Re: [CANSLIM] STOPs and GRMN and selling rules

From: jch <jchjch@earthlink.net >
Subject: Re: [CANSLIM] STOPs and GRMN and selling rules
Date: Wed, 21 May 2003 16:44:39 -0500
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Mike:  I think he noted desire to stop out 8% below $48--I have another 
comment re stops whether they be trailing at some fixed % or a fixed price 
rachet, fixed price, or fixed % from purchase..Am I correct in all cases 
one could see an 8% stop loss actually balloon to much more during a 
volatile trade day as the stop loss executes at the next trade below your 
stop loss price?..That's occurred with my trades more than once.
jchjch


>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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