[CANSLIM] How do you handle volatile

From: Hong Hsu <honghsu@bellatlantic.net>
Subject: [CANSLIM] How do you handle volatile
Date: Fri, 11 Jul 2003 14:13:34 -0400

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  Hi,

   I fumble a solution for stock with volatile, but still have no answer.  Wonder how you manage the situation.

Let's assume a stock has solid fundies and it breakout with huge volume.  It may take 4 months to reach its top with 150% gain.  Now because not knowing where is its top at every stage before near its top, you have to make decisions, such as at 5th day after the BO, it gains 20%. Are you willing to take 25% gain next day or so, or shoot 40% gain. By shooting 40%, you may end up with 14% gain.  By same token, If it reached 40% gain, then you have to decide either to take 45% gain or 60%.  Again by shooting 60%, you have possibility to end up with 30% gain because of volatile. 


Do I have a valid question here. And how do you handle the situation. Your experience comments will be appreciated,
- -Hong
 




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