BHP Stop Price Raised to $45

By Jim Pearce • January 25, 2018

With only one month left in our target holding period for BHP Billiton, I’m raising the stop price to $45 to ensure that we all make money on this trade. I have no reason to believe that the stock may take a dive anytime soon, but I also see no point in leaving open the possibility of losing money in this position if something unexpected occurs.

NOTE: Unlike my stop-loss orders (stock sold at a loss) that are only effective at the closing price, a stop order (stock sold at a gain) is effective throughout the trading day and can be exercised at any time the stock trades down to that price.

Stock Talk

Comments Oldest First

Comments Guidelines

Janis Bell

02/05/18 ‐ 1:36pm ET February 5, 2018 at 1:36pm ET

So now that the market is heading down and the energy sector especially, do we just wat for BHP to go down another 2.68 or should we take our profits now?

Jim Pearce

02/05/18 ‐ 1:50pm ET February 5, 2018 at 1:50pm ET

That’s entirely up to you. I raised the stop price for BHP to $45 to lock in a decent gain, but I also wanted to leave room for it to rally once enough investors realize that the thing driving the stock market down at the moment (fear over accelerating inflation) would actually make BHP more profitable since the oil and metals its produces should rise in value if that happens. Of course, investors tend not to be logical when they start dumping stocks en masse so that may not happen in time to help this trade, but sooner or later people will begin to figure that out and start buying up the price of BHP.

Janis Bell

02/05/18 ‐ 2:06pm ET February 5, 2018 at 2:06pm ET

I agree, and I think PF has a long position in it in one of their portfolios. So that logic would justify removing the stop and riding out the drop, which is what I may do.

MarkS

02/07/18 ‐ 5:01pm ET February 7, 2018 at 5:01pm ET

I had set my stop loss up at $47 and got sold out on Monday at $46.99. Maybe it was a little too tight, but I have no complaints about a 16% gain in just over 4 months! thanks, Jim

Jim Pearce

02/08/18 ‐ 1:52pm ET February 8, 2018 at 1:52pm ET

Mark – as the old saying goes, you’ll never go broke taking a profit. Well done!

Add New Comments

You must be logged in to post to Stock Talk OR create an account