

Looking at the graph today, 2 positions need to be commented on.

The long trade (the paper trade) is still open, however the profit is being eroded as it dips towards the stop loss line.

The short trade (which is actually in play, not just on paper) is currently profitable.  It is fairly highly leveraged due to the use of the warrant which is very close to the money, but that just means I go for a very small position to fit with my portfolio allocation model.  I think this only has a little way to go, and will maintain a tight stop and set a profit target.

Cheerio,