Re: [CANSLIM] buying after a missed breakout

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] buying after a missed breakout
Date: Tue, 25 Mar 2003 16:27:33 -0500

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Hi Michael,

The key is that you must be able to look at the stock as if you never heard
of it before. If you can't get that "missed pivot / breakout" out of your
head, then you are better off never looking at it again, as it will corrupt
your thinking. If you can overcome this, then certainly it may present
future valid pivot points and entry prices, even tho higher than that lost
opportunity.

The best stocks will go on for gains of 100% or more, so missing out on the
first 30% or wherever it again forms a valid CANSLIM basing pattern only
means that you missed a small part of the ride.

- ----- Original Message -----
From: <michael_niemotka@baxter.com>
To: <canslim@lists.xmission.com>
Sent: Tuesday, March 25, 2003 3:20 PM
Subject: [CANSLIM] buying after a missed breakout


In the last few days, we have seen a number of stocks breaking out of good
bases. Only time will tell if they hold, but I was wondering what people's
thoughts were in regards to buying the stocks later, if they missed the
breakout.

We all know that WON says not to chase a stock anymore than 5% above the
pivot point, but assuming that a stock that you missed is going to be a 30%
or greater winner, are there other valid entry points?  I am not talking
about getting in if the stock pulls back to the pivot soon after the
breakout on light volume, which I know is a possible second chance, I am
more interested in if people have entry points after a stock has gained
over 5%, and does not drop any lower than that.

Is it an all or nothing game on the breakouts, ie if you don't grab one
within 5% of the pivot, then you eliminate it from your watchlist. or do
you wait for temporary consolidation after it has gained 10% or more, in
hopes that it continues to power up?

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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