Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] 8 week / 20% rule question
Date: Mon, 19 Aug 2002 10:31:42 -0500
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This is a multi-part message in MIME format. - ------=_NextPart_000_02F7_01C2476B.9BEDF050 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Marc, My understanding has always been that WON was buying at the pivot and = therefore all of his discussions were based on the "optimal buy point" = which were then one in the same. I pulled my copy of the new edition of = HTMMIS to be sure, because I think this is somewhat open to = interpretation.=20 from p. 103: "...I'd buy each stock exactly at the pivot buy point and = have the discipline not to pyramid or add to my position more than 5% = past that point. Then I'd sell each stock when it was up 20%." When pyramiding and determining the 8% stop loss sell rule, for example, = WON suggests that the "price" you use is your choice, either an average = price or the actual purchase price for each lot. However, the discussion = on p. 103 is not a "sell rule" as much as it is a description of the = evolution of his portfolio management, as he explains the rationale for = taking some profits along the way. Later, he suggests under sell rules: from p. 110: "If you cut all losses at 7% or 8%, take a few profits when = up 25% or 30%. Compounding three gains like this could give you 100% or = more gain. However, don't sell for 25% or 30% gains any market leader = with institutional support that's up 20% in only one, two or three weeks = from the pivot buy point on a proper base. Those could be your big = leaders and should be held for a potentially greater profit." I think the key here is that he is suggesting a rise from the pivot, not = from the buy price. (Somewhat related: He also refers to the pivot as = the point from which you calculate gains for determining base count.) Katherine - ----- Original Message -----=20 From: "Marc Deiter" <dites@yahoo.com> To: <canslim@lists.xmission.com> Sent: Monday, August 19, 2002 10:08 AM Subject: [CANSLIM] 8 week / 20% rule question |=20 | I don't currently have HTMMIS with me or I would look this up, but | when calculating if a stock has advanced 20% in 8 weeks, is the | purchase price or the pivot point used? The difference can be up to | 5%. |=20 | Thanks, | Marc |=20 | __________________________________________________ | Do You Yahoo!? | HotJobs - Search Thousands of New Jobs | http://www.hotjobs.com |=20 | - | -To subscribe/unsubscribe, email "majordomo@xmission.com" | -In the email body, write "subscribe canslim" or | -"unsubscribe canslim". Do not use quotes in your email. - ------=_NextPart_000_02F7_01C2476B.9BEDF050 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2716.2200" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY> <DIV>Hi Marc,</DIV> <DIV> </DIV> <DIV>My understanding has always been that WON was buying at the pivot = and=20 therefore all of his discussions were based on the "optimal buy point" = which=20 were then one in the same. I pulled my copy of the new edition of HTMMIS = to be=20 sure, because I think this is somewhat open to interpretation. </DIV> <DIV> </DIV> <DIV>from p. 103: "...I'd buy each stock exactly at the pivot buy point = and have=20 the discipline not to pyramid or add to my position more than 5% past = that=20 point. Then I'd sell each stock when it was up 20%."</DIV> <DIV> </DIV> <DIV>When pyramiding and determining the 8% stop loss sell rule, for = example,=20 WON suggests that the "price" you use is your choice, either an average = price or=20 the actual purchase price for each lot. However, the discussion on p. = 103 is not=20 a "sell rule" as much as it is a description of the evolution of his = portfolio=20 management, as he explains the rationale for taking some profits along = the way.=20 Later, he suggests under sell rules:</DIV> <DIV> </DIV> <DIV>from p. 110: "If you cut all losses at 7% or 8%, take a few profits = when up=20 25% or 30%. Compounding three gains like this could give you 100% or = more gain.=20 However, don't sell for 25% or 30% gains any market leader with = institutional=20 support that's up 20% in only one, two or three weeks from the pivot buy = point=20 on a proper base. Those could be your big leaders and should be held for = a=20 potentially greater profit."</DIV> <DIV> </DIV> <DIV>I think the key here is that he is suggesting a <EM>rise from the=20 pivot</EM>, not from the buy price. (Somewhat related: He also refers to = the=20 pivot as the point from which you calculate gains for determining base=20 count.)</DIV> <DIV> </DIV> <DIV>Katherine</DIV> <DIV> </DIV> <DIV>----- Original Message -----=20 <DIV>From: "Marc Deiter" <<A=20 href=3D"mailto:dites@yahoo.com">dites@yahoo.com</A>></DIV> <DIV>To: <<A=20 href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= ></DIV> <DIV>Sent: Monday, August 19, 2002 10:08 AM</DIV> <DIV>Subject: [CANSLIM] 8 week / 20% rule question</DIV></DIV> <DIV><BR></DIV>| <BR>| I don't currently have HTMMIS with me or I would = look=20 this up, but<BR>| when calculating if a stock has advanced 20% in 8 = weeks, is=20 the<BR>| purchase price or the pivot point used? The difference = can be up=20 to<BR>| 5%.<BR>| <BR>| Thanks,<BR>| Marc<BR>| <BR>|=20 __________________________________________________<BR>| Do You = Yahoo!?<BR>|=20 HotJobs - Search Thousands of New Jobs<BR>| <A=20 href=3D"http://www.hotjobs.com">http://www.hotjobs.com</A><BR>| <BR>| = - -<BR>| -To=20 subscribe/unsubscribe, email "<A=20 href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>| = - -In the=20 email body, write "subscribe canslim" or<BR>| -"unsubscribe = canslim". Do=20 not use quotes in your email.</BODY></HTML> - ------=_NextPart_000_02F7_01C2476B.9BEDF050-- - - - -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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