Re: [CANSLIM] Break outs or pullbacks

From: Bill Triffet <btriffet@earthlink.net>
Subject: Re: [CANSLIM] Break outs or pullbacks
Date: Thu, 10 Jul 2003 08:57:08 -0700 (PDT)

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Mike,

I started out this "trading season" strictly buying breakouts. I've since started keeping equal watch on pullbacks on recent breakouts for second chance entries provided the volume is light.

My reasoning is that in recent buys SHFL, AMHC, ADVP, to name a few, they broke out nicely. They quickly gained steam within a matter of a week or two. Problem was - they all started breaking down. It was not on huge volume but I didn't want to see my profits turn into losses. My stop-losses were set perhaps too tight so they all sold off. Looking back, offered secondary entry points. I blame this short sightedness on my technique to several years of bear rallies with quick 10-12% gains that fell back down equally as fast. It's tough to watch an issue shoot up 12% then fall back to my buy point. 

I've since made a mental pact with myself (g) to allow them to fall right back to the base for the first few weeks - regardless of it being 10-20% in the first few weeks. I also think the secondary entry point is a good option. It's like a final shakeout for the stock to move ahead unencumbered by "waffley selling" like I was doing.

- --
Bill
 




- -------Original Message-------
From: michael_niemotka@baxter.com
Sent: 07/10/03 08:28 AM
To: canslim@lists.xmission.com
Subject: [CANSLIM] Break outs or pullbacks

> 
> A general question to the group:

Do you tend to look strictly for breakouts from sound bases, and/or do you
look for secondary entry points into stocks that have already broken out
and still show promise?

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



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