Re: [CANSLIM] CSTR

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] CSTR
Date: Tue, 27 Aug 2002 21:50:10 -0400
Next Article (by Subject): Re: [CANSLIM] CSTR "Tom Worley"
Previous Article (by Subject): Re: [CANSLIM] CSTR "Norman"
Top of Thread: Re: [CANSLIM] CSTR "Norman"
Next in Thread: Re: [CANSLIM] CSTR "Tom Worley"
Articles sorted by: [Date] [Author] [Subject]
Mike, different people will interpret the rule different ways, but I follow
(at least sometimes) the rule trained into me by WON acct executives as well
as an article (I am still searching for a copy but not hopeful) interviewing
WON in the magazine Registered Representative (trade journal for brokers).
In it, he indicated using the 8% rule initially to protect against large
loss of capital. Once you were up 15%, raise the stop loss to your entry to
protect against a simple loss. As (if) the stock continued to move higher,
continue to raise the stop loss to trail the current price by 15%. Now you
are beginning to protect profits. Thus, if CSTR had already moved up at
least 20% or so from your purchase price (assuming it conformed to the
pivot), then it closed today at or around where your stop loss should have
already been.

On using stop losses, it can be difficult to impossible to enter the order
on many (most??) NASDAQ stocks even when they are higher priced and very
liquid. Yes, you are showing your hand to your brokerage house and / or the
market maker where they may put the order. And if the stock gaps down below
your limit, you may sell even greater than your trailing 15%. Trying to use
a sell stop limit on a NASDAQ stock is even more difficult.

Entering a stop loss order on a listed (NYSE, AMEX) stock can be even more
dangerous, as it likely ends up with the floor specialist, rather than one
of many MMers. So the specialist sees a far greater universe of limit
orders, and may be tempted to shake the market for his own purposes.

Having not sold, you now need (like tonight) to evaluate whether you would
even consider buying the stock at this price and with the chart (and news?)
of today. That should help you decide what you should do tomorrow.

- ----- Original Message -----
From: <michael_niemotka@baxter.com>
To: <canslim@lists.xmission.com>
Sent: Tuesday, August 27, 2002 10:54 AM
Subject: Re: [CANSLIM] CSTR



I know the rule...it REALLY sucks though when because you cannot watch the
markets every second, and a stock drops bottom like this you are STUCK with
a loss much bigger than the 8% max.  I had tried stop limit orders before
but was told that many times they don't help in a situation like this if it
drops very fast, and you have the added disadvantage of "showing" you hand
to the MM.

Time will tell!


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



                    Norman
                    <theboyd@tisd.net>            To:
canslim@lists.xmission.com
                    Sent by:                      cc:
                    owner-canslim@lists.xm        Subject:     Re: [CANSLIM]
CSTR
                    ission.com


                    08/27/2002 09:44 AM
                    Please respond to
                    canslim






It has dipped below the 8% rule.  CAN SLIM dictates you should have already
sold; if you're playing CAN SLIM.  If not, then good luck, you're gonna
need
here.

Norm
- ----- Original Message -----
From: <michael_niemotka@baxter.com>
To: <canslim@lists.xmission.com>
Sent: Tuesday, August 27, 2002 9:24 AM
Subject: [CANSLIM] CSTR


> Does anyone know what is going on with this stock?  Got in late to the
> office today and it is down 18%!!!
>
> I know we are supposed to sell at 7-8%, but now do I sell anyway, or wait
> it out to see if the day may turn a bit?
>
> 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.







- -
- -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.
Go to Jeff Salisbury LWGate Home Page.