RE: [CANSLIM] STOPs and GRMN and selling rules

From: "Edward W. Gjertsen II" <ed@macktracks.com>
Subject: RE: [CANSLIM] STOPs and GRMN and selling rules
Date: Wed, 21 May 2003 16:24:03 -0500

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8% loss on $48=$44.16


Ed Gjertsen II
ed@macktracks.com
 
 
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- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of
michael_niemotka@baxter.com
Sent: Wednesday, May 21, 2003 4:09 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] STOPs and GRMN and selling rules


Chuck,

What made you put a stop at $44?



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


 

                    "Chuck Dreier"

                    <chucknsc@mindspring.c       To:
canslim@lists.xmission.com                                         
                    om>                          cc:

                    Sent by:                     Subject:     Re:
[CANSLIM] STOPs and GRMN and selling rules                
                    owner-canslim@lists.xm

                    ission.com

 

 

                    05/21/2003 03:44 PM

                    Please respond to

                    canslim

 

 





I was in Garmin at approx $25 and watched it rise to $48 (a nearly 100%
gain!!).  Then as it began to fall, I put a $44 stop on it - 8%.  Well,
I
stopped out the other day and watched it continue to decline thinking
I'd
done the right thing.  I was awaiting the 50 day line at about $39 to
see
how to proceed, and then low and behold - it bounces back this afternoon
on
major volume.  It's up to about $44.90 in after hours trading.

Boy, I'm at a loss about what to do now.  I honestly believe GRMN is a
great company.  I jumped off the train, and want back on.  But... boy I
don't want to get whipsawed.  The chart isn't helping me make a
decision.
Anyone else been through something like this before?

Thanks...
Chuck
 ----- Original Message -----
 From: michael_niemotka@baxter.com
 To: canslim@lists.xmission.com
 Sent: Wednesday, May 21, 2003 3:42 PM
 Subject: RE: [CANSLIM] STOPs and GRMN and selling rules


 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
                     owner-canslim@lists.xm

                     ission.com



                     05/21/2003 02:27 PM

                     Please respond to
                     canslim







 Ameritrade offers Trailing Stops
 -Martin

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