Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] An Example for my question
Date: Thu, 27 Jun 2002 23:07:38 -0400
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Erik, I would disagree with you on one very fundamental point: you really
do want your cost basis increasing from the purchase price, if you are
adding to the position. That means the stock is continuing higher. I have
had any number of good performing stocks get away from me, JCOM being just
the latest example (up another 15% today alone), where I hesitated to buy
more because it was higher than my first purchase price. One reason I try to
look at everything from a total position / average price per share basis.
- ----- Original Message -----
From: "Erik_Harris3745" <erik_harris3745@yahoo.com>
To: <canslim@lists.xmission.com>
Sent: Thursday, June 27, 2002 2:01 PM
Subject: RE: [CANSLIM] An Example for my question
Hi Mike,
My interpretation from the book is that you would add anywhere from 2%-5%
from the pivot point (on 2x volume, etc). In this market however, I
personally would not attempt it. With the volitility from one day to the
next, I do not want my cost basis increasing from the purchase price. Just
my opinion.
"2. If you buy at the first breakout, and the stock rises, lets say
15%, and then starts to go into a new cwh , that might consolidate 20-30%,
would you end up watching the charts and sell out and lock in profits, then
buy back in at the next breakout? what about the case where the stock is up
30% from the first breakout. Do you end up riding it down to 0% gain, (not
selling because it is not a 7-8% loss) and hang on for the long term?"
Selling and buying back depends on your trading style and the market.
Again, in this volitile market, locking profits and taking a 15% - 20%
gain might not be a bad idea. It also depends on how quickly the stock
rises. From memory I recall HTMMIS suggesting that you hold a stock that
rises quickly within a few weeks. However, I would never let a 20-30% gain
turn into a loss. My interpertation of HTMMIS is that after a resonable
gain, you set a sell point above your buy price.
My opinion is that HTMMIS provides very good rules. How we interpret and
implement them depends on many factors including personal style, market,
etc.
Erik
- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of
michael_niemotka@baxter.com
Sent: Thursday, June 27, 2002 11:18 AM
To: canslim@lists.xmission.com
Subject: [CANSLIM] An example for my question
All,
Based on my previous question, I will include COCO, which I recently
purchased at $31.47, which was slightly above 5% over the pivot of $29.54.
The stock is moving up in the past few days, slowly, suck that I am up
about 0.5%. So the question becomes: when would I add more to my position
if the stock still looks like a good performer?
Thanks
Mike Niemotka , PE
Sr. Principal Engineer
Baxter Healthcare Corporation
Route 120 & Wilson Road
Round Lake, IL 60073
Tel (847) 270-4075
Fax (847) 270-4525
michael_niemotka@baxter.com
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