Re: AW: [CANSLIM] FIC

From: RWElmer@aol.com
Subject: Re: AW: [CANSLIM] FIC
Date: Fri, 4 Jan 2002 02:11:46 EST

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Andreas,

Thanks for your observations regarding stops on FIC. Our Club actually does 
use mental stops of 10% but does not sell based on interday activity. If a 
stock closes more than 10% down, we sell the next day. The problem was the 
price action took the stock way beneath that stop today. We'll be selling in 
the morning. I'm sure that this will spark the thought of using physical 
stops as opposed to mental ones. I have tested it many times both ways and 
find decisions based on closing prices suits our Club's style better. I've 
also noticed that interday volitility has taken me out on physical stops, 
during my backtests, more often then using the 10% closing rule has. I would 
say that both methods are perfectly vaild as long as they are adhered to. I 
fully agree that it takes the emotions out of the decision. The emotions in 
the losses are still there, however.

In any event, thanks for the thoughts as I'll consider other points of view 
anytime! 

Robert W. Elmer
Coldwell Banker First Shasta
2837 Bechelli Ln.
Redding, CA 96002
RWElmer@aol.com
221-9556 or 1-800-348-7939 ext.156
www.robertelmer.com

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<HTML><FONT FACE=arial,helvetica><FONT  SIZE=2>Andreas,
<BR>
<BR>Thanks for your observations regarding stops on FIC. Our Club actually does use mental stops of 10% but does not sell based on interday activity. If a stock closes more than 10% down, we sell the next day. The problem was the price action took the stock way beneath that stop today. We'll be selling in the morning. I'm sure that this will spark the thought of using physical stops as opposed to mental ones. I have tested it many times both ways and find decisions based on closing prices suits our Club's style better. I've also noticed that interday volitility has taken me out on physical stops, during my backtests, more often then using the 10% closing rule has. I would say that both methods are perfectly vaild as long as they are adhered to. I fully agree that it takes the emotions out of the decision. The emotions in the losses are still there, however.
<BR>
<BR>In any event, thanks for the thoughts as I'll consider other points of view anytime! 
<BR>
<BR><B>Robert W. Elmer
<BR>Coldwell Banker First Shasta
<BR>2837 Bechelli Ln.
<BR>Redding, CA 96002</B>
<BR></FONT><FONT  COLOR="#0080ff" SIZE=2 FAMILY="SANSSERIF" FACE="Arial" LANG="0"><B>RWElmer@aol.com</FONT><FONT  COLOR="#000000" SIZE=2 FAMILY="SANSSERIF" FACE="Arial" LANG="0"></B>
<BR></FONT><FONT  COLOR="#0000ff" SIZE=2 FAMILY="SANSSERIF" FACE="Arial" LANG="0"><B>221-9556 or 1-800-348-7939 ext.156</FONT><FONT  COLOR="#000000" SIZE=2 FAMILY="SANSSERIF" FACE="Arial" LANG="0"></B>
<BR></FONT><FONT  COLOR="#800080" SIZE=2 FAMILY="SANSSERIF" FACE="Arial" LANG="0"><B>www.robertelmer.com</B></FONT></HTML>

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