Re: [CANSLIM] sell rules help

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] sell rules help
Date: Fri, 30 Aug 2002 10:12:10 -0500

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Top of Thread: [CANSLIM] sell rules help michael_niemotka@baxter.com
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Hi Mike,

Money management under CANSLIM is a personal choice and not particularly
guided by sell rules. Here's some thoughts on selling and money management
in general:

- -The "up 20% in less than 8 wks may be a sign of a strong stock, so consider
holding through the next correction" guideline is only from a valid buy
point (valid breakout on volume from a valid base). If you're up 20% but
entered early, then you're not talking apples and apples.

- -If you enter on a valid breakout, then money management past that point is
a matter of choice. For example, you could:
   --Take 1/2 off the table after it's up a certain % and let the rest ride
with normal sell rules
  --Keep all of it on the table and manage the entire position with 7-8%
stop loss.
  --Keep it all on the table but manage stops on 1/2 differently than the
other 1/2. For example, break even on 1/2, 7-8% on the other half
  --Sell all of it and be happy with the return. (You have to have no
regrets if it continues higher)
  -- Etc.

See, no hard and fast. The most important concept to take away from COCO is
that you have to have a plan *before* you enter the position or you will
waffle and regret.

Katherine


- ----- Original Message -----
From: <michael_niemotka@baxter.com>
To: <canslim@lists.xmission.com>
Sent: Friday, August 30, 2002 9:13 AM
Subject: [CANSLIM] sell rules help


| Hi all,
|
| I know I asked about COCO yesterday, but now as of this morning, I am up
| 20% , and am thinking hard about selling at least some to lock in that
kind
| of profit.  However, it has grown to this point after only a week, so is
| that a sign of real strength, and therefore does it need to be held for at
| least 8 weeks?
|
| Help!
|
| Thanks
|
| Mike
|
|
| 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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