[CANSLIM] Question about 5% rule

From: "rchodes" <rchodes@charter.net>
Subject: [CANSLIM] Question about 5% rule
Date: Mon, 5 May 2003 20:00:34 -0700

Next Article (by Date): RE: [CANSLIM] How much support is the 50 DMA? (JOSB) "Katherine Malm"
Previous Article (by Date): [CANSLIM] leader vs laggard Roger Tawa
Articles sorted by: [Date] [Author] [Subject]

This is a multi-part message in MIME format.

- ------=_NextPart_000_004B_01C31340.FD343E40
Content-Type: text/plain;
	charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable

I have a question about the rule not to buy a stock that has moved up in =
price more than 5% above the pivot point.  This rule is easy to follow =
if the stock price is above $15.  I know that some of you, such as Tom, =
follow small caps that may have a price below $10, perhaps in the $5 =
range.  Well 5% of $5 is .25 and it's pretty hard to jump onto that =
sucker before it goes up .25 from the pivot point.

One can always cheat and buy before the anticipated breakout.  Or you =
can expand the 5% rule to maybe 15% or so.  To those of you who troll in =
these waters, what do you?  Thanks.

Bob Hodes

- ------=_NextPart_000_004B_01C31340.FD343E40
Content-Type: text/html;
	charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable

<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=3DContent-Type content=3D"text/html; =
charset=3Diso-8859-1">
<META content=3D"MSHTML 6.00.2722.900" name=3DGENERATOR>
<STYLE></STYLE>
</HEAD>
<BODY bgColor=3D#ffffff>
<DIV><FONT face=3DArial size=3D2>I have a question about the rule not to =
buy a stock=20
that has moved up in price more than 5% above the pivot point.&nbsp; =
This rule=20
is easy to follow if the stock price is above $15.&nbsp; I know that =
some of=20
you, such as Tom, follow small caps that may have a price below $10, =
perhaps in=20
the $5 range.&nbsp; Well 5% of $5 is .25 and it's pretty hard to jump =
onto that=20
sucker before it goes up .25 from the pivot point.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>One can always cheat and buy before the =
anticipated=20
breakout.&nbsp; Or you can expand the 5% rule to maybe 15% or so.&nbsp; =
To those=20
of you who troll in these waters, what do you?&nbsp; =
Thanks.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Bob Hodes</FONT></DIV></BODY></HTML>

- ------=_NextPart_000_004B_01C31340.FD343E40--



- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim".  Do not use quotes in your email.

Go to Jeff Salisbury LWGate Home Page.