Re: [CANSLIM] STOPs and GRMN and selling rules

From: Fanus <fanus13@yahoo.com>
Subject: Re: [CANSLIM] STOPs and GRMN and selling rules
Date: Thu, 22 May 2003 14:07:24 -0700 (PDT)
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Chuck

The 8% refer to the initial stop loss.  This is the
stop under your entry price, the percentage you are
willing to risk.  The 8% doesn't refer to your
trailing stop.  All the other sell rules come in play
once you have a decent profit.  

- - Fanus

- --- Chuck Dreier <chucknsc@mindspring.com> wrote:
> Mike,
> The stop was at 8% below the top, rounding off to
> the nearest dollar.  I figure a drop of 8% from the
> high (actually it was a little more than that)
> follows the WON rule.
> Chuck
>   ----- Original Message ----- 
>   From: michael_niemotka@baxter.com 
>   To: canslim@lists.xmission.com 
>   Sent: Wednesday, May 21, 2003 5:09 PM
>   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
> 
> 
> 
> 
> 
> 
> 
> 
=== message truncated ===


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