Re: [CANSLIM]c/h on chbs & bzh


From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM]c/h on chbs & bzh
Date: Sat, 15 Dec 2001 06:15:03 -0500

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Hi John,

A couple of comments:

CHBS - not as smooth a formation as I would prefer, but I agree, there =
is a c&h there, with the handle now about a week long. However, I also =
note that Management only owns 8% of the issue, leaving the rest in the =
float. Of that, funds already own 39%, that's too high for safety in my =
opinion. While ROE is very strong at 48%, it is not being translated =
thru into cash flow ($1.24 vs $1.00). And earnings in the first half are =
only a third of the projection for the full year. Appears that Q3 and Q4 =
are the stronger ones, but with retail reports indicating that Xmas =
sales are not brisk, I suspect they will have difficulty making full =
year forecasts.

On BZH - one of the very few home builders that has continued to show =
exceptional growth both y2y and sequentially. I have the same problem =
with Mngmt/Funds ownership (8%, 37%). As for the c&h formation, I =
disagree. I see that actually happening from 8/30 to 11/23, including =
the short handle, when it began a stealth breakout on low volume. =
Because the b/o was on low volume and well under the left lip makes this =
a formation more prone to failure, IMO, even tho it has done well so =
far.  What you see as the current handle I see as a consolidation since =
the b/o, thus should be monitored but not bought to see where it will go =
from here. Friday's drop on volume may be the "warning shot across the =
bow", or may mean nothing and earnings will continue to drive it higher. =
But with such large funds ownership, I would be very careful. I should =
also note that the forecast for 2002 calls for only a 5% earnings =
growth. They had a great 2001, but that means the quarterly comparisons =
in 2002 will be that much more difficult.

Tom Worley
stkguru@netside.net
AIM: TexWorley

  ----- Original Message -----=20
  From: John Adair=20
  To: canslim@lists.xmission.com=20
  Sent: Thursday, December 13, 2001 9:31 PM
  Subject: RE: [CANSLIM]c/h on chbs & bxh


  You might check chbs its forming a handle and has a good base. Bzh has =
a
  good base and the cup is formed . No handle  yet but it is at the =
pivot
  point ready to start the handle.

  -----Original Message-----
  From: owner-canslim@lists.xmission.com
  [mailto:owner-canslim@lists.xmission.com]On Behalf Of John Adair
  Sent: Thursday, December 13, 2001 7:49 PM
  To: canslim@lists.xmission.com
  Subject: RE: [CANSLIM] new edition of htmmis

  Can anyone tell me when the new edition of htmmis by won will be =
available

  -----Original Message-----
  From: owner-canslim@lists.xmission.com
  [mailto:owner-canslim@lists.xmission.com]On Behalf Of
  camelot.homes@charter.net
  Sent: Wednesday, December 12, 2001 9:52 PM
  To: canslim@lists.xmission.com
  Subject: Re: [CANSLIM] clarification

  eric, but how about the hugh returns that kacher, morales, ryan, kuhn =
have
  gotten in the past using the canslim system. i believe in readings WON =
gets
  a more modest 40% a year-of course i might be wrong about that. david
  ----- Original Message -----
  From: "Tangen, Eric" <tangene@tycoelectronics.com>
  To: <canslim@lists.xmission.com>
  Sent: Wednesday, December 12, 2001 9:41 PM
  Subject: RE: [CANSLIM] clarification


  > The 40% number is an amalgam of a number of anecdotes from a few =
different
  > sources. Its all word of mouth. No names to given protect the =
guilty.
  >
  > You can almost infer such a number from WON himself...I'd bet if you =
asked
  > the big-O-man in a seminar he'd deflect the question to point out =
how much
  > you are ahead having 1 big gain out of 2-5 trades.
  >
  >
  > ERIC TANGEN
  >
  > -----Original Message-----
  > From: camelot.homes@charter.net [mailto:camelot.homes@charter.net]
  > Sent: Wednesday, December 12, 2001 9:16 PM
  > To: canslim@lists.xmission.com
  > Subject: Re: [CANSLIM] clarification
  >
  >
  > eric, how do you get the 40% reliability of the WON breakout? david =
frank
  > ----- Original Message -----
  > From: "Tangen, Eric" <tangene@tycoelectronics.com>
  > To: <canslim@lists.xmission.com>
  > Sent: Wednesday, December 12, 2001 8:57 PM
  > Subject: RE: [CANSLIM] clarification
  >
  >
  > > Of course you are right...risk is the stop value itself...it is =
what you
  > > loose when your stop is triggered. It is what I mean but didn't =
say
  > > correctly.
  > >
  > > This is what happens when I try to communicate math verbally...the =
two
  > don't
  > > mix. :)
  > >
  > > ERIC TANGEN
  > >
  > >
  > >
  > > -----Original Message-----
  > > From: John Adair [mailto:xjadair@brightok.net]
  > > Sent: Wednesday, December 12, 2001 8:48 PM
  > > To: canslim@lists.xmission.com
  > > Subject: RE: [CANSLIM] clarification
  > >
  > >
  > > Hi Erick
  > > If I am reading your post right  correctly you would say your risk
  > > on a $50
  > > stock with a $5.00 stop would be  $50.00 -$5.00 or $45.00. If that =
is
  what
  > > you are saying  I would not agree I would say your risk is $5.00  =
if I
  > > understand what Tharp suggests. Tharp then limits your risk to  =
the 1%
  is
  > > based on that figure 1% ( 3% for the gunslinger) of your total  =
capitol.
  > > John Adair
  > >
  > > -----Original Message-----
  > > From: owner-canslim@lists.xmission.com
  > > [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tangen, Eric
  > > Sent: Wednesday, December 12, 2001 7:19 PM
  > > To: 'canslim@lists.xmission.com'
  > > Subject: RE: [CANSLIM] clarification
  > >
  > > The latter....your risk is your buy price less the stop. Rule of =
thumb:
  > that
  > > number should be 1% or less of your total trading capital. So if =
you
  want
  > in
  > > on a more volatile stock, just buy less of it...but don't set the =
stop
  at
  > > 7-8% if the stock has a 10% daily trading range - another point =
HTMMIS
  > > doesn't address.
  > >
  > > Trading any system with a 7-8% risk for each trade is a receipe =
for
  > > disaster. The pros use a 1% limit. If (as in HTMMIS suggest) you =
split
  up
  > > your capital evenly amoung 5-6 stocks and used an arbitrary 7-8% =
stop
  > loss,
  > > statistically, it would be very easy to get enough losing trades =
to
  loose
  > > all your money. The unspoken 40% reliability of the WON breakouts =
only
  > makes
  > > this bad situation worse.
  > >
  > > I'm afraid that a quick reading of HTMMIS gives the impression =
that if
  you
  > > can identify the perfect C+H setup and all the other CANSLIM =
criteria
  are
  > in
  > > place, you can get darn near 100% reliability of a breakout. I =
have a
  big
  > > problem with that.
  > >
  > > I'm not down on CANSLIM...just like people to know the reality of =
the
  > > situation. Your going for home runs here and home run hitters have =
a lot
  > of
  > > strikeouts.
  > >
  > >
  > > ERIC TANGEN
  > >
  > > -----Original Message-----
  > > From: Katherine Malm [mailto:kmalm@earthlink.net]
  > > Sent: Wednesday, December 12, 2001 2:02 PM
  > > To: canslim@lists.xmission.com
  > > Subject: Re: [CANSLIM] clarification
  > >
  > >
  > > >>If you put 7-8% of your trading capital
  > > > at risk on any one trade
  > >
  > > Now that I've been mulling over your comment, it begs another =
question.
  > Are
  > > you suggesting the *total* monies invested in a trade are "at =
risk"? Or
  > the
  > > amount which you've specified in downside stop-loss protection as =
"at
  > > risk."?
  > >
  > > Katherine
  > >
  > >
  > > ----- Original Message -----
  > > From: "Tangen, Eric" <tangene@tycoelectronics.com>
  > > To: <canslim@lists.xmission.com>
  > > Sent: Wednesday, December 12, 2001 1:46 PM
  > > Subject: RE: [CANSLIM] clarification
  > >
  > >
  > > > Welcome to the club! Breakouts are a high risk and high reward
  > strategy -
  > > if
  > > > you're batting .500, that's pretty darn good. You should expect =
40%
  > > success
  > > > at finding successful breakouts long-term.
  > > >
  > > > I just have to get this off my chest for the new =
subscribers...WON's
  > 7-8%
  > > > stop below the pivot is a technical stop. It is a rule of thumb =
based
  on
  > > > volatility in the handle region before a stock takes off.
  > > >
  > > > It is NOT A MONEY MANAGEMENT STOP!. If you put 7-8% of your =
trading
  > > capital
  > > > at risk on any one trade, you will eventually pay some really =
serious
  > Wall
  > > > Street tuition on the path to becoming successful trader.
  > > >
  > > > WON's work has virtually nothing in the area of money management =
(what
  > he
  > > > does say is just plain outdated...by 5 stocks with 100k...more
  > appropriate
  > > > to an era of high commissions and lower volatility).
  > > >
  > > > Tharp's books are the best (only?) work in this area and should =
be
  > > required
  > > > reading before you head out to the great casino that is Wall =
Street.
  > > >
  > > > ERIC TANGEN
  > >
  > >
  > >
  > > -
  > > -To subscribe/unsubscribe, email "majordomo@xmission.com"
  > > -In the email body, write "subscribe canslim" or
  > > -"unsubscribe canslim".  Do not use quotes in your email.
  > >
  > > -
  > > -To subscribe/unsubscribe, email "majordomo@xmission.com"
  > > -In the email body, write "subscribe canslim" or
  > > -"unsubscribe canslim".  Do not use quotes in your email.
  > >
  > >
  > > -
  > > -To subscribe/unsubscribe, email "majordomo@xmission.com"
  > > -In the email body, write "subscribe canslim" or
  > > -"unsubscribe canslim".  Do not use quotes in your email.
  > >
  > > -
  > > -To subscribe/unsubscribe, email "majordomo@xmission.com"
  > > -In the email body, write "subscribe canslim" or
  > > -"unsubscribe canslim".  Do not use quotes in your email.
  >
  >
  > -
  > -To subscribe/unsubscribe, email "majordomo@xmission.com"
  > -In the email body, write "subscribe canslim" or
  > -"unsubscribe canslim".  Do not use quotes in your email.
  >
  > -
  > -To subscribe/unsubscribe, email "majordomo@xmission.com"
  > -In the email body, write "subscribe canslim" or
  > -"unsubscribe canslim".  Do not use quotes in your email.


  -
  -To subscribe/unsubscribe, email "majordomo@xmission.com"
  -In the email body, write "subscribe canslim" or
  -"unsubscribe canslim".  Do not use quotes in your email.


  -
  -To subscribe/unsubscribe, email "majordomo@xmission.com"
  -In the email body, write "subscribe canslim" or
  -"unsubscribe canslim".  Do not use quotes in your email.


  -
  -To subscribe/unsubscribe, email "majordomo@xmission.com"
  -In the email body, write "subscribe canslim" or
  -"unsubscribe canslim".  Do not use quotes in your email.


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<DIV><FONT size=3D2>Hi John,</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=3D2>A couple of comments:</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=3D2><STRONG>CHBS</STRONG> - not as smooth a formation as =
I would=20
prefer, but I agree, there is a c&amp;h there, with the handle now about =
a week=20
long. However, I also note that Management only owns 8% of the issue, =
leaving=20
the rest in the float. Of that, funds already own 39%, that's too high =
for=20
safety in my opinion. While ROE is very strong at 48%, it is not being=20
translated thru into cash flow ($1.24 vs $1.00). And earnings in the =
first half=20
are only a third of the projection for the full year. Appears that Q3 =
and Q4 are=20
the stronger ones, but with retail reports indicating that Xmas sales =
are not=20
brisk, I suspect they will have difficulty making full year=20
forecasts.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=3D2>On <STRONG>BZH</STRONG> - one of the very few home =
builders=20
that has continued to show exceptional growth both y2y and sequentially. =
I have=20
the same problem with Mngmt/Funds ownership (8%, 37%). As for the =
c&amp;h=20
formation, I disagree. I see that actually happening from 8/30 to 11/23, =

including the short handle, when it began a stealth breakout on low =
volume.=20
Because the b/o was on low volume and well under the left lip makes this =
a=20
formation more prone&nbsp;to failure, IMO, even tho it has done well so=20
far.&nbsp; What you see as the current handle I see as a consolidation =
since the=20
b/o, thus should be monitored but not bought to see where it will go =
from here.=20
Friday's drop on volume may be the "warning shot across the bow", or may =
mean=20
nothing and earnings will continue to drive it higher. But with such =
large funds=20
ownership, I would be very careful. I should also note that the forecast =
for=20
2002 calls for only a 5% earnings growth. They had a great 2001, but =
that means=20
the quarterly comparisons in 2002 will be that much more =
difficult.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV>Tom Worley<BR><A=20
href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A><BR>AIM:=20
TexWorley<BR></DIV>
<BLOCKQUOTE=20
style=3D"BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: =
0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
  <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
  <DIV=20
  style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
  <A href=3D"mailto:xjadair@brightok.net" =
title=3Dxjadair@brightok.net>John=20
  Adair</A> </DIV>
  <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
  href=3D"mailto:canslim@lists.xmission.com"=20
  title=3Dcanslim@lists.xmission.com>canslim@lists.xmission.com</A> =
</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Thursday, December 13, =
2001 9:31=20
  PM</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: [CANSLIM]c/h on =
chbs &amp;=20
  bxh</DIV>
  <DIV><BR></DIV>You might check chbs its forming a handle and has a =
good base.=20
  Bzh has a<BR>good base and the cup is formed . No handle&nbsp; yet but =
it is=20
  at the pivot<BR>point ready to start the handle.<BR><BR>-----Original=20
  Message-----<BR>From: <A=20
  =
href=3D"mailto:owner-canslim@lists.xmission.com">owner-canslim@lists.xmis=
sion.com</A><BR>[<A=20
  =
href=3D"mailto:owner-canslim@lists.xmission.com">mailto:owner-canslim@lis=
ts.xmission.com</A>]On=20
  Behalf Of John Adair<BR>Sent: Thursday, December 13, 2001 7:49 =
PM<BR>To: <A=20
  =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
<BR>Subject:=20
  RE: [CANSLIM] new edition of htmmis<BR><BR>Can anyone tell me when the =
new=20
  edition of htmmis by won will be available<BR><BR>-----Original=20
  Message-----<BR>From: <A=20
  =
href=3D"mailto:owner-canslim@lists.xmission.com">owner-canslim@lists.xmis=
sion.com</A><BR>[<A=20
  =
href=3D"mailto:owner-canslim@lists.xmission.com">mailto:owner-canslim@lis=
ts.xmission.com</A>]On=20
  Behalf Of<BR><A=20
  =
href=3D"mailto:camelot.homes@charter.net">camelot.homes@charter.net</A><B=
R>Sent:=20
  Wednesday, December 12, 2001 9:52 PM<BR>To: <A=20
  =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
<BR>Subject:=20
  Re: [CANSLIM] clarification<BR><BR>eric, but how about the hugh =
returns that=20
  kacher, morales, ryan, kuhn have<BR>gotten in the past using the =
canslim=20
  system. i believe in readings WON gets<BR>a more modest 40% a year-of =
course i=20
  might be wrong about that. david<BR>----- Original Message =
- -----<BR>From:=20
  "Tangen, Eric" &lt;<A=20
  =
href=3D"mailto:tangene@tycoelectronics.com">tangene@tycoelectronics.com</=
A>&gt;<BR>To:=20
  &lt;<A=20
  =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
&gt;<BR>Sent:=20
  Wednesday, December 12, 2001 9:41 PM<BR>Subject: RE: [CANSLIM]=20
  clarification<BR><BR><BR>&gt; The 40% number is an amalgam of a number =
of=20
  anecdotes from a few different<BR>&gt; sources. Its all word of mouth. =
No=20
  names to given protect the guilty.<BR>&gt;<BR>&gt; You can almost =
infer such a=20
  number from WON himself...I'd bet if you asked<BR>&gt; the big-O-man =
in a=20
  seminar he'd deflect the question to point out how much<BR>&gt; you =
are ahead=20
  having 1 big gain out of 2-5 trades.<BR>&gt;<BR>&gt;<BR>&gt; ERIC=20
  TANGEN<BR>&gt;<BR>&gt; -----Original Message-----<BR>&gt; From: <A=20
  =
href=3D"mailto:camelot.homes@charter.net">camelot.homes@charter.net</A> =
[<A=20
  =
href=3D"mailto:camelot.homes@charter.net">mailto:camelot.homes@charter.ne=
t</A>]<BR>&gt;=20
  Sent: Wednesday, December 12, 2001 9:16 PM<BR>&gt; To: <A=20
  =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
<BR>&gt;=20
  Subject: Re: [CANSLIM] clarification<BR>&gt;<BR>&gt;<BR>&gt; eric, how =
do you=20
  get the 40% reliability of the WON breakout? david frank<BR>&gt; ----- =

  Original Message -----<BR>&gt; From: "Tangen, Eric" &lt;<A=20
  =
href=3D"mailto:tangene@tycoelectronics.com">tangene@tycoelectronics.com</=
A>&gt;<BR>&gt;=20
  To: &lt;<A=20
  =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
&gt;<BR>&gt;=20
  Sent: Wednesday, December 12, 2001 8:57 PM<BR>&gt; Subject: RE: =
[CANSLIM]=20
  clarification<BR>&gt;<BR>&gt;<BR>&gt; &gt; Of course you are =
right...risk is=20
  the stop value itself...it is what you<BR>&gt; &gt; loose when your =
stop is=20
  triggered. It is what I mean but didn't say<BR>&gt; &gt; =
correctly.<BR>&gt;=20
  &gt;<BR>&gt; &gt; This is what happens when I try to communicate math=20
  verbally...the two<BR>&gt; don't<BR>&gt; &gt; mix. :)<BR>&gt; =
&gt;<BR>&gt;=20
  &gt; ERIC TANGEN<BR>&gt; &gt;<BR>&gt; &gt;<BR>&gt; &gt;<BR>&gt; &gt;=20
  -----Original Message-----<BR>&gt; &gt; From: John Adair [<A=20
  =
href=3D"mailto:xjadair@brightok.net">mailto:xjadair@brightok.net</A>]<BR>=
&gt;=20
  &gt; Sent: Wednesday, December 12, 2001 8:48 PM<BR>&gt; &gt; To: <A=20
  =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
<BR>&gt;=20
  &gt; Subject: RE: [CANSLIM] clarification<BR>&gt; &gt;<BR>&gt; =
&gt;<BR>&gt;=20
  &gt; Hi Erick<BR>&gt; &gt; If I am reading your post right&nbsp; =
correctly you=20
  would say your risk<BR>&gt; &gt; on a $50<BR>&gt; &gt; stock with a =
$5.00 stop=20
  would be&nbsp; $50.00 -$5.00 or $45.00. If that is<BR>what<BR>&gt; =
&gt; you=20
  are saying&nbsp; I would not agree I would say your risk is =
$5.00&nbsp; if=20
  I<BR>&gt; &gt; understand what Tharp suggests. Tharp then limits your =
risk=20
  to&nbsp; the 1%<BR>is<BR>&gt; &gt; based on that figure 1% ( 3% for =
the=20
  gunslinger) of your total&nbsp; capitol.<BR>&gt; &gt; John =
Adair<BR>&gt;=20
  &gt;<BR>&gt; &gt; -----Original Message-----<BR>&gt; &gt; From: <A=20
  =
href=3D"mailto:owner-canslim@lists.xmission.com">owner-canslim@lists.xmis=
sion.com</A><BR>&gt;=20
  &gt; [<A=20
  =
href=3D"mailto:owner-canslim@lists.xmission.com">mailto:owner-canslim@lis=
ts.xmission.com</A>]On=20
  Behalf Of Tangen, Eric<BR>&gt; &gt; Sent: Wednesday, December 12, 2001 =
7:19=20
  PM<BR>&gt; &gt; To: <A=20
  =
href=3D"mailto:'canslim@lists.xmission.com'">'canslim@lists.xmission.com'=
</A><BR>&gt;=20
  &gt; Subject: RE: [CANSLIM] clarification<BR>&gt; &gt;<BR>&gt; &gt; =
The=20
  latter....your risk is your buy price less the stop. Rule of =
thumb:<BR>&gt;=20
  that<BR>&gt; &gt; number should be 1% or less of your total trading =
capital.=20
  So if you<BR>want<BR>&gt; in<BR>&gt; &gt; on a more volatile stock, =
just buy=20
  less of it...but don't set the stop<BR>at<BR>&gt; &gt; 7-8% if the =
stock has a=20
  10% daily trading range - another point HTMMIS<BR>&gt; &gt; doesn't=20
  address.<BR>&gt; &gt;<BR>&gt; &gt; Trading any system with a 7-8% risk =
for=20
  each trade is a receipe for<BR>&gt; &gt; disaster. The pros use a 1% =
limit. If=20
  (as in HTMMIS suggest) you split<BR>up<BR>&gt; &gt; your capital =
evenly amoung=20
  5-6 stocks and used an arbitrary 7-8% stop<BR>&gt; loss,<BR>&gt; &gt;=20
  statistically, it would be very easy to get enough losing trades=20
  to<BR>loose<BR>&gt; &gt; all your money. The unspoken 40% reliability =
of the=20
  WON breakouts only<BR>&gt; makes<BR>&gt; &gt; this bad situation=20
  worse.<BR>&gt; &gt;<BR>&gt; &gt; I'm afraid that a quick reading of =
HTMMIS=20
  gives the impression that if<BR>you<BR>&gt; &gt; can identify the =
perfect C+H=20
  setup and all the other CANSLIM criteria<BR>are<BR>&gt; in<BR>&gt; =
&gt; place,=20
  you can get darn near 100% reliability of a breakout. I have =
a<BR>big<BR>&gt;=20
  &gt; problem with that.<BR>&gt; &gt;<BR>&gt; &gt; I'm not down on=20
  CANSLIM...just like people to know the reality of the<BR>&gt; &gt; =
situation.=20
  Your going for home runs here and home run hitters have a lot<BR>&gt;=20
  of<BR>&gt; &gt; strikeouts.<BR>&gt; &gt;<BR>&gt; &gt;<BR>&gt; &gt; =
ERIC=20
  TANGEN<BR>&gt; &gt;<BR>&gt; &gt; -----Original Message-----<BR>&gt; =
&gt; From:=20
  Katherine Malm [<A=20
  =
href=3D"mailto:kmalm@earthlink.net">mailto:kmalm@earthlink.net</A>]<BR>&g=
t; &gt;=20
  Sent: Wednesday, December 12, 2001 2:02 PM<BR>&gt; &gt; To: <A=20
  =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
<BR>&gt;=20
  &gt; Subject: Re: [CANSLIM] clarification<BR>&gt; &gt;<BR>&gt; =
&gt;<BR>&gt;=20
  &gt; &gt;&gt;If you put 7-8% of your trading capital<BR>&gt; &gt; &gt; =
at risk=20
  on any one trade<BR>&gt; &gt;<BR>&gt; &gt; Now that I've been mulling =
over=20
  your comment, it begs another question.<BR>&gt; Are<BR>&gt; &gt; you=20
  suggesting the *total* monies invested in a trade are "at risk"? =
Or<BR>&gt;=20
  the<BR>&gt; &gt; amount which you've specified in downside stop-loss=20
  protection as "at<BR>&gt; &gt; risk."?<BR>&gt; &gt;<BR>&gt; &gt;=20
  Katherine<BR>&gt; &gt;<BR>&gt; &gt;<BR>&gt; &gt; ----- Original =
Message=20
  -----<BR>&gt; &gt; From: "Tangen, Eric" &lt;<A=20
  =
href=3D"mailto:tangene@tycoelectronics.com">tangene@tycoelectronics.com</=
A>&gt;<BR>&gt;=20
  &gt; To: &lt;<A=20
  =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
&gt;<BR>&gt;=20
  &gt; Sent: Wednesday, December 12, 2001 1:46 PM<BR>&gt; &gt; Subject: =
RE:=20
  [CANSLIM] clarification<BR>&gt; &gt;<BR>&gt; &gt;<BR>&gt; &gt; &gt; =
Welcome to=20
  the club! Breakouts are a high risk and high reward<BR>&gt; strategy =
- -<BR>&gt;=20
  &gt; if<BR>&gt; &gt; &gt; you're batting .500, that's pretty darn =
good. You=20
  should expect 40%<BR>&gt; &gt; success<BR>&gt; &gt; &gt; at finding =
successful=20
  breakouts long-term.<BR>&gt; &gt; &gt;<BR>&gt; &gt; &gt; I just have =
to get=20
  this off my chest for the new subscribers...WON's<BR>&gt; 7-8%<BR>&gt; =
&gt;=20
  &gt; stop below the pivot is a technical stop. It is a rule of thumb=20
  based<BR>on<BR>&gt; &gt; &gt; volatility in the handle region before a =
stock=20
  takes off.<BR>&gt; &gt; &gt;<BR>&gt; &gt; &gt; It is NOT A MONEY =
MANAGEMENT=20
  STOP!. If you put 7-8% of your trading<BR>&gt; &gt; capital<BR>&gt; =
&gt; &gt;=20
  at risk on any one trade, you will eventually pay some really =
serious<BR>&gt;=20
  Wall<BR>&gt; &gt; &gt; Street tuition on the path to becoming =
successful=20
  trader.<BR>&gt; &gt; &gt;<BR>&gt; &gt; &gt; WON's work has virtually =
nothing=20
  in the area of money management (what<BR>&gt; he<BR>&gt; &gt; &gt; =
does say is=20
  just plain outdated...by 5 stocks with 100k...more<BR>&gt; =
appropriate<BR>&gt;=20
  &gt; &gt; to an era of high commissions and lower volatility).<BR>&gt; =
&gt;=20
  &gt;<BR>&gt; &gt; &gt; Tharp's books are the best (only?) work in this =
area=20
  and should be<BR>&gt; &gt; required<BR>&gt; &gt; &gt; reading before =
you head=20
  out to the great casino that is Wall Street.<BR>&gt; &gt; &gt;<BR>&gt; =
&gt;=20
  &gt; ERIC TANGEN<BR>&gt; &gt;<BR>&gt; &gt;<BR>&gt; &gt;<BR>&gt; &gt; =
- -<BR>&gt;=20
  &gt; -To subscribe/unsubscribe, email "<A=20
  =
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  canslim".&nbsp; Do not use quotes in your email.<BR><BR><BR>-<BR>-To=20
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