Re: [CANSLIM] STOPs

From: "Gene Ricci" <genr@swbell.net>
Subject: Re: [CANSLIM] STOPs
Date: Wed, 21 May 2003 13:10:48 -0500
Previous Article (by Date): Re: [CANSLIM] STOPs "Chuck Dreier"
Top of Thread: Re: [CANSLIM] STOPs jeffwdc
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http://www.investopedia.com/terms/t/trailingstop.asp

Gene
  ----- Original Message -----=20
  From: Chuck Dreier=20
  To: canslim@lists.xmission.com=20
  Sent: Wednesday, May 21, 2003 1:04 PM
  Subject: Re: [CANSLIM] STOPs


  Please explain "trailing stop".  How is that different than the stop =
loss that I'm familiar with?  Thanks....
  Chuck

    ----- Original Message -----=20
    From: jeffwdc=20
    To: canslim@lists.xmission.com=20
    Sent: Wednesday, May 21, 2003 1:24 PM
    Subject: Re: [CANSLIM] STOPs


    Rolf,

    I asked a similar question a couple of months ago.=20
    Tom Worely posted a reply, but I regret I can't find
    his actual message -however I did print a hard copy. =20
    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.
    >=20
    > 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.
    >=20
    > Any thoughts greatly appreciated.
    >=20
    >  Rolf
    >=20


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<DIV><FONT face=3D"Comic Sans MS"><A=20
href=3D"http://www.investopedia.com/terms/t/trailingstop.asp">http://www.=
investopedia.com/terms/t/trailingstop.asp</A></FONT></DIV>
<DIV><FONT face=3D"Comic Sans MS"></FONT>&nbsp;</DIV>
<DIV><FONT face=3D"Comic Sans MS">Gene</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=3Dchucknsc@mindspring.com =
href=3D"mailto:chucknsc@mindspring.com">Chuck=20
  Dreier</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> Wednesday, May 21, 2003 =
1:04=20
  PM</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
STOPs</DIV>
  <DIV><BR></DIV>
  <DIV><FONT face=3DArial size=3D2>Please explain "trailing stop".&nbsp; =
How is that=20
  different than&nbsp;the stop loss that I'm familiar with?&nbsp;=20
  Thanks....</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2>Chuck</FONT></DIV>
  <DIV>&nbsp;</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=3Djeffwdc@yahoo.com =
href=3D"mailto:jeffwdc@yahoo.com">jeffwdc</A>=20
</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> Wednesday, May 21, 2003 =
1:24=20
    PM</DIV>
    <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
STOPs</DIV>
    <DIV><BR></DIV>Rolf,<BR><BR>I asked a similar question a couple of =
months=20
    ago. <BR>Tom Worely posted a reply, but I regret I can't find<BR>his =
actual=20
    message -however I did print a hard copy.&nbsp; <BR>On 3/20/03 Tom=20
    wrote:<BR>...the normal procedure I use is to leave the stop<BR>loss =

    unchanged (from the 8% stop placed after<BR>purchase) until I am up =
at least=20
    15%.&nbsp; At that point,<BR>I raise my limit to my original entry =
point=20
    (or<BR>aveerage price if multiple purchases).&nbsp; After that, =
I<BR>try to=20
    us a trailing stop 15% below the prior day<BR>(sometimes the closing =
price,=20
    sometimes the intraday<BR>high, depends on the chart, stock, =
fundies, how=20
    badly<BR>I want to take profits, etc.)&nbsp; Of course, once =
raised,<BR>the=20
    stop loss should NEVER be lowered.<BR><BR>Also found this message =
from Tom=20
    written on 4/21/03:<BR><BR>"I think any stop loss price should be =
selected=20
    after<BR>studying the chart, and considering your entry =
point.<BR>When I use=20
    hard stops, I like to put them just under<BR>where I see support, =
figuring=20
    if it goes thru short<BR>term support then it could go down a lot=20
    further.<BR><BR>When I really don't want to be stopped out,=20
    and<BR>especially when I already have a nice profit, I tend<BR>to =
use looser=20
    stops."<BR><BR>Jeff Gasta<BR>Note: I am now using a new e-mail=20
    address.<BR><BR>--- Rolf Hertenstein &lt;<A=20
    href=3D"mailto:rolfh@mindspring.com">rolfh@mindspring.com</A>&gt;=20
    wrote:<BR>&gt; Just curious how folks manage their mental or =
hard*<BR>&gt;=20
    STOPs on a broken-out stock that is behaving well<BR>&gt; (gaining =
steadily=20
    over a few months with a few<BR>&gt; 10-15% corrections).&nbsp; I'm=20
    especially curious about<BR>&gt; techniques people might use in this =

    market.<BR>&gt; <BR>&gt; A 'standard' technique uses a trailing STOP =
at=20
    xx%<BR>&gt; below the currwnt price.&nbsp; Another technique I =
have<BR>&gt;=20
    read about sets STOPs in relation to the 50 or 200<BR>&gt; DMA, with =
the=20
    hope that allowing the stock<BR>&gt; relatively wide swings =
ultimately leads=20
    to big<BR>&gt; gains, as long as the DMA is still rising.<BR>&gt; =
<BR>&gt;=20
    Any thoughts greatly appreciated.<BR>&gt; <BR>&gt;&nbsp; =
Rolf<BR>&gt;=20
    <BR><BR><BR>__________________________________<BR>Do you =
Yahoo!?<BR>The New=20
    Yahoo! Search - Faster. Easier. Bingo.<BR><A=20
    =
href=3D"http://search.yahoo.com">http://search.yahoo.com</A><BR><BR>-<BR>=
- -To=20
    subscribe/unsubscribe, email "<A=20
    =
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In=
 the=20
    email body, write "subscribe canslim" or<BR>-"unsubscribe =
canslim".&nbsp; Do=20
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email.<BR></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>

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Previous Article (by Date): Re: [CANSLIM] STOPs "Chuck Dreier"
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