Go to Jeff Salisbury LWGate Home Page.From: Sol Mayer <smaye1211@yahoo.com>
Subject: Re: [CANSLIM] selling rules question
Date: Wed, 6 Nov 2002 08:06:13 -0800 (PST)
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- --0-100372118-1036598773=:17939 Content-Type: text/plain; charset=us-ascii what's Murphy's Law Everytime I take my 20% gain i.e FDP RYL etc it goes on to be 100% winner and whenever I try to hold on to get the big winner I usually end up breaking even or losing a little. GO FIGURE! Tom Worley <stkguru@bellsouth.net> wrote:Mike, I like to start with the standard max of an 8% stop loss set from my entry point, so long as that also puts it just under the bottom of the base line. Once I am up at least 15%, I prefer to then raise my stop loss to a break even, then if things keep moving up, also move the stop loss to a trailing 15%. Granted, I tend to usually do this in my head, and usually works better when I use hard stops. I rarely sell part of the position for only a 20% gain. I invest for long term, and rarely without an expectation / goal of at least 100% gain. If I feel compelled to sell for only a 20% gain, then normally I sell the entire position. That also keeps the cost of commission from becoming a measurable factor for me. - ----- Original Message ----- From: To: Sent: Monday, November 04, 2002 12:59 PM Subject: [CANSLIM] selling rules question All, I know I have asked similar questions in the past, but not sure if I have addressed this one: If you have bought a stock, and watched it rise , say 15-20%, and being conservative, you have sold 1/2 your position to lock in those profits, for the other half, do you use a trailing stop (mental or real) to lock in a minimum profit on the rest, say 5%, or do you allow it to drop as low as the 7-8% below your original buy point, or maybe just to a break even point? The reason I ask is the somewhat confusing statement that WON makes in his book about never letting a gain turn into a loss. But how much of a gain do you have to get before you move up the stop loss from 7-8% below buy point to a break even point, without unnecessarily getting pushed out of a otherwise good stock that might just be undergoing a normal correction? Also, assuming that you capital is small, such that the commission fees are not negligible, do you include the costs of the trades in calculating the sell prices? 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 - - - -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. - --------------------------------- Do you Yahoo!? HotJobs - Search new jobs daily now - --0-100372118-1036598773=:17939 Content-Type: text/html; charset=us-ascii <P>what's Murphy's Law Everytime I take my 20% gain i.e FDP RYL etc it goes on to be 100% winner and whenever I try to hold on to get the big winner I usually end up breaking even or losing a little. GO FIGURE! <P> <B><I>Tom Worley <stkguru@bellsouth.net></I></B> wrote: <BLOCKQUOTE style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #1010ff 2px solid">Mike, I like to start with the standard max of an 8% stop loss set from my<BR>entry point, so long as that also puts it just under the bottom of the base<BR>line. Once I am up at least 15%, I prefer to then raise my stop loss to a<BR>break even, then if things keep moving up, also move the stop loss to a<BR>trailing 15%. Granted, I tend to usually do this in my head, and usually<BR>works better when I use hard stops.<BR><BR>I rarely sell part of the position for only a 20% gain. I invest for long<BR>term, and rarely without an expectation / goal of at least 100% gain. If I<BR>feel compelled to sell for only a 20% gain, then normally I sell the entire<BR>position. That also keeps the cost of commission from becoming a measurable<BR>factor for me.<BR><BR>----- Original Message -----<BR>From: <MICHAEL_NIEMOTKA@BAXTER.COM><BR>To: <CANSLIM@LISTS.XMISSION.COM><BR>Sent: Monday, November 04, 2002 12:59 PM<BR>Subject: [CANSLIM] selling rules question<BR><BR><BR>All,<BR><BR>I know I have asked similar questions in the past, but not sure if I have<BR>addressed this one:<BR><BR>If you have bought a stock, and watched it rise , say 15-20%, and being<BR>conservative, you have sold 1/2 your position to lock in those profits, for<BR>the other half, do you use a trailing stop (mental or real) to lock in a<BR>minimum profit on the rest, say 5%, or do you allow it to drop as low as<BR>the 7-8% below your original buy point, or maybe just to a break even<BR>point?<BR><BR>The reason I ask is the somewhat confusing statement that WON makes in his<BR>book about never letting a gain turn into a loss. But how much of a gain do<BR>you have to get before you move up the stop loss from 7-8% below buy point<BR>to a break even point, without unnecessarily getting pushed out of a<BR>otherwise good stock that might just be undergoing a normal correction?<BR><BR>Also, assuming that you capital is small, such that the commission fees are<BR>not negligible, do you include the costs of the trades in calculating the<BR>sell prices?<BR><BR>Thanks<BR><BR>Mike<BR><BR>Mike Niemotka , PE<BR>Sr. Principal Engineer<BR>Baxter Healthcare Corporation<BR>Route 120 & Wilson Road<BR>Round Lake, IL 60073<BR>Tel (847) 270-4075<BR>Fax (847) 270-4525<BR>michael_niemotka@baxter.com<BR><BR><BR><BR>-<BR>-To subscribe/unsubscribe, email "majordomo@xmission.com"<BR>-In the email body, write "subscribe canslim" or<BR>-"unsubscribe canslim". Do not use quotes in your email.<BR><BR><BR><BR>-<BR>-To subscribe/unsubscribe, email "majordomo@xmission.com"<BR>-In the email body, write "subscribe canslim" or<BR>-"unsubscribe canslim". Do not use quotes in your email.</BLOCKQUOTE><p><br><hr size=1>Do you Yahoo!?<br> <a href="http://rd.yahoo.com/careers/mailsig/*http://www.hotjobs.com ">HotJobs</a> - Search new jobs daily now - --0-100372118-1036598773=:17939-- - - - -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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