Go to Jeff Salisbury LWGate Home Page.From: =?iso-8859-1?Q?S=E9bastien_Derks?= <sderks@gmx.net>
Subject: RE: [CANSLIM] STOPs
Date: Wed, 21 May 2003 20:13:57 +0200
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Chuck,
=20
=20
A trailing stop works like this:
=20
If you put a stop at $9.50 (5% below $10.00) when having it stock bought
at $10.00 then if the stock goes up to $11 then the stop will change to
$10.45 (5% below $11). It basically stays the same percentage under the
new high reached. In case the stock drops then to $10.45 the stop order
will be executed because it only moves up when a new high is reached
from the point that you bought it for.
=20
=20
S=E9bastien
=20
=20
- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of Chuck Dreier
Sent: woensdag 21 mei 2003 20:05
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] STOPs
=20
Please explain "trailing stop". How is that different than the stop
loss that I'm familiar with? Thanks....
Chuck
=20
- ----- Original Message -----=20
From: jeffwdc <mailto:jeffwdc@yahoo.com> =20
To: canslim@lists.xmission.com=20
Sent: Wednesday, May 21, 2003 1:24 PM
Subject: Re: [CANSLIM] STOPs
=20
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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<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
lang=3DEN-GB
style=3D'font-size:10.0pt;font-family:Arial;color:navy;mso-ansi-language:=
EN-GB'>Chuck,<o:p></o:p></span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
lang=3DEN-GB
style=3D'font-size:10.0pt;font-family:Arial;color:navy;mso-ansi-language:=
EN-GB'><o:p> </o:p></span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
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style=3D'font-size:10.0pt;font-family:Arial;color:navy;mso-ansi-language:=
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<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
lang=3DEN-GB
style=3D'font-size:10.0pt;font-family:Arial;color:navy;mso-ansi-language:=
EN-GB'>A
trailing stop works like this:<o:p></o:p></span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
lang=3DEN-GB
style=3D'font-size:10.0pt;font-family:Arial;color:navy;mso-ansi-language:=
EN-GB'><o:p> </o:p></span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
lang=3DEN-GB
style=3D'font-size:10.0pt;font-family:Arial;color:navy;mso-ansi-language:=
EN-GB'>If
you put a stop at $9.50 (5% below $10.00) when having it stock bought at =
$10.00
then if the stock goes up to $11 then the stop will change to $10.45 (5% =
below
$11). It basically stays the same percentage under the new high reached. =
In
case the stock drops then to $10.45 the stop order will be executed =
because it
only moves up when a new high is reached from the point that you bought =
it for.<o:p></o:p></span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
lang=3DEN-GB
style=3D'font-size:10.0pt;font-family:Arial;color:navy;mso-ansi-language:=
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lang=3DEN-GB
style=3D'font-size:10.0pt;font-family:Arial;color:navy;mso-ansi-language:=
EN-GB'>S=E9bastien<o:p></o:p></span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
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style=3D'font-size:10.0pt;font-family:Arial;color:navy;mso-ansi-language:=
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EN-GB'><o:p> </o:p></span></font></p>
<p class=3DMsoNormal style=3D'margin-left:35.4pt'><font size=3D2 =
face=3DTahoma><span
lang=3DEN-US =
style=3D'font-size:10.0pt;font-family:Tahoma;mso-ansi-language:EN-US'>---=
- --Original
Message-----<br>
<b><span style=3D'font-weight:bold'>From:</span></b>
owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com] <b><span
style=3D'font-weight:bold'>On Behalf Of </span></b>Chuck Dreier<br>
<b><span style=3D'font-weight:bold'>Sent:</span></b> woensdag 21 mei =
2003 </span></font><st1:time
Hour=3D"20" Minute=3D"5"><font size=3D2 face=3DTahoma><span lang=3DEN-US
=
style=3D'font-size:10.0pt;font-family:Tahoma;mso-ansi-language:EN-US'>20:=
05</span></font></st1:time><font
size=3D2 face=3DTahoma><span lang=3DEN-US =
style=3D'font-size:10.0pt;font-family:Tahoma;
mso-ansi-language:EN-US'><br>
<b><span style=3D'font-weight:bold'>To:</span></b> =
canslim@lists.xmission.com<br>
<b><span style=3D'font-weight:bold'>Subject:</span></b> Re: [CANSLIM] =
STOPs</span></font></p>
<p class=3DMsoNormal style=3D'margin-left:35.4pt'><font size=3D3
face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt'><o:p> </o:p></span></font></p>
<div>
<p class=3DMsoNormal style=3D'margin-left:35.4pt'><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>Please explain =
"trailing
stop". How is that different than the stop loss that I'm
familiar with? Thanks....</span></font><o:p></o:p></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:35.4pt'><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>Chuck</span></font><o:p></o:=
p></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:35.4pt'><font size=3D3
face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt'> <o:p></o:p></span></font></p>
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<blockquote style=3D'border:none;border-left:solid black =
1.5pt;padding:0cm 0cm 0cm 4.0pt;
margin-left:3.75pt;margin-top:5.0pt;margin-right:0cm;margin-bottom:5.0pt'=
>
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<p class=3DMsoNormal style=3D'margin-left:35.4pt'><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>----- Original Message =
- ----- <o:p></o:p></span></font></p>
</div>
<div style=3D'font-color:black'>
<p class=3DMsoNormal =
style=3D'margin-left:35.4pt;background:#E4E4E4'><b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;font-weight:
bold'>From:</span></font></b><font size=3D2 face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial'> <a href=3D"mailto:jeffwdc@yahoo.com"
title=3D"jeffwdc@yahoo.com">jeffwdc</a> <o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:35.4pt'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>To:</span><=
/font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> <a
href=3D"mailto:canslim@lists.xmission.com" =
title=3D"canslim@lists.xmission.com">canslim@lists.xmission.com</a>
<o:p></o:p></span></font></p>
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<div>
<p class=3DMsoNormal style=3D'margin-left:35.4pt'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>Sent:</span=
></font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> Wednesday,
May 21, 2003 1:24 PM<o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:35.4pt'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>Subject:</s=
pan></font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> Re:
[CANSLIM] STOPs<o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:35.4pt'><font size=3D3
face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt'><o:p> </o:p></span></font></p>
</div>
<p class=3DMsoNormal style=3D'margin-left:35.4pt'><font size=3D3
face=3D"Times New Roman"><span style=3D'font-size:12.0pt'>Rolf,<br>
<br>
I asked a similar question a couple of months ago. <br>
Tom Worely posted a reply, but I regret I can't find<br>
his actual message -however I did print a hard copy. <br>
On 3/20/03 Tom 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 15%. At that point,<br>
I raise my limit to my original entry point (or<br>
aveerage price if multiple purchases). After that, I<br>
try to us a trailing stop 15% below the prior day<br>
(sometimes the closing price, sometimes the intraday<br>
high, depends on the chart, stock, fundies, how badly<br>
I want to take profits, etc.) Of course, once raised,<br>
the stop loss should NEVER be lowered.<br>
<br>
Also found this message from Tom written on 4/21/03:<br>
<br>
"I think any stop loss price should be selected after<br>
studying the chart, and considering your entry point.<br>
When I use hard stops, I like to put them just under<br>
where I see support, figuring if it goes thru short<br>
term support then it could go down a lot further.<br>
<br>
When I really don't want to be stopped out, and<br>
especially when I already have a nice profit, I tend<br>
to use looser stops."<br>
<br>
Jeff Gasta<br>
Note: I am now using a new e-mail address.<br>
<br>
- --- Rolf Hertenstein <<a =
href=3D"mailto:rolfh@mindspring.com">rolfh@mindspring.com</a>>
wrote:<br>
> Just curious how folks manage their mental or hard*<br>
> STOPs on a broken-out stock that is behaving well<br>
> (gaining steadily over a few months with a few<br>
> 10-15% corrections). I'm especially curious about<br>
> techniques people might use in this market.<br>
> <br>
> A 'standard' technique uses a trailing STOP at xx%<br>
> below the currwnt price. Another technique I have<br>
> read about sets STOPs in relation to the 50 or 200<br>
> DMA, with the hope that allowing the stock<br>
> relatively wide swings ultimately leads to big<br>
> gains, as long as the DMA is still rising.<br>
> <br>
> Any thoughts greatly appreciated.<br>
> <br>
> Rolf<br>
> <br>
<br>
<br>
__________________________________<br>
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Next Article (by Date): RE: [CANSLIM] STOPs "Tim Katona"
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