FW: VRNT (was: [CANSLIM] Stop losses and DHI)

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: FW: VRNT (was: [CANSLIM] Stop losses and DHI)
Date: Wed, 11 Jun 2003 00:23:59 -0500
Next Article (by Date): Re: VRNT (was: [CANSLIM] Stop losses and DHI) Chazmoore@aol.com
Previous Article (by Date): RE: VRNT (was: [CANSLIM] Stop losses and DHI) Tomas
Next in Thread: Re: FW: VRNT (was: [CANSLIM] Stop losses and DHI) Tomas
Articles sorted by: [Date] [Author] [Subject]
Hi Tomas,

I realized in reading through my original response that I was rather sloppy
in editing. My apologies, as #7 was supposed to read "...because I want to
prove something..." rather than "...prove I was something..." I'm sure the
sentence ended up that way because I rewrote it a couple of times!

The question was really intended as a self-reflection to be sure there's no
emotional component to the decision to go after it again. I find this
helpful when I get stuck on something and can't quite articulate the reason.
99% of the time I have good reason to pursue something, but on rare
occasion, I find that it's not  well-considered reasoning, and after
answering this question, will drop the stock from further consideration and
move on.

And yes, these questions would have to be asked in the context of stocks
currently on your radar. Assuming you have cast a good net, then VRNT can be
weighed in comparison to alternative investments.

There's no "right" answer to these questions, just answers from your
personal perspective.

Katherine

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Tomas
Sent: Tuesday, June 10, 2003 10:53 PM
To: canslim@lists.xmission.com
Subject: RE: VRNT (was: [CANSLIM] Stop losses and DHI)


Katherine,

Question 4,5,6 may be hard to answer.  If I add "in my
watchlist" at the end of those questions, then it is
easier to answer.  My point is you are referring to
all the stocks I am monitoring on my radar, right?  I
guess so, or else there's no point in asking those 3
question since there are always some better stock out
there that you don't know about.

1) yes
2) yea
3) same as alway (for loss, sell at 7-8%; for
   win, depends on how the stock is doing).
4) hmmm, I think so... currently most of the stocks
   in my watchlist is extended.
5) no, not in my watchlist
6) no
7) I don't think I'm being stubborn and I don't feel
like I have to prove anything with this stock. :)
This stock has very good fundies, if the technical is
right(market will go up), it is a good pick (IMHO).


Regards,
tomas

- --- Katherine Malm <kmalm@earthlink.net> wrote:
> Hi Tomas,
>
> Here are some questions you might ask in making this
> kind of decision:
>
> (1) If I buy it back, is it a low-risk entry?
> (2) If I buy it back, can I handle the price
> volatility that it typically
> displays?
> (3) If I buy it back, what will be my exit strategy,
> both for profit taking
> and for cutting losses?
> (4) Is this the best stock I can buy with my money?
> Or, would my money be
> better off in *any* other investment than this?
> (This is also a good
> question to ask when struggling with a sell
> decision.)
> (5) Are there other stocks that are either pulling
> back on lower volume and
> showing less volatility?
> (6) Are there other stocks, equally attractive, that
> are offering a low risk
> entry and/or a fresh breakout?
> (7) What is my real motivation for buying it back?
> For example, is it
> because I've answered all of the questions above and
> still feel that it is
> the best investment at the time? Is it because I
> want to prove I was
> something? Am I being smart or just stubborn? Etc.
>
> Questions like this force the trader to be
> completely honest within
> him/herself and make consistently wise and
> emotionless decisions.
>
> Regardless of your decision, there are times where
> it can take a couple of
> tries with the same stock to get it "right" and that
> is A-OK, as it is a
> compilation of factors acting on the stock all at
> the same time. On the
> other hand, sometimes when breakouts are whipsawing
> you one after the other,
> that's a sign that the rally may be wearing thin.
> One stock doesn't make a
> trend, but it's something to consider.
>
> Katherine
>
> -----Original Message-----
> From: owner-canslim@lists.xmission.com
> [mailto:owner-canslim@lists.xmission.com]On Behalf
> Of Tomas
> Sent: Tuesday, June 10, 2003 7:45 PM
> To: canslim@lists.xmission.com
> Subject: Re: Re: [CANSLIM] Stop losses and DHI
>
>
> 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.
>
=== 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.



- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim".  Do not use quotes in your email.
Go to Jeff Salisbury LWGate Home Page.