RE: [CANSLIM] FWHT, yet another instance where my tiggerfinger is too slow

From: "Kelly Short" <kelly.short@fw.us.neoris.com>
Subject: RE: [CANSLIM] FWHT, yet another instance where my tiggerfinger is too slow
Date: Wed, 18 Jun 2003 15:01:04 -0500

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Top of Thread: RE: [CANSLIM] FWHT, yet another instance where my tiggerfinger is too slow "Katherine Malm"
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I must have woken up on the right side of the bed this morning because I =
got into FWHT at $15.85 on its only pullback of the day. This is $0.10 =
higher than the 5% Max price, but I figured, what the heck. Now that I'm =
feeling dandy about my decision to "pull the trigger" I am now very =
concerned about taking profits. IBD states the following on selling:

++++++++++++++++++++++++++++
A strategy that safeguards your profits is to sell after you've captured =
a 20% gain. This is the conservative approach to profit-taking that =
works like "building blocks." Once you sell and take a 20% gain, =
compounding it with other 20% profits taken during the year should net =
you very substantial gains overall. This gets back to one of the basic =
tenets of investing: The key to being really successful is to capitalize =
on your strongest stocks. The 20% profits will also outweigh any =
mistakes you make in stocks that start to take a nosedive if you also =
cut losses at 8% (see Lesson 1, "When To Sell Stocks To Cut Losses.") =
These two strategies alone could help you become quite successful in the =
market.

There's an exception to this rule, however. If a stock races up 20% in =
one to four weeks out of a proper base, it probably means it has plenty =
of fuel left and you should hang on to it. It may be your best stock. =
And always review the market conditions. In a strong market, you will =
see this situation often.

The shorter the trip to the 20% level, the stronger the stock. The 95 =
best-performing stocks of 1996 and 1997 took just five weeks to surge =
20%. On average, these stocks gained 421%. Among these 95 stocks, 21 =
jumped 20% within a mere week. Those went on to surge, on average, 484%. =
In 1999, many of the best stocks took just one week to run up 20% - some =
did it in a mere three days.=20
+++++++++++++++++++++++++++++

It appears FWHT will end the day up around 36% for the day (or 17% for =
me). I haven't broken the 20% up rule mentioned above but am thinking =
about placing a stop loss at 10% of the close price for half my =
position, and a 50% stop loss for the other half. Is this too =
conservative? According to what IBD states above this stock should take =
off again tomorrow- and I certainly don't want to miss out on those =
profits. Your thoughts are greatly appreciated.

BTW- The only way I was able to find and act so quickly on this stock =
was because of my trial membership to cwhCharts.com. This site is =
awesome! [I am not affiliated with cwhCharts.com in any way but am very =
impressed with the value they offer. And for those of you with slow =
trigger fingers- the cell phone alert is what saved me from missing out =
this morning.]

Kelly



- -----Original Message-----
From: Tim Katona [mailto:tkat17@earthlink.net]
Sent: Wednesday, June 18, 2003 2:44 PM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] FWHT, yet another instance where my tiggerfinger
is too slow


Here is what 'could' have happened with a FWHT buy stop limit order =
today.
(I was asleep at the wheel!)

FWHT		Using cwh BO price+.10		$ amount (WON pyramid up)
$15.10		pivot				$3,000 buy stop at $15.10, limit at $15.25
$15.25 		pivot +1%
$15.40 		pivot +2%			$2,000 buy stop at $15.40, limit at $15.55
$15.55 		pivot +3%
$15.70 		pivot +4%			$1,000 buy stop at $15.70, limit at $15.86
$15.86 		pivot +5%
						total $5,000 or $50,000 or whatever position

With the FWHT breakout today and a stop limit order, I at least would =
have
bought $1,000 at $15.86 at 9:35AM and $2,000 at $15.55 at 9:36AM since =
it
gapped up to $16.50 at 9:30AM and then fell back to $15.54.

Otherwise, I 'could' have bought as high as $16.50 using a buy stop (at
$15.10 but gapped past it). Much less risk using a buy stop limit order.

On to the next breakout!
Tim


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