Re: [CANSLIM] CSTR CVH Failed breakouts Post Analysis

From: Ian <ianstm@shaw.ca>
Subject: Re: [CANSLIM] CSTR CVH Failed breakouts Post Analysis
Date: Tue, 03 Sep 2002 09:26:45 -0700

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John:

One thing you might want to revisit is your selection of breakout points for
CSTR. As early as APril, CSTR had traded over $34 for a week, on higher
volume. It flies in the face of what a breakout point is meant to be (a
removal of significant known overhead resistance) to buy a stock just $1.50
below where a lot of shares have changed hands in recent days.

IMHO, a break through $35.50, on a large volume increase, on a third attempt
would have been much safer, from a historical perspective.

Ian


- ----- Original Message -----
From: John Calkins <jcalkins@olypen.com>
To: <canslim@lists.xmission.com>
Sent: Tuesday, September 03, 2002 4:52 AM
Subject: [CANSLIM] CSTR CVH Failed breakouts Post Analysis


> Ok, now that I have admitted that I didn't make a huge blunder buying CSTR
> and CVH on their breakouts.  I need advice on how I can improve after
> loosing a large percentage on these two stocks.
>
> I'm unable to be at a computer during the day, so I check the volume and
> price with TD Waterhouse Phone Trade Direct.  My first pick like many was
> CSTR.  On August 15th it brokeout and I purchased it at $32.50.  I set my
> Sell Stop at 8% below my purchase price at $29.90.  My stop order was
> executed at $26.61 after the gap down.  I guess I consider myself lucky it
> didn't execute at $24 what ever because of the price action for the day.
My
> second trade was with CVH.  It broke out on August 19th and was able to
> purchase it at $33.83.  The sell stop order was again placed at 8% below
at
> $31.12.  My sell stop was executed at $28.75.
>
> This is the most difficult time I have had with my orders yet.  I have
> usually been able to get much closer to my stop price.  I can't afford to
> loose and average of 16% or double the CANSLIM method.  I have heard that
it
> is unwise to "Tip you hand" by having a stop order out there for the
market
> makers to grab.  But if I'm such a small fish out there, then how on earth
> could my little stop order influence anyone?  Is there a trading platform
> that is better at setting up unattended orders.  I've heard of trailing
> stops etc. but aren't these just ideas or soft stops that you have to
watch
> the intra-day action of the market to take advantage of?
>
> I just can't seem to get out of the shoot...I suppose along with everyone
> else.  I understand that Due Diligence might have helped on these two
> stocks, but who would have ever thought both of these would have gapped
over
> my stop orders like this!
>
> I sure would like to know how you buy and sell when you can't glue
yourself
> to a monitor all day long.  I hope that the digital cell tower shows up
> close to where I work so I can at least get price and volume alerts sent
to
> me.  I had this before and it worked better than this stop order crapola.
>
> (JC)
>
>
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