Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] CSTR CVH Failed breakouts Post Analysis
Date: Fri, 6 Sep 2002 18:17:56 -0500
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Hi Dave,
Ah...and therein lies the rub..... WON talks about institutions "handing =
off stock at the top"... I think that's what the I-Watch chart =
demonstrates. See the price action on the stock leading into 8/26? =
During that time, there was a lot of institutional sell interest. On the =
gap down day and for a few days after, the institutions were sending out =
buy interest messages. If nobody were buying, the price would've dropped =
like a stone and never recovered. No way to tell *who* the sellers and =
buyers were, but shares were certainly changing hands.
Just as a "disclaimer" of sorts, the I-Watch site only shows buy and =
sell interest messages, so it's not going to be a completely accurate =
picture of the activity. It's good enough to give clues, however and so =
I find it useful. Here's the link that gives a full explanation of the =
indicators and how to use them: =
http://iw.thomsonfn.com/iwatch/help/iw_advantages.htm
Katherine
----- Original Message -----=20
From: david frank=20
To: canslim@lists.xmission.com=20
Sent: Friday, September 06, 2002 6:12 PM
Subject: Re: [CANSLIM] CSTR CVH Failed breakouts Post Analysis
Katherine, I am confused about this CSTR Thomson graph. It shows heavy =
institutional selling on 8/26/02. which was an nice low volume up day, =
and heavy institutional buying on 8/27/02, which was that heavy volume, =
gapped down day, losing up to 20%+. Are these graphs really helpful or =
am I missing it all. Thank you, dave
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Thursday, September 05, 2002 9:27 AM
Subject: Re: [CANSLIM] CSTR CVH Failed breakouts Post Analysis
Hi Sol,
The I-Watch site is just a way of looking at institutional v. retail =
buying and a summary of institutional buying vs. selling "interest." =
There's really no direct correlation between what you see here and the =
actual volume on the stock, but it does give a clue as to which =
direction the institutional buyers are leaning. I've attached a quick =
mark up of the monthly summary so you can see what I was looking at on =
the chart.=20
http://WallStreet-LLC.com/canslim/CSTRIWatch090402.jpg
The Institutional interest at 2:1 is actually a *good* thing if the =
interest is primarily buying interest. I only get nervous if most of the =
activity is institutional selling interest and/or most of the activity =
pushing the price up is retail.
Katherine
----- Original Message -----=20
From: Sol Mayer=20
To: canslim@lists.xmission.com=20
Sent: Thursday, September 05, 2002 9:01 AM
Subject: Re: [CANSLIM] CSTR CVH Failed breakouts Post Analysis
Katherine=20
Firstly, thank you for your informative links almost everyone goes =
into my "favorites"=20
Concrerning the failed b/o of CSTR from 8/16 until the stk broke =
down all the action was on low volume so I'd think even though the =
institutional vol. was 3:1 on 8/22 I probably wouldn't have thought it =
to be distribution I would have thought it was just consolidation of b/o =
on low vol. . Also, the monthly institutional 2:1 volume I would have =
attributed to buying the b/o Obviously I missed something can you =
clarify.=20
Thanks=20
Katherine Malm wrote:=20
Hi James,
I'll add to John's "thanks for a great post" as it's info like =
this that
helps bring out the more subtle clues when making buy/sell =
decisions. I've
only recently gotten into the habit of looking at hourly charts, =
as DGO
didn't have this feature in the older version. Your post is a =
great insight
as to how this can be helpful as a sanity check on price/volume =
action.
Here's a resource I use regularly which also helps pick up on =
the more
subtle aspects of buying/selling in the market:
http://makeashorterlink.com/?J1B8643B1 (Thomspon I-Watch, view =
8/22)
This shows the trend in institutional vs. retail buying/selling =
over a
period of time. The link above is for the view on 8/22, where =
it's clear
there's heavy sell interest by institutions. (that day, about =
3:1
Institutions:Retail activity, and 2:1 for the month to that =
point.) Click to
a monthly view and the heavy sell interest shows up leading into =
the gap
down.
http://makeashorterlink.com/?N6C8523B1 (view to date, 1 month)
Katherine
----- Original Message -----
From: "John Calkins"=20
To:=20
Sent: Thursday, September 05, 2002 7:16 AM
Subject: Re: [CANSLIM] CSTR CVH Failed breakouts Post Analysis
| Hi James,
|
| Thanks for your incredible responce to my Failed Breakout and =
Stops! I've
| tried to look at the intraday charts before but didn't take =
them seriously
| enough I guess. I have noted before that big moves on high =
volume during
| the day seemed to be connected to some news or something, but =
was afraid
it
| was just market makers or day trading. I can't get more than =
10 days ago
at
| BigCharts for a history on CSTR for the time frame but I think =
I
understand
| that when you see a CWH pattern within a 5 day then watch for =
a handle to
| form or breakdown or up in price with high volume. Do you look =
at
BigCharts
| for this intraday charting and what is you setting preference, =
such as 5
or
| 10 day/ 1 hour or 15 min.? I had been getting my volume/price =
information
| each day from my telephone service with TD Waterhouse but it =
looks like
your
| intra-day charts work much better.
|
|
|
|
|
|
| ---- Original Message -----
| From: "James Bond"=20
| To:=20
| Sent: Tuesday, September 03, 2002 6:44 PM
| Subject: Re: [CANSLIM] CSTR CVH Failed breakouts Post Analysis
|
|
| > CSTR presents an interesting example of the importance
| > of intraday charts. There is no clue of impending
| > trouble on the daily chart until the stock broke down.
| > The intraday chart, however, telegraphed the bad news
| > well in advance.
| >
| > Like many other people, I too cannot follow the market
| > during the day and have to check charts during the
| > evening. When I have a position open, I check the
| > chart every night with no exception.
| >
| > On Thursday, Aug 22, when this rally was still
| > advancing, I was surprised that evening to see many
| > bearish charts among the leading stocks. For example,
| > FCN had a deterioting relative strength, CCR made a
| > new high but its relative strength lagged, DORL gapped
| > to a new high but saw no progress in daily price
| > (distribution), and PIXR had formed an evening star
| > candlestick pattern. If one or two stocks were acting
| > poorly it probably wouldn't have bothered me so much.
| > When most of the leading stocks were showing signs of
| > weakness the market was in trouble. At that time I was
| > long CCR, CSTR, DORL, NUTR, and PIXR. My first
| > decision was to sell CCR, DORL and PIXR at the open
| > next morning, and but to keep CSTR and NUTR.
| >
| > I changed my mind when I looked at the intraday chart
| > for CSTR. On the daily chart, CSTR had formed an
| > impeccible CwH base, with pp at 31.22. The breakout
| > was on very good volume, and reached a high of 34.2.
| > Because of a little overhead resistance (as mentioned
| > by others), it was expected to form a second handle
| > before breaking out to new highs. This was also noted
| > by the issue of IBD the day after its breakout. It
| > consolidated between 32 and 34 the next 5 days, with
| > nothing extraordinary shown on the daily chart. I was
| > several times tempted to add shares when it pulled to
| > low 32's but thougt better of it. My plan was to add
| > to my position when it broke out of the second handle.
| > I wasn't even thinking about selling it before I
| > looked at the intraday chart.
| >
| > I was alarmed by the intraday chart. On the intraday
| > chart, the consolidation between 32 and 34 showed up
| > as a five day CwH formation, with the appropriate
| > volume actions (large volume on left and right sides,
| > dryups on bottom and in handle). Handle high was 33.76
| > which was the intraday high on Thursday. Everything
| > was great except for the last hour or so of Thursday.
| > Some heavy selling came in and broke the handle
| > formation (little did I know that the Off Wall Street
| > report was issued to its clients on that Thursday).
| > WON told us that heavy selling in handle was a sign of
| > trouble, and a good short can be entered when the
| > handle low was broken as the volume picked up. Of
| > course he was refering to daily charts. Intraday
| > charts work the same way except its validity is much
| > shorter in duration. If the market were healthy, I
| > probably would have expected CSTR to pullback and test
| > the pp and a decision could be made after the test.
| > But with the other leading stocks weakening, there was
| > no question at that point that CSTR was going to break
| > below its pivot point. So I decided to sell it the
| > next morning along with the others for a small profit.
| >
| > I was kicking myself a few days later when CSTR barely
| > dipped below the pp and then rallied past my sell
| > price. But that lasted only one day. Thank goodness
| > the intraday chart gave me the only clue there was.
| >
| > As far as CVH was concerned, I ruled it out as a buy
| > candidate early on. There were several issues with
| > CVH. First was the lack of confirming strength in the
| > group - although the group ranking was high, other
| > stocks in the group either didn't have a proper base
| > (SIE), or had a wide and loose base (MME). I avoid
| > groups like this. Second CVH was overowned by
| > institutions - over 90% of ownership. WON's rule was
| > less than 50% institutional ownership. Third was a
| > non-CANSLIM issue: CVH was being investigated for
| > overcharging government. Although it was an old issue,
| > as long as it remained unresolved, there could always
| > be surprises.
| >
| > One final note. I don't think taking a 7% loss on
| > every losing trade is ok. If one takes a 7% loss in a
| > string of 5 trades (a finite probability), that's a
| > third of capital lost - too much for any trading
| > method, considering how hard it is to have a 50%
| > return (the amount needed to come back). My
| > understanding of it is that WON didn't intend 7% to be
| > where you place the stop order. Instead it's the
| > maximum allowable loss for a single trade. Usually it
| > should take a screwup to have a 7% loss. If one buys a
| > stock correctly, a 2-3% loss is achievable if the
| > stock fails. Sometimes one can even exit with a small
| > profit if the chart is read correctly.
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<DIV>Hi Dave,</DIV>
<DIV> </DIV>
<DIV>Ah...and therein lies the rub..... WON talks about institutions =
"handing=20
off stock at the top"... I think that's what the I-Watch chart =
demonstrates. See=20
the price action on the stock leading into 8/26? During that time, there =
was a=20
lot of institutional sell interest. On the gap down day and for a few =
days=20
after, the institutions were sending out buy interest messages. If =
nobody were=20
buying, the price would've dropped like a stone and never recovered. No =
way to=20
tell *who* the sellers and buyers were, but shares were certainly =
changing=20
hands.</DIV>
<DIV> </DIV>
<DIV>Just as a "disclaimer" of sorts, the I-Watch site only shows buy =
and sell=20
interest messages, so it's not going to be a completely accurate picture =
of the=20
activity. It's good enough to give clues, however and so I find it=20
useful. Here's the link that gives a full explanation of the=20
indicators and how to use them: <A=20
href=3D"http://iw.thomsonfn.com/iwatch/help/iw_advantages.htm">http://iw.=
thomsonfn.com/iwatch/help/iw_advantages.htm</A></DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dcamelot.homes@charter.net=20
href=3D"mailto:camelot.homes@charter.net">david frank</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Friday, September 06, =
2002 6:12=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] CSTR CVH =
Failed=20
breakouts Post Analysis</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>Katherine, I am confused about this =
CSTR Thomson=20
graph. It shows heavy institutional selling on 8/26/02. which was an =
nice low=20
volume up day, and heavy institutional buying on 8/27/02, =
which was=20
that heavy volume, gapped down day, losing up to 20%+. Are these =
graphs really=20
helpful or am I missing it all. Thank you, dave</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine=20
Malm</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Thursday, September 05, =
2002 9:27=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] CSTR =
CVH Failed=20
breakouts Post Analysis</DIV>
<DIV><BR></DIV>
<DIV>Hi Sol,</DIV>
<DIV> </DIV>
<DIV>The I-Watch site is just a way of looking at institutional v. =
retail=20
buying and a summary of institutional buying vs. selling "interest." =
There's=20
really no direct correlation between what you see here and the =
actual volume=20
on the stock, but it does give a clue as to which direction the=20
institutional buyers are leaning. I've attached a quick mark up of =
the=20
monthly summary so you can see what I was looking at on the chart. =
</DIV>
<DIV> </DIV>
<DIV><A=20
=
href=3D"http://WallStreet-LLC.com/canslim/CSTRIWatch090402.jpg">http://Wa=
llStreet-LLC.com/canslim/CSTRIWatch090402.jpg</A></DIV>
<DIV> </DIV>
<DIV>The Institutional interest at 2:1 is actually a *good* thing if =
the=20
interest is primarily buying interest. I only get nervous if most of =
the=20
activity is institutional selling interest and/or most of the =
activity=20
pushing the price up is retail.</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<BLOCKQUOTE=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- =
</DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dsmaye1211@yahoo.com =
href=3D"mailto:smaye1211@yahoo.com">Sol=20
Mayer</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Thursday, September =
05, 2002=20
9:01 AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] CSTR =
CVH=20
Failed breakouts Post Analysis</DIV>
<DIV><BR></DIV>
<P>Katherine=20
<P>Firstly, thank you for your informative links almost everyone =
goes into=20
my "favorites"=20
<P>Concrerning the failed b/o of CSTR from 8/16 until the =
stk broke=20
down all the action was on low volume so I'd think even though the =
institutional vol. was 3:1 on 8/22 I probably wouldn't have =
thought it to=20
be distribution I would have thought it was just =
consolidation of=20
b/o on low vol. . Also, the monthly institutional 2:1 =
volume I=20
would have attributed to buying the b/o Obviously I missed =
something=20
can you clarify.=20
<P>Thanks=20
<P> <B><I>Katherine Malm <KMALM@EARTHLINK.NET></I></B>wrote:=20
<BLOCKQUOTE=20
style=3D"PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #1010ff =
2px solid">Hi=20
James,<BR><BR>I'll add to John's "thanks for a great post" as =
it's info=20
like this that<BR>helps bring out the more subtle clues when =
making=20
buy/sell decisions. I've<BR>only recently gotten into the habit =
of=20
looking at hourly charts, as DGO<BR>didn't have this feature in =
the=20
older version. Your post is a great insight<BR>as to how this =
can be=20
helpful as a sanity check on price/volume action.<BR><BR>Here's =
a=20
resource I use regularly which also helps pick up on the =
more<BR>subtle=20
aspects of buying/selling in the=20
market:<BR><BR>http://makeashorterlink.com/?J1B8643B1 (Thomspon =
I-Watch,=20
view 8/22)<BR><BR><BR>This shows the trend in institutional vs. =
retail=20
buying/selling over a<BR>period of time. The link above is for =
the view=20
on 8/22, where it's clear<BR>there's heavy sell interest by=20
institutions. (that day, about 3:1<BR>Institutions:Retail =
activity, and=20
2:1 for the month to that point.) Click to<BR>a monthly view and =
the=20
heavy sell interest shows up leading into the=20
gap<BR>down.<BR><BR>http://makeashorterlink.com/?N6C8523B1 (view =
to=20
date, 1 month)<BR><BR>Katherine<BR><BR>----- Original Message=20
-----<BR>From: "John Calkins" <JCALKINS@OLYPEN.COM><BR>To:=20
<CANSLIM@LISTS.XMISSION.COM><BR>Sent: Thursday, September 05, =
2002 7:16=20
AM<BR>Subject: Re: [CANSLIM] CSTR CVH Failed breakouts Post=20
Analysis<BR><BR><BR>| Hi James,<BR>|<BR>| Thanks for your =
incredible=20
responce to my Failed Breakout and Stops! I've<BR>| tried to =
look at the=20
intraday charts before but didn't take them seriously<BR>| =
enough I=20
guess. I have noted before that big moves on high volume =
during<BR>| the=20
day seemed to be connected to some news or something, but was=20
afraid<BR>it<BR>| was just market makers or day trading. I can't =
get=20
more than 10 days ago<BR>at<BR>| BigCharts for a history on CSTR =
for the=20
time frame but I think I<BR>understand<BR>| that when you see a =
CWH=20
pattern within a 5 day then watch for a handle to<BR>| form or =
breakdown=20
or up in price with high volume. Do you look =
at<BR>BigCharts<BR>| for=20
this intraday charting and what is you setting preference, such =
as=20
5<BR>or<BR>| 10 day/ 1 hour or 15 min.? I had been getting my=20
volume/price information<BR>| each day from my telephone service =
with TD=20
Waterhouse but it looks like<BR>your<BR>| intra-day charts work =
much=20
better.<BR>|<BR>|<BR>|<BR>|<BR>|<BR>|<BR>| ---- Original Message =
-----<BR>| From: "James Bond" <JAMES_BOND_3RD@YAHOO.COM><BR>| =
To:=20
<CANSLIM@LISTS.XMISSION.COM><BR>| Sent: Tuesday, September 03, =
2002 6:44=20
PM<BR>| Subject: Re: [CANSLIM] CSTR CVH Failed breakouts Post=20
Analysis<BR>|<BR>|<BR>| > CSTR presents an interesting =
example of the=20
importance<BR>| > of intraday charts. There is no clue of=20
impending<BR>| > trouble on the daily chart until the stock =
broke=20
down.<BR>| > The intraday chart, however, telegraphed the bad =
news<BR>| > well in advance.<BR>| ><BR>| > Like many =
other=20
people, I too cannot follow the market<BR>| > during the day =
and have=20
to check charts during the<BR>| > evening. When I have a =
position=20
open, I check the<BR>| > chart every night with no =
exception.<BR>|=20
><BR>| > On Thursday, Aug 22, when this rally was =
still<BR>| >=20
advancing, I was surprised that evening to see many<BR>| > =
bearish=20
charts among the leading stocks. For example,<BR>| > FCN had =
a=20
deterioting relative strength, CCR made a<BR>| > new high but =
its=20
relative strength lagged, DORL gapped<BR>| > to a new high =
but saw no=20
progress in daily price<BR>| > (distribution), and PIXR had =
formed an=20
evening star<BR>| > candlestick pattern. If one or two stocks =
were=20
acting<BR>| > poorly it probably wouldn't have bothered me so =
much.<BR>| > When most of the leading stocks were showing =
signs=20
of<BR>| > weakness the market was in trouble. At that time I =
was<BR>|=20
> long CCR, CSTR, DORL, NUTR, and PIXR. My first<BR>| > =
decision=20
was to sell CCR, DORL and PIXR at the open<BR>| > next =
morning, and=20
but to keep CSTR and NUTR.<BR>| ><BR>| > I changed my mind =
when I=20
looked at the intraday chart<BR>| > for CSTR. On the daily =
chart,=20
CSTR had formed an<BR>| > impeccible CwH base, with pp at =
31.22. The=20
breakout<BR>| > was on very good volume, and reached a high =
of=20
34.2.<BR>| > Because of a little overhead resistance (as=20
mentioned<BR>| > by others), it was expected to form a second =
handle<BR>| > before breaking out to new highs. This was also =
noted<BR>| > by the issue of IBD the day after its breakout. =
It<BR>|=20
> consolidated between 32 and 34 the next 5 days, with<BR>| =
>=20
nothing extraordinary shown on the daily chart. I was<BR>| > =
several=20
times tempted to add shares when it pulled to<BR>| > low 32's =
but=20
thougt better of it. My plan was to add<BR>| > to my position =
when it=20
broke out of the second handle.<BR>| > I wasn't even thinking =
about=20
selling it before I<BR>| > looked at the intraday chart.<BR>| =
><BR>| > I was alarmed by the intraday chart. On the =
intraday<BR>|=20
> chart, the consolidation between 32 and 34 showed up<BR>| =
> as a=20
five day CwH formation, with the appropriate<BR>| > volume =
actions=20
(large volume on left and right sides,<BR>| > dryups on =
bottom and in=20
handle). Handle high was 33.76<BR>| > which was the intraday =
high on=20
Thursday. Everything<BR>| > was great except for the last =
hour or so=20
of Thursday.<BR>| > Some heavy selling came in and broke the=20
handle<BR>| > formation (little did I know that the Off Wall=20
Street<BR>| > report was issued to its clients on that=20
Thursday).<BR>| > WON told us that heavy selling in handle =
was a sign=20
of<BR>| > trouble, and a good short can be entered when =
the<BR>| >=20
handle low was broken as the volume picked up. Of<BR>| > =
course he=20
was refering to daily charts. Intraday<BR>| > charts work the =
same=20
way except its validity is much<BR>| > shorter in duration. =
If the=20
market were healthy, I<BR>| > probably would have expected =
CSTR to=20
pullback and test<BR>| > the pp and a decision could be made =
after=20
the test.<BR>| > But with the other leading stocks weakening, =
there=20
was<BR>| > no question at that point that CSTR was going to=20
break<BR>| > below its pivot point. So I decided to sell it =
the<BR>|=20
> next morning along with the others for a small profit.<BR>| =
><BR>| > I was kicking myself a few days later when CSTR=20
barely<BR>| > dipped below the pp and then rallied past my =
sell<BR>|=20
> price. But that lasted only one day. Thank goodness<BR>| =
> the=20
intraday chart gave me the only clue there was.<BR>| ><BR>| =
> As=20
far as CVH was concerned, I ruled it out as a buy<BR>| > =
candidate=20
early on. There were several issues with<BR>| > CVH. First =
was the=20
lack of confirming strength in the<BR>| > group - although =
the group=20
ranking was high, other<BR>| > stocks in the group either =
didn't have=20
a proper base<BR>| > (SIE), or had a wide and loose base =
(MME). I=20
avoid<BR>| > groups like this. Second CVH was overowned =
by<BR>| >=20
institutions - over 90% of ownership. WON's rule was<BR>| > =
less than=20
50% institutional ownership. Third was a<BR>| > non-CANSLIM =
issue:=20
CVH was being investigated for<BR>| > overcharging =
government.=20
Although it was an old issue,<BR>| > as long as it remained=20
unresolved, there could always<BR>| > be surprises.<BR>| =
><BR>|=20
> One final note. I don't think taking a 7% loss on<BR>| > =
every=20
losing trade is ok. If one takes a 7% loss in a<BR>| > string =
of 5=20
trades (a finite probability), that's a<BR>| > third of =
capital lost=20
- too much for any trading<BR>| > method, considering how =
hard it is=20
to have a 50%<BR>| > return (the amount needed to come back). =
My<BR>|=20
> understanding of it is that WON didn't intend 7% to be<BR>| =
>=20
where you place the stop order. Instead it's the<BR>| > =
maximum=20
allowable loss for a single trade. Usually it<BR>| > should =
take a=20
screwup to have a 7% loss. If one buys a<BR>| > stock =
correctly, a=20
2-3% loss is achievable if the<BR>| > stock fails. Sometimes =
one can=20
even exit with a small<BR>| > profit if the chart is read=20
=
correctly.<BR></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BODY>=
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