RE: [CANSLIM] Know your exit before you enter

From: "Krueger, Kevin" <Kevin.Krueger@cardinal.com>
Subject: RE: [CANSLIM] Know your exit before you enter
Date: Wed, 27 Aug 2003 09:24:45 -0500

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Great question Tomas and I thought this question would spark more =
interest in discussion.=20

I don't have a great deal of experience on this point, but I have been =
researching this topic as I get more disciplined and build a checklist =
for trading. I don't have my notes in front of me, but I recall reading =
(for long positions):

1. Potential exit points could be resistance points of the past. =
Certainly, as you said, one would be a stop loss below your entry point.
2. Identify your target profit. This could be more of a judgment call =
based on recent price/volume action and your experience in the market.
3. Calculate your risk/reward ratio. In order to calc. the ratio, you =
need a target price.

I think answering these questions before you execute will add to your =
body of knowledge about that potential trade.

- -Kevin

- -----Original Message-----
From: Tomas [mailto:tomas986@yahoo.com]
Sent: Tuesday, August 26, 2003 2:16 PM
To: canslim canslim
Subject: [CANSLIM] Know your exit before you enter


Hi All,

I hear people say this a lot.  They always give advice
saying that you should know when you will exit a stock
when you buy the stock.  For me, I do not have that
mindset.  When I enter into a position, there is the
usually sell rule that I follow (ie... 7% loss, etc).=20
However, I do not make up my mind at the entry point
to sell at the 20% profit markt.  For me, it all
depends on the price action (and the obvious market
condition).  If the stock is behaving well, I do not
sell it.  If it is not behaving well, I think about
selling it.  I do not have a specific exit point
beforehand.  So, am I missing something here? =20

Reqgards,
tomas

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