Go to Jeff Salisbury LWGate Home Page.From: michael_niemotka@baxter.com
Subject: RE: [CANSLIM] STOPs and GRMN and selling rules
Date: Wed, 21 May 2003 14:42:33 -0500
Next Article (by Subject): RE: [CANSLIM] STOPs michael_niemotka@baxter.com
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While we are still on the subject of trailing stops, it can sometimes
backfire.
At one point, I was up over 20% in GRMN, after only a three week time from
purchase.
I chose to put in a 15% trailing stop, ie at worst case I would make a 5%
profit if the stop started to fall. I know some would sell at least a
portion of the position at a 20% gain, but because it came so quickly, I
remembered one of WON's rules that said that you should hold a stock like
that for at least 8 weeks. He also said that you should NEVER let a stock
that is up 15-20% turn into a loss, so that is why I used a 15% trailer.
And then today, I get the e-mail notice that my stop loss has been
activated, and then I watch GRMN go on to have a 10% swing during the day,
which would leave me at about a 15% gain again.
Overall, I still think GRMN is a great company , and am mad that I got
booted out with the stop loss, but I think this is something that everyone
has to deal with if you plan on being un-emotional, and using rules.
So what would everyone else have done? Should I have had a break even stop
loss instead, since I was only up 20% but it happened within the first 3
weeks?
Also, what is everyone's interpretation of WON's hold for 8 weeks rule when
you get a high flyer? Do you limit the loss to break even instead, to give
it more leeway for a pullback?
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
"Martin Guldenburg"
<martinguldenburg@hotm To: canslim@lists.xmission.com
ail.com> cc:
Sent by: Subject: RE: [CANSLIM] STOPs
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05/21/2003 02:27 PM
Please respond to
canslim
Ameritrade offers Trailing Stops
- -Martin
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