Re: [CANSLIM] stop losses and profits

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] stop losses and profits
Date: Fri, 16 Aug 2002 13:09:30 -0500

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HI Mike,

I think you'll get a hundred different answers on this one, so I'll just
answer from my personal point of view.

If a stock breaks out of a well-formed base on volume, then takes 6 weeks to
rise 10 or 15 percent, then I sure wouldn't want to risk 8% loss at that
point, even if it were falling back "normally" as you suggest. To me that
means that no sell signals were triggered on the way up, and that the
general pattern included up days on higher volume than down days, support at
the 50 day moving average, etc. My personal preference, however, would be to
move my stop to breakeven or slightly below (3-4% max, depending on market
conditions) if the stock had risen like this.

Katherine


- ----- Original Message -----
From: <michael_niemotka@baxter.com>
To: <canslim@lists.xmission.com>
Sent: Friday, August 16, 2002 9:17 AM
Subject: [CANSLIM] stop losses and profits


| Group,
|
| In reading WON, he makes a statement that you should never let a stock in
| which you are up 10-15% turn into a loss, but I was wondering you have
| interpreted that along with the sell at no more than an 8% loss rule.
|
| Say you buy a stock, at a breakout, and it rises 10-15% over a few (6+
| weeks), and then is started to correct....Do you sell at you break even
| point, or do you allow it to go to your 8% loss point before selling?
This
| is assuming that the stock is NOT giving any strong sell signals, but
| appears to be pulling back "normally".
|
| 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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