RE: [CANSLIM] STOPs


From: "Richard Herkert" <herkert@bigplanet.com>
Subject: RE: [CANSLIM] STOPs
Date: Wed, 21 May 2003 13:01:31 -0700

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Chuck - Ameritrade offers GTC or Day trailing stops.
- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of Chuck Dreier
Sent: Wednesday, May 21, 2003 11:49 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] STOPs


Thanks everyone!  I don't use a deep discount broker (I use Schwab)  and
they don't have trailing stops as an option.  'Wish they did.....
Chuck
- ----- Original Message -----=20
From: S=E9bastien Derks <mailto:sderks@gmx.net> =20
To: canslim@lists.xmission.com=20
Sent: Wednesday, May 21, 2003 2:13 PM
Subject: RE: [CANSLIM] STOPs

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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<DIV><SPAN class=3D710420020-21052003><FONT face=3DArial color=3D#0000ff =
size=3D2>Chuck=20
- - Ameritrade offers GTC or Day trailing stops.</FONT></SPAN></DIV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
  <DIV></DIV>
  <DIV class=3DOutlookMessageHeader lang=3Den-us dir=3Dltr =
align=3Dleft><FONT=20
  face=3DTahoma size=3D2>-----Original Message-----<BR><B>From:</B>=20
  owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com]=20
  <B>On Behalf Of </B>Chuck Dreier<BR><B>Sent:</B> Wednesday, May 21, =
2003 11:49=20
  AM<BR><B>To:</B> canslim@lists.xmission.com<BR><B>Subject:</B> Re: =
[CANSLIM]=20
  STOPs<BR><BR></FONT></DIV>
  <DIV><FONT face=3DArial size=3D2>Thanks everyone!&nbsp; I don't use a =
deep=20
  discount broker&nbsp;(I use Schwab)&nbsp; and they don't have trailing =
stops=20
  as an option.&nbsp; 'Wish they did.....</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2>Chuck</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=3Dsderks@gmx.net href=3D"mailto:sderks@gmx.net">S=E9bastien =
Derks</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 =
2:13=20
    PM</DIV>
    <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: [CANSLIM] =
STOPs</DIV>
    <DIV><BR></DIV>
    <DIV class=3DSection1>
    <P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN =
lang=3DEN-GB=20
    style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial; =
mso-ansi-language: EN-GB">Chuck,<o:p></o:p></SPAN></FONT></P>
    <P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN =
lang=3DEN-GB=20
    style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial; =
mso-ansi-language: EN-GB"><o:p>&nbsp;</o:p></SPAN></FONT></P>
    <P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN =
lang=3DEN-GB=20
    style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial; =
mso-ansi-language: EN-GB"><o:p>&nbsp;</o:p></SPAN></FONT></P>
    <P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN =
lang=3DEN-GB=20
    style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial; =
mso-ansi-language: EN-GB">A=20
    trailing stop works like this:<o:p></o:p></SPAN></FONT></P>
    <P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN =
lang=3DEN-GB=20
    style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial; =
mso-ansi-language: EN-GB"><o:p>&nbsp;</o:p></SPAN></FONT></P>
    <P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN =
lang=3DEN-GB=20
    style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial; =
mso-ansi-language: EN-GB">If=20
    you put a stop at $9.50 (5% below $10.00) when having it stock =
bought at=20
    $10.00 then if the stock goes up to $11 then the stop will change to =
$10.45=20
    (5% below $11). It basically stays the same percentage under the new =
high=20
    reached. In case the stock drops then to $10.45 the stop order will =
be=20
    executed because it only moves up when a new high is reached from =
the point=20
    that you bought it for.<o:p></o:p></SPAN></FONT></P>
    <P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN =
lang=3DEN-GB=20
    style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial; =
mso-ansi-language: EN-GB"><o:p>&nbsp;</o:p></SPAN></FONT></P>
    <P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN =
lang=3DEN-GB=20
    style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial; =
mso-ansi-language: EN-GB"><o:p>&nbsp;</o:p></SPAN></FONT></P>
    <P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN =
lang=3DEN-GB=20
    style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial; =
mso-ansi-language: EN-GB">S=E9bastien<o:p></o:p></SPAN></FONT></P>
    <P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN =
lang=3DEN-GB=20
    style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial; =
mso-ansi-language: EN-GB"><o:p>&nbsp;</o:p></SPAN></FONT></P>
    <P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN =
lang=3DEN-GB=20
    style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial; =
mso-ansi-language: EN-GB"><o:p>&nbsp;</o:p></SPAN></FONT></P>
    <P class=3DMsoNormal style=3D"MARGIN-LEFT: 35.4pt"><FONT =
face=3DTahoma=20
    size=3D2><SPAN lang=3DEN-US=20
    style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Tahoma; mso-ansi-language: =
EN-US">-----Original=20
    Message-----<BR><B><SPAN style=3D"FONT-WEIGHT: =
bold">From:</SPAN></B>=20
    owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com]=20
    <B><SPAN style=3D"FONT-WEIGHT: bold">On Behalf Of </SPAN></B>Chuck=20
    Dreier<BR><B><SPAN style=3D"FONT-WEIGHT: bold">Sent:</SPAN></B> =
woensdag 21=20
    mei 2003 </SPAN></FONT><st1:time Hour=3D"20" Minute=3D"5"><FONT =
face=3DTahoma=20
    size=3D2><SPAN lang=3DEN-US=20
    style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Tahoma; mso-ansi-language: =
EN-US">20:05</SPAN></FONT></st1:time><FONT=20
    face=3DTahoma size=3D2><SPAN lang=3DEN-US=20
    style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Tahoma; mso-ansi-language: =
EN-US"><BR><B><SPAN=20
    style=3D"FONT-WEIGHT: bold">To:</SPAN></B>=20
    canslim@lists.xmission.com<BR><B><SPAN=20
    style=3D"FONT-WEIGHT: bold">Subject:</SPAN></B> Re: [CANSLIM]=20
    STOPs</SPAN></FONT></P>
    <P class=3DMsoNormal style=3D"MARGIN-LEFT: 35.4pt"><FONT =
face=3D"Times New Roman"=20
    size=3D3><SPAN style=3D"FONT-SIZE: =
12pt"><o:p>&nbsp;</o:p></SPAN></FONT></P>
    <DIV>
    <P class=3DMsoNormal style=3D"MARGIN-LEFT: 35.4pt"><FONT =
face=3DArial size=3D2><SPAN=20
    style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Arial">Please explain =
"trailing=20
    stop".&nbsp; How is that different than&nbsp;the stop loss that I'm =
familiar=20
    with?&nbsp; Thanks....</SPAN></FONT><o:p></o:p></P></DIV>
    <DIV>
    <P class=3DMsoNormal style=3D"MARGIN-LEFT: 35.4pt"><FONT =
face=3DArial size=3D2><SPAN=20
    style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Arial">Chuck</SPAN></FONT><o:p></o:p></P></DIV>
    <DIV>
    <P class=3DMsoNormal style=3D"MARGIN-LEFT: 35.4pt"><FONT =
face=3D"Times New Roman"=20
    size=3D3><SPAN=20
    style=3D"FONT-SIZE: 12pt">&nbsp;<o:p></o:p></SPAN></FONT></P></DIV>
    <BLOCKQUOTE=20
    style=3D"BORDER-RIGHT: medium none; PADDING-RIGHT: 0cm; BORDER-TOP: =
medium none; PADDING-LEFT: 4pt; PADDING-BOTTOM: 0cm; MARGIN: 5pt 0cm 5pt =
3.75pt; BORDER-LEFT: black 1.5pt solid; PADDING-TOP: 0cm; BORDER-BOTTOM: =
medium none">
      <DIV>
      <P class=3DMsoNormal style=3D"MARGIN-LEFT: 35.4pt"><FONT =
face=3DArial=20
      size=3D2><SPAN style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Arial">----- =
Original=20
      Message ----- <o:p></o:p></SPAN></FONT></P></DIV>
      <DIV style=3D"font-color: black">
      <P class=3DMsoNormal=20
      style=3D"BACKGROUND: #e4e4e4; MARGIN-LEFT: 35.4pt"><B><FONT =
face=3DArial=20
      size=3D2><SPAN=20
      style=3D"FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: =
Arial">From:</SPAN></FONT></B><FONT=20
      face=3DArial size=3D2><SPAN style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Arial"> <A=20
      title=3Djeffwdc@yahoo.com =
href=3D"mailto:jeffwdc@yahoo.com">jeffwdc</A>=20
      <o:p></o:p></SPAN></FONT></P></DIV>
      <DIV>
      <P class=3DMsoNormal style=3D"MARGIN-LEFT: 35.4pt"><B><FONT =
face=3DArial=20
      size=3D2><SPAN=20
      style=3D"FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: =
Arial">To:</SPAN></FONT></B><FONT=20
      face=3DArial size=3D2><SPAN style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Arial"> <A=20
      title=3Dcanslim@lists.xmission.com=20
      =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
      <o:p></o:p></SPAN></FONT></P></DIV>
      <DIV>
      <P class=3DMsoNormal style=3D"MARGIN-LEFT: 35.4pt"><B><FONT =
face=3DArial=20
      size=3D2><SPAN=20
      style=3D"FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: =
Arial">Sent:</SPAN></FONT></B><FONT=20
      face=3DArial size=3D2><SPAN style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Arial">=20
      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 =
face=3DArial=20
      size=3D2><SPAN=20
      style=3D"FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: =
Arial">Subject:</SPAN></FONT></B><FONT=20
      face=3DArial size=3D2><SPAN style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Arial"> Re:=20
      [CANSLIM] STOPs<o:p></o:p></SPAN></FONT></P></DIV>
      <DIV>
      <P class=3DMsoNormal style=3D"MARGIN-LEFT: 35.4pt"><FONT=20
      face=3D"Times New Roman" size=3D3><SPAN=20
      style=3D"FONT-SIZE: =
12pt"><o:p>&nbsp;</o:p></SPAN></FONT></P></DIV>
      <P class=3DMsoNormal style=3D"MARGIN-LEFT: 35.4pt"><FONT=20
      face=3D"Times New Roman" size=3D3><SPAN style=3D"FONT-SIZE: =
12pt">Rolf,<BR><BR>I=20
      asked a similar question a couple of months ago. <BR>Tom Worely =
posted a=20
      reply, but I regret I can't find<BR>his actual message -however I =
did=20
      print a hard copy.&nbsp; <BR>On 3/20/03 Tom wrote:<BR>...the =
normal=20
      procedure I use is to leave the stop<BR>loss unchanged (from the =
8% stop=20
      placed after<BR>purchase) until I am up at least 15%.&nbsp; At =
that=20
      point,<BR>I raise my limit to my original entry point =
(or<BR>aveerage=20
      price if multiple purchases).&nbsp; After that, I<BR>try to us a =
trailing=20
      stop 15% below the prior day<BR>(sometimes the closing price, =
sometimes=20
      the intraday<BR>high, depends on the chart, stock, fundies, how =
badly<BR>I=20
      want to take profits, etc.)&nbsp; Of course, once raised,<BR>the =
stop loss=20
      should NEVER be lowered.<BR><BR>Also found this message from Tom =
written=20
      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=20
      use hard stops, I like to put them just under<BR>where I see =
support,=20
      figuring 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=20
      looser 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 over a few months with a few<BR>&gt; 10-15% =
corrections).&nbsp;=20
      I'm especially curious about<BR>&gt; techniques people might use =
in this=20
      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=20
      have<BR>&gt; read about sets STOPs in relation to the 50 or =
200<BR>&gt;=20
      DMA, with the hope that allowing the stock<BR>&gt; relatively wide =
swings=20
      ultimately leads to big<BR>&gt; gains, as long as the DMA is still =

      rising.<BR>&gt; <BR>&gt; Any thoughts greatly appreciated.<BR>&gt; =

      <BR>&gt;&nbsp; Rolf<BR>&gt;=20
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