Re: [CANSLIM] Investor's Corner Puzzlement

From: Ian <ianstm@shaw.ca>
Subject: Re: [CANSLIM] Investor's Corner Puzzlement
Date: Wed, 24 Apr 2002 09:23:28 -0700

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Bill:

I agree. During the first 3 weeks of a breakout, I never want to sell unless
the stock closes below its trigger point. For me, it is essential to allow a
lot of 'wiggle' room as you call it. The stronger the market, the less
important this becomes, as strong performers are less likely to test the
trigger point after 1-2 days.

Ian


- ----- Original Message -----
From: Bill Triffet <btriffet@earthlink.net>
To: <canslim@lists.xmission.com>
Sent: Wednesday, April 24, 2002 8:34 AM
Subject: Re: [CANSLIM] Investor's Corner Puzzlement


> Tom,
>
> I think part of the confusion here for some of us is the added rule of,
> "Don't let a profit turn into a loss".
>
> If one had a few failed b/o's and then finally hits one that gets to 15%
> quickly, it would stand to reason that they'd like to preserve that gain -
> hence the self imposed tight stops. I also found out first hand that on a
> fast downwards drop, your 15% trailing stop (hard) can quickly become
> 17%-18% for us little retail investors.
>
> Still, for me I'm willing to let a stock fall back just to it's breakout
> from 15%. I don't like to see it, but hopefully it will give the stock
> enough "wiggle room".
>
> -Bill
>
>
>
>
>
>
> ----- Original Message -----
> From: "Tom Worley" <stkguru@bellsouth.net>
> To: <canslim@lists.xmission.com>
> Sent: Tuesday, April 23, 2002 7:12 PM
> Subject: Re: [CANSLIM] Investor's Corner Puzzlement
>
>
> 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 -----
> From: Katherine Malm
> To: canslim@lists.xmission.com
> 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 -----
>   From: Harold Josephson
>   To: CANSLIM DISCUSSION GROUP (E-mail)
>   Sent: Tuesday, April 23, 2002 8:35 PM
>   Subject: [CANSLIM] Investor's Corner Puzzlement
>
>
>
>   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?
>
>
>
>   Thanks
>
>
>
>   Harold Josephson
>
>   Tel:   323.850.1333
>
>   Fax:  323.512.8968
>
>   hj@hjosephson.com
>
>
>
>
>
>
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