Tuesday, April 10, 2007

LESS RISKY TRADE AND LONGER TERM

I have to mention a stock that is a buy-and-hold if you are into that thing. In fact, there are two of them: BRK.A and BRK.B
These are the famous stocks of Berkshire Hathaway (Warren Buffet's baby). One drawback, BRK.A are trading at $109,800.00 and BRK.B are trading at $3,665.00 per share. That's right!! Over $100,000 for one share. Good luck buying that one. If you have the cash, go for the BRK.B
The reason why I am mentioning it is that I read the prospectus from B-H today and they had a banner 2006. I noticed that he ventured into Forex trading also and lost out on only 2 currencies out of the 12 he traded. Not too bad. He did note that he is still bearish on the US dollar, which means he still expects the value to decrease since the Federal Reserve may keep interest rates the same. If the Feds increase the interest rate again to stem inflation, the US dollar will get stronger. I'm glad I am on the side of Buffet with my current trade of being long the EUR/USD. As of now it is trading at $1.3420 which is giving me a profit of $3600 on an initial investment of $2000. Yes, that's right. It is a 175% increase in one month. My stop loss is sitting at $1.335 where my trend line is sitting. I get to move it up about 10-15 pips a day.

On my beginning trend search ADSK popped up so watch for a trend-change to the upside on this one as long as the overall stock market holds up, too. Keep a big eye on BSM as it appears to be creating a "bull flag". If it breaks out to the upside of high trading volume, make it a buy above $9.15.

Good luck trading.
JD

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