Go to Jeff Salisbury LWGate Home Page.From: "NANCY POLCARO" <zillagirl@msn.com>
Subject: Re: [CANSLIM] stop losses and profits
Date: Fri, 16 Aug 2002 11:47:28 -0700
Previous Article (by Subject): Re: [CANSLIM] Recent activity "Katherine Malm"
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Katherine-let me see if I am following correctly please. My question is that previously I understood that after the third rise in a base formation a stock may correct by dropping below the previous base and then starting up again if all is well with the stock. Then the bases start to be recounted again. In this case, if you just bought in during the third rise in the base, which from my understanding would probably go up between 15%(Mikes figure) and 25%( the amount of each rise in a base of a healthy stock) you would sell(not you personally but someone with my amount of experience or the like) before the 8% drop, to protect your gain. Then follow the stock and watch for a buy in again at some point depending on how the stock acts from this point on? Is that close to correct ??? Thanks for your thoughts Nancy >From: "Katherine Malm" <kmalm@earthlink.net> >Reply-To: canslim@lists.xmission.com >To: <canslim@lists.xmission.com> >Subject: Re: [CANSLIM] stop losses and profits >Date: Fri, 16 Aug 2002 13:09:30 -0500 > >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 >| >| >| >| - >| -To subscribe/unsubscribe, email "majordomo@xmission.com" >| -In the email body, write "subscribe canslim" or >| -"unsubscribe canslim". Do not use quotes in your email. > > >- >-To subscribe/unsubscribe, email "majordomo@xmission.com" >-In the email body, write "subscribe canslim" or >-"unsubscribe canslim". Do not use quotes in your email. _________________________________________________________________ Send and receive Hotmail on your mobile device: http://mobile.msn.com - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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