Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] Investor's Corner Puzzlement
Date: Tue, 23 Apr 2002 22:12:57 -0400
Previous Article (by Date): RE: [CANSLIM] Spurious Attachments "Duke Miller"
Articles sorted by: [Date]
[Author]
[Subject]
This is a multi-part message in MIME format.
- ------=_NextPart_000_0322_01C1EB14.07380670
Content-Type: multipart/alternative;
boundary="----=_NextPart_001_0323_01C1EB14.07380670"
- ------=_NextPart_001_0323_01C1EB14.07380670
Content-Type: text/plain;
charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable
I have mentioned this before, but will do so again. The methodology =
taught to me years ago by WON staffers was that you used an 8% max sell =
stop at the time, and from the price, of entry. If / once you were up =
15% from your entry, then you moved your sell stop to a trailing 15% =
stop from the then current price. If it continued to perform, you =
continued, on a daily basis, to move your sell trailing sell stop up, so =
that you were always 15% below the then current price. It was never =
clarified whether you used intraday, or closing, price for this.
The idea is simple, the first stage is to preserve capital (8% sell =
stop). The next stage is to protect against any actual loss (now up 15%, =
and beginning the use of a trailing stop). And the third stage is to =
permit your strongest performers to continue higher without shaking you =
out as they briefly correct (hence giving them a continuing trailing 15% =
range).
Tom Worley
stkguru@bellsouth.net
AIM: TexWorley
- ----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, April 23, 2002 9:58 PM
Subject: Re: [CANSLIM] Investor's Corner Puzzlement
Hi Harold,
WON only uses the 8% rule at the time of a valid breakout. The pullbacks =
referred to in the article are pullbacks within the uptrend...not at the =
time of breakout. For example, WON says that stocks that rise 20% or =
more within 8 weeks of the breakout are typically very strong and =
suggests holding on during the first consolidation. The article today is =
simply saying that if you set hard stops too tightly during the =
uptrend, you will likely be shaken out of an otherwise healthy stock =
that is simply acting "normally" in its uptrend or will get shaken out =
on intraday action where the close is otherwise healthy.
Katherine
----- Original Message -----=20
From: Harold Josephson=20
To: CANSLIM DISCUSSION GROUP (E-mail)=20
Sent: Tuesday, April 23, 2002 8:35 PM
Subject: [CANSLIM] Investor's Corner Puzzlement
=20
Tuesday's Investor's Corner seemed to illustrate that following the =
WON rule of selling when a stock has dropped 8% would have shaken you =
out of all of the top 12 winners of the 1997-2000 period. I am puzzled =
by the message here. Don't follow the WON rule?
=20
Thanks
=20
Harold Josephson
Tel: 323.850.1333
Fax: 323.512.8968
hj@hjosephson.com
=20
- ------=_NextPart_001_0323_01C1EB14.07380670
Content-Type: text/html;
charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML xmlns=3D"http://www.w3.org/TR/REC-html40" xmlns:v =3D=20
"urn:schemas-microsoft-com:vml" xmlns:o =3D=20
"urn:schemas-microsoft-com:office:office" xmlns:w =3D=20
"urn:schemas-microsoft-com:office:word" xmlns:dt =3D=20
"uuid:C2F41010-65B3-11d1-A29F-00AA00C14882"><HEAD>
<META http-equiv=3DContent-Type content=3D"text/html; =
charset=3Diso-8859-1">
<META content=3D"boldstri 011" name=3D"Microsoft Theme 2.00">
<META content=3DWord.Document name=3DProgId>
<META content=3D"MSHTML 6.00.2715.400" name=3DGENERATOR>
<META content=3D"Microsoft Word 9" name=3DOriginator><LINK=20
href=3D"cid:filelist.xml@01C1EAF5.B3E98FC0" rel=3DFile-List><!--[if gte =
mso 9]><xml>
<o:OfficeDocumentSettings>
<o:DoNotRelyOnCSS/>
</o:OfficeDocumentSettings>
</xml><![endif]--><!--[if gte mso 9]><xml>
<w:WordDocument>
<w:View>Normal</w:View>
<w:Zoom>0</w:Zoom>
<w:DocumentKind>DocumentEmail</w:DocumentKind>
<w:EnvelopeVis/>
</w:WordDocument>
</xml><![endif]-->
<STYLE>@font-face {
font-family: Trebuchet MS;
}
@page Section1 {size: 8.5in 11.0in; margin: 1.0in 1.25in 1.0in 1.25in; =
mso-header-margin: .5in; mso-footer-margin: .5in; mso-paper-source: 0; }
P.MsoNormal {
FONT-SIZE: 12pt; MARGIN: 0in 0in 0pt; COLOR: black; FONT-FAMILY: =
"Trebuchet MS"; mso-style-parent: ""; mso-pagination: widow-orphan; =
mso-fareast-font-family: "Times New Roman"; mso-bidi-font-family: "Times =
New Roman"
}
LI.MsoNormal {
FONT-SIZE: 12pt; MARGIN: 0in 0in 0pt; COLOR: black; FONT-FAMILY: =
"Trebuchet MS"; mso-style-parent: ""; mso-pagination: widow-orphan; =
mso-fareast-font-family: "Times New Roman"; mso-bidi-font-family: "Times =
New Roman"
}
DIV.MsoNormal {
FONT-SIZE: 12pt; MARGIN: 0in 0in 0pt; COLOR: black; FONT-FAMILY: =
"Trebuchet MS"; mso-style-parent: ""; mso-pagination: widow-orphan; =
mso-fareast-font-family: "Times New Roman"; mso-bidi-font-family: "Times =
New Roman"
}
H1 {
FONT-WEIGHT: normal; FONT-SIZE: 24pt; MARGIN: 12pt 0in 3pt; COLOR: =
black; FONT-FAMILY: "Trebuchet MS"; mso-pagination: widow-orphan; =
mso-bidi-font-family: Arial; mso-style-next: Normal; mso-outline-level: =
1; mso-font-kerning: 16.0pt; mso-bidi-font-weight: bold
}
H2 {
FONT-WEIGHT: normal; FONT-SIZE: 18pt; MARGIN: 12pt 0in 3pt; COLOR: =
black; FONT-FAMILY: "Trebuchet MS"; mso-pagination: widow-orphan; =
mso-bidi-font-family: Arial; mso-style-next: Normal; mso-outline-level: =
2; mso-bidi-font-weight: bold; mso-bidi-font-style: italic
}
H3 {
FONT-WEIGHT: normal; FONT-SIZE: 14pt; MARGIN: 12pt 0in 3pt; COLOR: =
black; FONT-FAMILY: "Trebuchet MS"; mso-pagination: widow-orphan; =
mso-bidi-font-family: Arial; mso-style-next: Normal; mso-outline-level: =
3; mso-bidi-font-weight: bold
}
H4 {
FONT-WEIGHT: normal; FONT-SIZE: 12pt; MARGIN: 12pt 0in 3pt; COLOR: =
black; FONT-FAMILY: "Trebuchet MS"; mso-pagination: widow-orphan; =
mso-style-next: Normal; mso-outline-level: 4; mso-bidi-font-weight: bold
}
H5 {
FONT-WEIGHT: normal; FONT-SIZE: 10pt; MARGIN: 12pt 0in 3pt; COLOR: =
black; FONT-FAMILY: "Trebuchet MS"; mso-pagination: widow-orphan; =
mso-style-next: Normal; mso-outline-level: 5; mso-bidi-font-weight: =
bold; mso-bidi-font-style: italic
}
H6 {
FONT-WEIGHT: normal; FONT-SIZE: 8pt; MARGIN: 12pt 0in 3pt; COLOR: =
black; FONT-FAMILY: "Trebuchet MS"; mso-pagination: widow-orphan; =
mso-style-next: Normal; mso-outline-level: 6; mso-bidi-font-weight: bold
}
A:link {
COLOR: #990000; TEXT-DECORATION: underline; text-underline: single
}
SPAN.MsoHyperlink {
COLOR: #990000; TEXT-DECORATION: underline; text-underline: single
}
A:visited {
COLOR: #336699; TEXT-DECORATION: underline; text-underline: single
}
SPAN.MsoHyperlinkFollowed {
COLOR: #336699; TEXT-DECORATION: underline; text-underline: single
}
P.MsoAutoSig {
FONT-SIZE: 12pt; MARGIN: 0in 0in 0pt; COLOR: black; FONT-FAMILY: =
"Trebuchet MS"; mso-pagination: widow-orphan; mso-fareast-font-family: =
"Times New Roman"; mso-bidi-font-family: "Times New Roman"
}
LI.MsoAutoSig {
FONT-SIZE: 12pt; MARGIN: 0in 0in 0pt; COLOR: black; FONT-FAMILY: =
"Trebuchet MS"; mso-pagination: widow-orphan; mso-fareast-font-family: =
"Times New Roman"; mso-bidi-font-family: "Times New Roman"
}
DIV.MsoAutoSig {
FONT-SIZE: 12pt; MARGIN: 0in 0in 0pt; COLOR: black; FONT-FAMILY: =
"Trebuchet MS"; mso-pagination: widow-orphan; mso-fareast-font-family: =
"Times New Roman"; mso-bidi-font-family: "Times New Roman"
}
SPAN.EmailStyle15 {
COLOR: black; mso-style-type: personal-compose
}
DIV.Section1 {
page: Section1
}
</STYLE>
<!--[if gte mso 9]><xml>
<o:shapedefaults v:ext=3D"edit" spidmax=3D"1026"/>
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext=3D"edit">
<o:idmap v:ext=3D"edit" data=3D"1"/>
</o:shapelayout></xml><![endif]--></HEAD>
<BODY lang=3DEN-US style=3D"tab-interval: .5in" vLink=3D#336699 =
link=3D#990000=20
bgColor=3Dwhite background=3Dcid:032101c1eb35$8cdcf710$9300a8c0@TOMSBOX>
<DIV><FONT face=3DArial>I have mentioned this before, but will do so =
again. The=20
methodology taught to me years ago by WON staffers was that you used an =
8% max=20
sell stop at the time, and from the price, of entry. If / once you were =
up 15%=20
from your entry, then you moved your sell stop to a trailing 15% stop =
from the=20
then current price. If it continued to perform, you continued, on a =
daily basis,=20
to move your sell trailing sell stop up, so that you were always 15% =
below the=20
then current price. It was never clarified whether you used intraday, or =
closing, price for this.</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>The idea is simple, the first stage is to =
preserve capital=20
(8% sell stop). The next stage is to protect against any actual loss =
(now up=20
15%, and beginning the use of a trailing stop). And the third stage is =
to permit=20
your strongest performers to continue higher without shaking you out as =
they=20
briefly correct (hence giving them a continuing trailing 15%=20
range).</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=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine Malm</A>=20
</DIV>
<DIV><B>To:</B> <A title=3Dcanslim@lists.xmission.com=20
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
</DIV>
<DIV><B>Sent:</B> Tuesday, April 23, 2002 9:58 PM</DIV>
<DIV><B>Subject:</B> Re: [CANSLIM] Investor's Corner =
Puzzlement</DIV></DIV>
<DIV><BR></DIV>
<DIV><FONT face=3D"Trebuchet MS">Hi Harold,</FONT></DIV>
<DIV><FONT face=3D"Trebuchet MS"></FONT> </DIV>
<DIV><FONT face=3D"Trebuchet MS">WON only uses the 8% rule at the time =
of a valid=20
breakout. The pullbacks referred to in the article are pullbacks within =
the=20
uptrend...not at the time of breakout. For example, WON says that stocks =
that=20
rise 20% or more within 8 weeks of the breakout are typically very =
strong and=20
suggests holding on during the first consolidation. The article today is =
simply=20
saying that if you set hard stops too tightly during the uptrend, =
you will=20
likely be shaken out of an otherwise healthy stock that is simply acting =
"normally" in its uptrend or will get shaken out on intraday action =
where the=20
close is otherwise healthy.</FONT></DIV>
<DIV><FONT face=3D"Trebuchet MS"></FONT> </DIV>
<DIV><FONT face=3D"Trebuchet MS">Katherine</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-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 title=3Dhj@hjosephson.com href=3D"mailto:hj@hjosephson.com">Harold=20
Josephson</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
href=3D"mailto:canslim@lists.xmission.com">CANSLIM DISCUSSION GROUP =
(E-mail)</A>=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, April 23, 2002 =
8:35=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] Investor's =
Corner=20
Puzzlement</DIV>
<DIV><BR></DIV><IMG class=3Dshape style=3D"DISPLAY: none; WIDTH: 0px; =
HEIGHT: 0px"=20
height=3D0 src=3D"cid:image001.gif@01C1EAF5.B3E98FC0" width=3D0=20
v:src=3D"cid:image001.gif@01C1EAF5.B3E98FC0" =
v:shapes=3D"_x0000_Mail"><!--[if gte mso 9]><xml>
<v:background id=3D"_x0000_s1025" o:bwmode=3D"white" =
o:targetscreensize=3D"800,600">
<v:fill src=3D"cid:image001.gif@01C1EAF5.B3E98FC0" o:title=3D"bstrbk" =
type=3D"frame"/>
</v:background></xml><![endif]-->=20
<DIV class=3DSection1>
<P class=3DMsoNormal><SPAN class=3DEmailStyle15><FONT =
face=3D"Trebuchet MS"=20
color=3Dblack size=3D3><SPAN style=3D"FONT-SIZE: 12pt">Tuesday=92s =
Investor=92s Corner=20
seemed to illustrate that following the WON rule of selling when a =
stock has=20
dropped 8% would have shaken you out of all of the top 12 winners of =
the=20
1997-2000 period.<SPAN style=3D"mso-spacerun: yes"> </SPAN>I am =
puzzled by=20
the message here.<SPAN style=3D"mso-spacerun: yes"> =
</SPAN>Don=92t follow=20
the WON rule?<o:p></o:p></SPAN></FONT></SPAN></P>
<P class=3DMsoNormal><SPAN class=3DEmailStyle15><FONT =
face=3D"Trebuchet MS"=20
color=3Dblack size=3D3><SPAN style=3D"FONT-SIZE: 12pt"><![if =
!supportEmptyParas]><![endif]> <o:p></o:p></SPAN></FONT></SPAN></P>
<P class=3DMsoAutoSig><FONT face=3D"Trebuchet MS" color=3Dblack =
size=3D3><SPAN=20
style=3D"FONT-SIZE: 12pt">Thanks<o:p></o:p></SPAN></FONT></P>
<P class=3DMsoAutoSig><FONT face=3D"Trebuchet MS" color=3Dblack =
size=3D3><SPAN=20
style=3D"FONT-SIZE: 12pt"><![if =
!supportEmptyParas]><![endif]> <o:p></o:p></SPAN></FONT></P>
<P class=3DMsoAutoSig><!--[if supportFields]><span =
style=3D'mso-element:field-begin'></span><span=20
style=3D"mso-spacerun: yes"> </span>AUTOTEXTLIST \s "E-mail=20
Signature" <span =
style=3D'mso-element:field-separator'></span><![endif]--><B><I><SPAN=20
style=3D"FONT-WEIGHT: bold; FONT-STYLE: italic">Harold=20
Josephson<o:p></o:p></SPAN></I></B></P>
<P class=3DMsoAutoSig><B><I><FONT face=3D"Trebuchet MS" color=3Dblack =
size=3D3><SPAN=20
style=3D"FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-STYLE: =
italic">Tel:<SPAN=20
style=3D"mso-spacerun: yes"> =20
</SPAN>323.850.1333<o:p></o:p></SPAN></FONT></I></B></P>
<P class=3DMsoAutoSig><B><I><FONT face=3D"Trebuchet MS" color=3Dblack =
size=3D3><SPAN=20
style=3D"FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-STYLE: =
italic">Fax:<SPAN=20
style=3D"mso-spacerun: yes"> =20
</SPAN>323.512.8968<o:p></o:p></SPAN></FONT></I></B></P>
<P class=3DMsoAutoSig><B><I><FONT face=3D"Trebuchet MS" color=3Dblack =
size=3D3><SPAN=20
style=3D"FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-STYLE: italic"><A=20
=
href=3D"mailto:hj@hjosephson.com">hj@hjosephson.com</A></SPAN></FONT></I>=
</B><o:p></o:p></P>
<P class=3DMsoNormal><!--[if supportFields]><span =
style=3D'mso-element:field-end'></span><![endif]--><![if =
!supportEmptyParas]><![endif]> <o:p></o:p></P></DIV></BLOCKQUOTE></B=
ODY></HTML>
- ------=_NextPart_001_0323_01C1EB14.07380670--
- ------=_NextPart_000_0322_01C1EB14.07380670
Content-Type: image/gif;
name="image001.gif"
Content-Transfer-Encoding: quoted-printable
Content-ID: <032101c1eb35$8cdcf710$9300a8c0@TOMSBOX>
R0lGODlhHgABAHcAACH/C01TT0ZGSUNFOS4wDQAAAAFzUkdCAK7OHOkAIf8LTVNPRkZJQ0U5L=
jAY
AAAADG1zT1BNU09GRklDRTkuMALxmbSWACH/C01TT0ZGSUNFOS4wGAAAAAxjbVBQSkNtcDA3M=
TIC
AAIBPjG4mQAsAAAAAB4AAQCB2NjY0NDQAQIDAQIDAgiEHZmHGgxcKAA7
- ------=_NextPart_000_0322_01C1EB14.07380670--
- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim". Do not use quotes in your email.
Previous Article (by Date): RE: [CANSLIM] Spurious Attachments "Duke Miller"
Articles sorted by: [Date]
[Author]
[Subject]