Re: [CANSLIM] STOPs

From: jeffwdc <jeffwdc@yahoo.com>
Subject: Re: [CANSLIM] STOPs
Date: Wed, 21 May 2003 10:24:59 -0700 (PDT)

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Rolf,

I asked a similar question a couple of months ago. 
Tom Worely posted a reply, but I regret I can't find
his actual message -however I did print a hard copy.  
On 3/20/03 Tom wrote:
...the normal procedure I use is to leave the stop
loss unchanged (from the 8% stop placed after
purchase) until I am up at least 15%.  At that point,
I raise my limit to my original entry point (or
aveerage price if multiple purchases).  After that, I
try to us a trailing stop 15% below the prior day
(sometimes the closing price, sometimes the intraday
high, depends on the chart, stock, fundies, how badly
I want to take profits, etc.)  Of course, once raised,
the stop loss should NEVER be lowered.

Also found this message from Tom written on 4/21/03:

"I think any stop loss price should be selected after
studying the chart, and considering your entry point.
When I use hard stops, I like to put them just under
where I see support, figuring if it goes thru short
term support then it could go down a lot further.

When I really don't want to be stopped out, and
especially when I already have a nice profit, I tend
to use looser stops."

Jeff Gasta
Note: I am now using a new e-mail address.

- --- Rolf Hertenstein <rolfh@mindspring.com> wrote:
> Just curious how folks manage their mental or hard*
> STOPs on a broken-out stock that is behaving well
> (gaining steadily over a few months with a few
> 10-15% corrections).  I'm especially curious about
> techniques people might use in this market.
> 
> A 'standard' technique uses a trailing STOP at xx%
> below the currwnt price.  Another technique I have
> read about sets STOPs in relation to the 50 or 200
> DMA, with the hope that allowing the stock
> relatively wide swings ultimately leads to big
> gains, as long as the DMA is still rising.
> 
> Any thoughts greatly appreciated.
> 
>  Rolf
> 

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