Go to Jeff Salisbury LWGate Home Page.From: Tomas <tomas986@yahoo.com>
Subject: Re: Re: [CANSLIM] Stop losses and DHI
Date: Tue, 10 Jun 2003 18:45:01 -0700 (PDT)
Previous Article (by Date): Re: [CANSLIM] New Member Tomas
Top of Thread: Re: Re: [CANSLIM] Stop losses and DHI "Bill Triffet"
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VRNT is back to a little above the pivot point. Should I buy it back? Or should I wait for a few days and see what the market is doing. The market seems to be at a critical point where it is deciding if it will head north or south. What is the rule for buying back a stock that had such a big dip 2 days after the BO with big volume, but is now gaining back ground? Is the big dip a red flag enough to stay way from this stock? With this stock, I feel like I am currently going through a common mistake made by newbie. You experience investors better stop me if I am going to make a big mistake buying this stock back. :) tomas - --- Bill Triffet <btriffet@earthlink.net> wrote: > Hi Tomas, > > I think you partially answered yourself here. Had > you bought it on the day > of the breakout 6/3 you'd still be in (maybe...). > > Unfortunately VRNT gapped up the next day. I'd just > pass on it and wait for > a pullback which it did on 6/6. The huge volume of > the pullback though was a > red flag to me. I might have sold it even if I got > it in the range due to > that. Also given the fact I've been using 7% > stop-losses, I'd have been > stopped out as well. > > Btw, I never use overnight buy orders as there's > just too much volatility in > the first 30min. Also, I want to see the price as I > buy it. > > In the past I've used buy-limit orders for stocks I > felt were ready to > breakout. The issue there was to make sure it had > enough projected volume > for the day. If it closed up but on low volume I'd > almost always have to > sell the next day. For this reason I just stick to > market orders for buys. > The trick is to get some free time during the work > day to "sneak a peek" at > my watchlist. > > -- > Bill > > > > ----- Original Message ----- > From: "Tomas" <tomas986@yahoo.com> > To: <canslim@lists.xmission.com> > Sent: Monday, June 09, 2003 7:59 PM > Subject: Re: Re: [CANSLIM] Stop losses and DHI > > > > Bill, > > > > I did not buy DHI, but had a position on VRNT, > which > > went down 12% last Friday(no stop loss order in > > place). I sold the stock this morning and > actually > > walked away with a 18% lost. Post analysis: > > > > 1) BO on 6/3 with close $24.37 (Pivot point at > > $23.95). Put an order to buy on 6/3 that night. > 6/4 > > morning, order execute at $26.21 (about 9% above > pivot > > point + .10). Bought extended, should have put a > > limit order instead of a market order? But, if > use > > market order sometime will miss the boat on a good > > stock... > > > > 2) On 6/6, stock went down $2.99. Sold today at > > $21.53. Should have put a stop order when I > bought > > it? Probably. > > > > Final note, if I bought it right, at pivot point + > > $.10, then I would still be in the stock today. > It > > never actually go below the 8%. I guess my > trigger > > finger is too slow, and need to be faster next > time... > > > > So, this is why I am trying to figure out what > kind of > > orders (stop/lost, market, limit,...) I need to do > for > > buys and sells. It's kind of though, since every > kind > > of order has its pro's and con's. > > > > > > Regards, > > tomas > > > > > > --- Bill Triffet <btriffet@earthlink.net> wrote: > > > Tomas, > > > To this day the main rule I've never disagreed > with > > > WON has been "preservation of capital". " Live > to > > > trade another day" is the way to go. > > > > > > Appling a trailing stop after you've made some > gains > > > may knock you out of the stock. Maybe it > continues > > > on up after that. Maybe not. The point is you > live > > > to trade another day. > > > > > > Maybe give yourself more wiggle room if a stock > is > > > ramping up quickly and you've made some gains. > > > Example: 7% stop-loss right after your purchace > then > > > slide it up to just at or above the pivot after > > > you've made say 10-12%. This is a very > subjective > > > thing but for me it satisfies two rules. > > > 1. Sell at 7% loss - no matter what. > > > 2. Don't let a profit turn into a loss > > > > > > You didn't say when/where you bought DHI. How > tight > > > was your stop? > > > > > > I have to agree with Mike that unless your doing > > > thinly traded stocks or are making some LARGE > block > > > trades your trades are under the "big guys" > radar > > > screens. I recall WON mentioning the phenomina > at > > > one of his seminars but he does much larger > trades > > > than me... > > > > > > -- > > > Bill > > > > > > -------Original Message------- > > > From: Tomas <tomas986@yahoo.com> > > > Sent: 06/09/03 10:40 AM > > > To: canslim@lists.xmission.com > > > Subject: Re: [CANSLIM] Stop losses and DHI > > > > > > > > > > > So, the question is does it happens often > enough > > > to > > > warrent not using stop orders? I guess this is > all > > > dependent on the investor, if he/she have time > to > > > monitor intraday action and the risk tolerance > > > level. > > > > > > > > > tomas > > > > > > > > > --- michael_niemotka@baxter.com wrote: > > > > > > > > I have also been stopped out in similar > instances, > > > > and I can only assume > > > > that the specialists see large blocks at > certain > > > > price levels, because I > > > > cannot believe that they would manipulate the > > > market > > > > unless it was really > > > > worth the while. My $1000 worth of stock > would > > > be > > > > in the noise level if > > > > considered on its own. > > > > > > > > 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 > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > Ian <ianstm@shaw.ca> > > > > > > > > > > > > > > > > > > Sent by: > > > To: > > > > canslim@lists.xmission.com > === message truncated === __________________________________ Do you Yahoo!? Yahoo! Calendar - Free online calendar with sync to Outlook(TM). http://calendar.yahoo.com - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
Previous Article (by Date): Re: [CANSLIM] New Member Tomas
Top of Thread: Re: Re: [CANSLIM] Stop losses and DHI "Bill Triffet"
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