Go to Jeff Salisbury LWGate Home Page.From: "Mike Gibbons" <mikegibbons@proactech.com>
Subject: RE: [CANSLIM] NVR
Date: Wed, 10 Apr 2002 14:17:38 -1000
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Hi Katherine,
I hope I'm not flogging a dead horse here... Perhaps my interpretation of
your comment was incorrect or my math is fuzzy :-) . You said "I go $0.13
below the closest $.50 mark ...". By closest I assumed you meant the closest
$.50 below the congestion (I'm not familiar with that term, but I presume
you mean the support level). So if the congestion was at $24.99 then you
would put the stop at $24.50 - $0.13 = $24.37. That is $0.62 below the
support level, or in this case 2.5%.
I don't mean to be nit-picking - just a techie trying to understand.
Aloha,
Mike Gibbons
Proactive Technologies, LLC
http://www.proactech.com
-----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm
Sent: Wednesday, April 10, 2002 1:12 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] NVR
Hi Mike,
I'm not sure how you got 3%.... Most trailing stops are set about 0.10
below the recent congestion. Either way, you're already sacrificing the 0.10
to set the stop and so its a sunk cost. In my example, a stop $0 .10 below
congestion would be set at 24.42. I set it at 24.37. That's $0.05 or 0.2%
more than a $0.10 stop on the same stock. If I were trading billions, I'd
worry about it. I don't use stops as a trading technique on long positions,
I use them as catastrophic insurance. Profits on long positions I take on my
own with mental stops and will be out long before a stop is hit if other
price/volume indicators trigger a sell. I think as an intermediate term
trader that is the best route, as you want to give a stock room to breathe
as it makes its advance. Also, stops get hit in intraday swings. As an
intermediate term player, the close is what's important.
Katherine
----- Original Message -----
From: Mike Gibbons
To: canslim@lists.xmission.com
Sent: Wednesday, April 10, 2002 5:52 PM
Subject: RE: [CANSLIM] NVR
Hi Katherine,
I understand staying away from round numbers, but I'm wondering why you
choose another 0.13 below. That could put your stop at up to (0.49 + 0.13 =
0.62) which seems to give a lot of room for further losses. On a $20 stock
that would be an additional 3%.
But I'm sure you have a sound reason, so I'm wondering if you'd explain.
Aloha,
Mike Gibbons
Proactive Technologies, LLC
http://www.proactech.com
-----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm
Sent: Wednesday, April 10, 2002 12:41 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] NVR
Hi Bill,
I think everybody is different when it comes to setting their stop...I
go $0.13 below the closest $.50 mark just to stay out of round numbers. So
if the bottom of congestion were $24.52, I'd set a stop at $24.50 - 0.13 =
$24.37. That odd number has saved me from getting caught in a quick sweep
plenty of times.
Katherine
----- Original Message -----
From: William King
To: canslim@lists.xmission.com
Sent: Wednesday, April 10, 2002 5:25 PM
Subject: Re: [CANSLIM] NVR
Katherine,
Thanks for the trailing stop info. Not knowing any better I have
been in the arbitrary 8% camp unless there is obvious support in that area.
When they say "below" a given area - how far below? .10, .50 ??
----- Original Message -----
From: Katherine Malm
To: canslim@lists.xmission.com
Sent: Tuesday, April 09, 2002 11:26 PM
Subject: Re: [CANSLIM] NVR
Dimitri,
There are many ways to set a trailing stop. Some use trend lines,
some use a recent area of consolidation, some use the volatility of the
stock, some use moving averages. The one thing you do *not* want to do is
choose an arbitrary number such as 8% as a trailing stop. You run the risk
of being stopped out of a stock that is experiencing a "normal" pullback in
its uptrend. I've uploaded an article on trailing stops written by Mark
Boucher to the CANSIM site. You'll find it at:
http://WallStreet-LLC.com/pub/TrailingStops.doc
Use a wise approach to setting your stop and you will be more
likely to find that delicate balance between protecting profits, riding a
good stock as long as possible and protecting against catastrophic loss.
Katherine
----- Original Message -----
From: Dimitri Katsaros
To: canslim@lists.xmission.com
Sent: Tuesday, April 09, 2002 5:29 PM
Subject: [CANSLIM] NVR
Thank you all for the advice on NVR... after hearing
all that has been said and looking at the chart, I'm
going to take Katherine Malm's advice by putting a
trailing stop. Should I do it at 8% or perhaps larger
to weather out any volatility?
Thanks
Dimitri
=====
Quiquid latine dictum sit altum viditur
__________________________________________________
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<DIV><FONT color=3D#0000ff face=3DArial size=3D2><SPAN =
class=3D820140100-11042002>Hi=20
Katherine,</SPAN></FONT></DIV>
<DIV><FONT color=3D#0000ff face=3DArial size=3D2><SPAN=20
class=3D820140100-11042002></SPAN></FONT> </DIV>
<DIV><FONT color=3D#0000ff face=3DArial size=3D2><SPAN =
class=3D820140100-11042002>I hope=20
I'm not flogging a dead horse here... Perhaps my interpretation of your =
comment=20
was incorrect or my math is fuzzy :-) . You said "I go $0.13 below the=20
closest $.50 mark ...". By closest I assumed you meant the closest =
$.50=20
below the congestion (I'm not familiar with that term, but I presume you =
mean=20
the support level). So if the congestion was at $24.99 then you would =
put the=20
stop at $24.50 - $0.13 =3D $24.37. That is $0.62 below the support =
level, or in=20
this case 2.5%.</SPAN></FONT></DIV>
<DIV><FONT color=3D#0000ff face=3DArial size=3D2><SPAN=20
class=3D820140100-11042002></SPAN></FONT> </DIV>
<DIV><FONT color=3D#0000ff face=3DArial size=3D2><SPAN =
class=3D820140100-11042002>I=20
don't mean to be nit-picking - just a techie trying to understand.=20
</SPAN></FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial size=3D2>Aloha,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Mike Gibbons<BR>Proactive Technologies, =
LLC</FONT></DIV>
<DIV><FONT face=3DArial size=3D2><A=20
href=3D"http://www.proactech.com/">http://www.proactech.com</A></FONT></D=
IV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
<DIV align=3Dleft class=3DOutlookMessageHeader dir=3Dltr><FONT =
face=3DTahoma=20
size=3D2>-----Original Message-----<BR><B>From:</B>=20
owner-canslim@lists.xmission.com=20
[mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of </B>Katherine =
Malm<BR><B>Sent:</B> Wednesday, April 10, 2002 1:12 PM<BR><B>To:</B>=20
canslim@lists.xmission.com<BR><B>Subject:</B> Re: [CANSLIM]=20
NVR<BR><BR></DIV></FONT>
<DIV>Hi Mike,</DIV>
<DIV> </DIV>
<DIV>I'm not sure how you got 3%.... Most trailing stops are set about =
0.10=20
below the recent congestion. Either way, you're already sacrificing =
the 0.10=20
to set the stop and so its a sunk cost. In my example, a stop $0 .10 =
below=20
congestion would be set at 24.42. I set it at 24.37. That's $0.05 or =
0.2% more=20
than a $0.10 stop on the same stock. If I were trading billions, I'd =
worry=20
about it. I don't use stops as a trading technique on long positions, =
I use=20
them as catastrophic insurance. Profits on long positions I take on my =
own=20
with mental stops and will be out long before a stop is hit if other=20
price/volume indicators trigger a sell. I think as an intermediate =
term trader=20
that is the best route, as you want to give a stock room to breathe as =
it=20
makes its advance. Also, stops get hit in intraday swings. As an =
intermediate=20
term player, the close is what's important.</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<BLOCKQUOTE dir=3Dltr=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:mikegibbons@proactech.com"=20
title=3Dmikegibbons@proactech.com>Mike Gibbons</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> Wednesday, April 10, =
2002 5:52=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: [CANSLIM] =
NVR</DIV>
<DIV><BR></DIV>
<DIV><FONT color=3D#0000ff face=3DArial size=3D2><SPAN =
class=3D160544622-10042002>Hi=20
Katherine,</SPAN></FONT></DIV>
<DIV><FONT color=3D#0000ff face=3DArial size=3D2><SPAN=20
class=3D160544622-10042002></SPAN></FONT> </DIV>
<DIV><FONT color=3D#0000ff face=3DArial size=3D2><SPAN =
class=3D160544622-10042002>I=20
understand staying away from round numbers, but I'm wondering why =
you choose=20
another 0.13 below. That could put your stop at up to (0.49 + 0.13 =
=3D 0.62)=20
which seems to give a lot of room for further losses. On a $20 stock =
that=20
would be an additional 3%.</SPAN></FONT></DIV>
<DIV><FONT color=3D#0000ff face=3DArial size=3D2><SPAN=20
class=3D160544622-10042002></SPAN></FONT> </DIV>
<DIV><FONT color=3D#0000ff face=3DArial size=3D2><SPAN=20
class=3D160544622-10042002>But I'm sure you have a sound reason, so =
I'm=20
wondering if you'd explain.</SPAN></FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial size=3D2>Aloha,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Mike Gibbons<BR>Proactive =
Technologies,=20
LLC</FONT></DIV>
<DIV><FONT face=3DArial size=3D2><A=20
=
href=3D"http://www.proactech.com/">http://www.proactech.com</A></FONT></D=
IV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
<DIV align=3Dleft class=3DOutlookMessageHeader dir=3Dltr><FONT =
face=3DTahoma=20
size=3D2>-----Original Message-----<BR><B>From:</B>=20
owner-canslim@lists.xmission.com=20
[mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of =
</B>Katherine=20
Malm<BR><B>Sent:</B> Wednesday, April 10, 2002 12:41 =
PM<BR><B>To:</B>=20
canslim@lists.xmission.com<BR><B>Subject:</B> Re: [CANSLIM]=20
NVR<BR><BR></DIV></FONT>
<DIV>Hi Bill,</DIV>
<DIV> </DIV>
<DIV>I think everybody is different when it comes to setting their =
stop...I go $0.13 below the closest $.50 mark just to stay =
out of=20
round numbers. So if the bottom of congestion were $24.52, I'd set =
a stop=20
at $24.50 - 0.13 =3D $24.37. That odd number has saved me from =
getting=20
caught in a quick sweep plenty of times.</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<BLOCKQUOTE dir=3Dltr=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:wk11@adelphia.net" =
title=3Dwk11@adelphia.net>William=20
King</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> Wednesday, April =
10, 2002=20
5:25 PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
NVR</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>Katherine,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Thanks for the trailing stop =
info. Not=20
knowing any better I have been in the arbitrary 8% camp =
unless=20
there is obvious support in that area. When they say "below" a =
given=20
area - how far below? .10, .50 ??</FONT></DIV>
<DIV>----- Original Message ----- </DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; =
MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A href=3D"mailto:kmalm@earthlink.net"=20
title=3Dkmalm@earthlink.net>Katherine Malm</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> Tuesday, April =
09, 2002=20
11:26 PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
NVR</DIV>
<DIV><BR></DIV>
<DIV>Dimitri,</DIV>
<DIV> </DIV>
<DIV>There are many ways to set a trailing stop. Some use =
trend lines,=20
some use a recent area of consolidation, some use the =
volatility of=20
the stock, some use moving averages. The one thing you do =
*not* want=20
to do is choose an arbitrary number such as 8% as a trailing =
stop. You=20
run the risk of being stopped out of a stock that is =
experiencing a=20
"normal" pullback in its uptrend. I've uploaded an article on =
trailing=20
stops written by Mark Boucher to the CANSIM site. You'll find =
it=20
at:</DIV>
<DIV> </DIV>
<DIV> <A=20
=
href=3D"http://WallStreet-LLC.com/pub/TrailingStops.doc">http://WallStree=
t-LLC.com/pub/TrailingStops.doc</A><BR></DIV>
<DIV>Use a wise approach to setting your stop and you =
will be=20
more likely to find that delicate balance between protecting =
profits,=20
riding a good stock as long as possible and protecting against =
catastrophic loss.</DIV>
<DIV> </DIV>
<DIV>Katherine</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:dcka@yahoo.com" =
title=3Ddcka@yahoo.com>Dimitri=20
Katsaros</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>=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, April =
09, 2002=20
5:29 PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] =
NVR</DIV>
<DIV><BR></DIV>Thank you all for the advice on NVR... after=20
hearing<BR>all that has been said and looking at the chart,=20
I'm<BR>going to take Katherine Malm's advice by putting=20
a<BR>trailing stop. Should I do it at 8% or perhaps =
larger<BR>to=20
weather out any=20
=
volatility?<BR><BR>Thanks<BR>Dimitri<BR><BR>=3D=3D=3D=3D=3D<BR>Quiquid =
latine=20
dictum sit altum=20
=
viditur<BR><BR>__________________________________________________<BR>Do=20
You Yahoo!?<BR>Yahoo! Tax Center - online filing with =
TurboTax<BR><A=20
=
href=3D"http://taxes.yahoo.com/">http://taxes.yahoo.com/</A><BR><BR>-<BR>=
- -To=20
subscribe/unsubscribe, email "<A=20
=
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In=
=20
the email body, write "subscribe canslim" =
or<BR>-"unsubscribe=20
canslim". Do not use quotes in your=20
=
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