• 4 minutes What will the future hold for nations dependent on high oil prices.
  • 7 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 12 minutes OPEC Cuts Deep to Save Cartel
  • 15 minutes Venezuela continues to sink in misery
  • 50 mins End of EV Subsidies?
  • 1 hour Maersk's COO statment.
  • 4 hours Citi cuts Apple's price target
  • 4 hours Asian stocks down
  • 4 hours Japan Effectively Bans China’s Huawei, ZTE From Government Contracts, Joining U.S
  • 2 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 9 hours China Builds LNG Icebreaker
  • 2 hours GOODBYE FOREIGN OIL DEPENDENCE!!
  • 12 mins Oil prices may go up, but will be below $70 a barrel in FY19: Hindustan Petroleum Chairman
  • 11 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 9 hours Price Decline in Chinese Solar Panels
  • 1 hour Regular Gas dropped to $2.21 per gallon today

Why This Offshore Player Deserves A Second Chance

Offshore

There are many big differences between trading and investing from “inside” the market and doing so from “outside”. When you are sitting at a trading desk and following markets every minute of every day you can be fairly sure that you don’t miss much. When a move looks illogical, therefore, it probably is and you react with the appropriate confidence. On the outside, however, when something is moving in a way that defies explanation one’s first reaction is normally “What did I miss?” That is the thing I keep asking myself when I look at Transocean stock (RIG).

(Click to enlarge)

Regular readers may recall that about a month ago I wrote a piece recommending RIG. At the time the stock was trading at just above $12 and the idea was to buy with a stop loss just below the $11.70 support. If you did so the trade looked good over the next couple of weeks as RIG climbed to just over $13, but then it turned. The stop was hit on Wednesday and under normal circumstances that would be that.

My trading style dictates, however, that when a stop loss level (or a target for that matter) is hit, I re-evaluate the original thesis. I was taught to do things that way as it reduces the temptation to commit what the old hands in the interbank forex market where I started saw as the ultimate sin…averaging a loser. Over the years I have found that to be the case. Once a position is closed the emotional urges that make…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions




Oilprice - The No. 1 Source for Oil & Energy News
-->