Make Money Off Of BP Stock

Previously, I wrote about how it’s very hard to trade stocks by buying low and selling high. Instead, I suggested buying a particular stock high and selling it even higher, like baseball phenom Stephen Strasburg’s Rookie Card. The reason for this is it’s very hard to find the bottom of a stock and you don’t want to play the guessing game when the stock price is falling, trying to pick the bottom. It just becomes too risky. But when the stock price is on the rise, it’s easier to ride the momentum and make a few dollars off of it.

One particular stock I’ve been keeping my own is BP. Since the oil spill, BP’s stock price has plummeted from $62 in March to only $26 in July. Today, the price recovered a bit to $37/share. If you were fortunate enough to pick the bottom at $26 couple weeks ago, then you got lucky. But it would’ve been impossible to know that $26 was the bottom. As the price was declining from $62, some people probably bought at $50 or even $40 thinking that would be the bottom. It’s like trying to catch a falling knife. I suggest you avoid it.

But now that the price has picked up momentum and has been increasing in price for the past two weeks, the current price still looks very appetizing. $37 is not $26, but it’s still much lower than $62 it once was a few months ago. So, consider buying this stock at the higher price of $37 today and sell it for even higher price for a good profit. Remember to set your limits to minimize risk.