Wednesday, March 7, 2007

Bunge Update

Bunge took a hit along with the rest of the stock world last week, but remains solid... While we haven't placed a trailing stop on Bunge at this time, you can see from this chart that it's still trading well within 25% of its HSR (High Since Recommended).

This chart comes from our friends at, and shows you three tiered trailing stops at various percentages, with risk ranging from low to high as you get toward the higher 21% line.

I think these guys are onto something good with their trailing stop software. It helps you track exactly where you position is relative to your stops, and sends you automatic updates when a position has hit a trailing stop.

But it's a bit more sophisticated than a straight trailing stop system, because it allows you to account for risk levels along the way. You can choose to bail depending on market conditions or even major news events - according to your various tiers of risk.

The drawback here is that the average investor will do a lot of tinkering and hemming and hawwing... But if you simply say to yourself you will sell when the bottom TS is hit, you will indeed be following a system... just one with a bit more flexibility than a hard TS at 25%, for example.

I'll keep you posted on this ingenious little system as we go forward. Meanwhile, thanks to Al Murauski and his team at for the great charts.

Good trading,


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