Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] Intro...
Date: Thu, 28 Mar 2002 22:59:17 -0500
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This is a multi-part message in MIME format. - ------=_NextPart_000_01C7_01C1D6AC.30423990 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Welcome to the group, jhs, The 8% sell stop rule (from your entry point) is, like most of CANSLIM, = guidance rather than an absolute rule. For newcomers to CANSLIM, it's = best to use the rules as a default until you gain sufficient experience = to start modifying the rules to suit your own personality, risk = tolerance, experience, chart reading skills, time available to watch the = market, etc. I rarely use hard stops since I mostly buy NASDAQ stocks, and mostly low = priced thinly traded ones. Schwab rarely accepts stop loss orders on my = flavor of stocks. A recent exception was RMCI, where I was stopped out = for about a 10% profit at 21.90. Did buy more for my VR fund on the dip, = should have bot with real money as well as now at 25.32. Would have done = better just holding in violation of all the rules. A hard 8% works best if your entry was correct. If you chased the stock = and bot it extended, then 8% may only put you back at the pivot, not the = best exit point. When I use stop loss, I want to be able to set it no = more than 8% off my buy point, but have it also be at the bottom of the = base. That way, I can ride it back into the base if the b/o fails = without being stopped out, and only stop out if the base fails and it = falls thru it. If 8% won't put me at the bottom of a decent base, then I = tend to use a larger percentage. Tom Worley stkguru@bellsouth.net AIM: TexWorley - ----- Original Message -----=20 From: jhs=20 To: canslim@xmission.com=20 Sent: Wednesday, March 27, 2002 9:10 PM Subject: [CANSLIM] Intro... I'm another newbie, but have been lurking for sometime observing and = learning. I am not a Forbes referral, but one from a current/long-term = member. This has been a terrific site; it is a rare board that = maintains a sense of dignity as well as being informative. Thanks! I have been investing for several years, but with the assistance of a = broker. I finally decided to pull the plug because I felt I had too = little control. It irritated me no end that we never seemed to come to = some kind of sell rules agreement; hence I rode down more stocks than I = care to admit. I like the discipline of CANSLIM; for now I intend to = follow it pretty much to the letter until I get some more experience and = feel comfortable experimenting a bit. One question: CANLIM dictates a sell when the price drops 8% below = purchase cost (with some variation on the exact percentage). Do most = members write a stop loss order at the same time as the purchase order? = Or do you simply make a mental note and watch the market? I ask this = because I have been told that traders have access to the sell orders and = at times may actually manipulate the prices to the point that they can = dip down and pick off what is then a comparatively cheap stock. - ------=_NextPart_000_01C7_01C1D6AC.30423990 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2713.1100" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV><FONT face=3DArial>Welcome to the group, jhs,</FONT></DIV> <DIV><FONT face=3DArial></FONT> </DIV> <DIV><FONT face=3DArial>The 8% sell stop rule (from your entry point) = is, like=20 most of CANSLIM, guidance rather than an absolute rule. For newcomers to = CANSLIM, it's best to use the rules as a default until you gain = sufficient=20 experience to start modifying the rules to suit your own personality, = risk=20 tolerance, experience, chart reading skills, time available to watch the = market,=20 etc.</FONT></DIV> <DIV><FONT face=3DArial></FONT> </DIV> <DIV><FONT face=3DArial>I rarely use hard stops since I mostly buy = NASDAQ stocks,=20 and mostly low priced thinly traded ones. Schwab rarely accepts stop = loss orders=20 on my flavor of stocks. A recent exception was RMCI, where I was stopped = out for=20 about a 10% profit at 21.90. Did buy more for my VR fund on the dip, = should have=20 bot with real money as well as now at 25.32. Would have done better just = holding=20 in violation of all the rules.</FONT></DIV> <DIV><FONT face=3DArial></FONT> </DIV> <DIV><FONT face=3DArial>A hard 8% works best if your entry was correct. = If you=20 chased the stock and bot it extended, then 8% may only put you back at = the=20 pivot, not the best exit point. When I use stop loss, I want to be = able to=20 set it no more than 8% off my buy point, but have it also be at the = bottom of=20 the base. That way, I can ride it back into the base if the b/o fails = without=20 being stopped out, and only stop out if the base fails and it falls thru = it. If=20 8% won't put me at the bottom of a decent base, then I tend to use a = larger=20 percentage.</FONT></DIV> <DIV><FONT face=3DArial></FONT> </DIV> <DIV>Tom Worley<BR><A=20 href=3D"mailto:stkguru@bellsouth.net">stkguru@bellsouth.net</A><BR>AIM:=20 TexWorley</DIV> <DIV style=3D"FONT: 10pt arial">----- Original Message -----=20 <DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A=20 title=3Djhs@chorus.net href=3D"mailto:jhs@chorus.net">jhs</A> </DIV> <DIV><B>To:</B> <A title=3Dcanslim@xmission.com=20 href=3D"mailto:canslim@xmission.com">canslim@xmission.com</A> </DIV> <DIV><B>Sent:</B> Wednesday, March 27, 2002 9:10 PM</DIV> <DIV><B>Subject:</B> [CANSLIM] Intro...</DIV></DIV> <DIV><BR></DIV> <DIV><SPAN class=3D00010002-28032002><FONT face=3DArial size=3D2>I'm = another newbie,=20 but have been lurking for sometime observing and learning. I am = not a=20 Forbes referral, but one from a current/long-term member. This has = been a=20 terrific site; it is a rare board that maintains a sense of dignity as = well as=20 being informative. Thanks!</FONT></SPAN></DIV> <DIV><SPAN class=3D00010002-28032002><FONT face=3DArial=20 size=3D2></FONT></SPAN> </DIV> <DIV><SPAN class=3D00010002-28032002><FONT face=3DArial size=3D2>I have = been investing=20 for several years, but with the assistance of a broker. I finally = decided=20 to pull the plug because I felt I had too = little control. It=20 irritated me no end that we never seemed to come to some kind of sell = rules=20 agreement; hence I rode down more stocks than I care to admit. I = like the=20 discipline of CANSLIM; for now I intend to follow it pretty much to the = letter=20 until I get some more experience and feel comfortable experimenting a=20 bit.</FONT></SPAN></DIV> <DIV><SPAN class=3D00010002-28032002><FONT face=3DArial=20 size=3D2></FONT></SPAN> </DIV> <DIV><SPAN class=3D00010002-28032002><FONT face=3DArial size=3D2>One = question: =20 CANLIM dictates a sell when the price drops 8% below purchase cost (with = some=20 variation on the exact percentage). Do most members write a stop = loss=20 order at the same time as the purchase order? Or do you simply = make a=20 mental note and watch the market? I ask this because I have been = told that=20 traders have access to the sell orders and at times may actually = manipulate the=20 prices to the point that they can dip down and pick off what is then a=20 comparatively cheap stock.</FONT></SPAN></DIV></BODY></HTML> - ------=_NextPart_000_01C7_01C1D6AC.30423990-- - - - -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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