Go to Jeff Salisbury LWGate Home Page.From: "Gene Ricci" <genr@swbell.net>
Subject: Re: [CANSLIM] BCGI big dip
Date: Thu, 17 Jul 2003 14:19:17 -0500
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This is a multi-part message in MIME format. - ------=_NextPart_000_06C9_01C34C6E.687F1BA0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Tomas, yes.... a hard stop of some kind.... 7-8% too tight, use 15 or 20 = or 25%.... something. One of the above would have saved you at least a = dollar. Ah TUITION.... if you just want proof I have a box full of 2001 and = early 2002 trades that cost me enough tuition to own the school .... = all because I didn't use the following three rules: 1) Always use protective stops when you enter a new position to limit = your theoretical risk on each trade.... theoretical risk =3D distance = between entry price and 'open protective stop"... 2) Use Trailing stops to lock in profits as a trade moves in your favor 3) Use 'creeping commitment' to start with a small position and build to = a larger one as your trailing stop eliminates your risk to initial = capital My daily routine: let my profits run on any position until it's: 1. over-valued 2. over-owned 3. stopped out - trailing stop It took me a long time (too long) to get the grasp that it requires a = stock to double in price to recover a 50% loss. AND, after suffering a = loss, where the best place is to recover that loss.... wait for the = stock to recover ... or find a better stock to buy... Gene ----- Original Message -----=20 From: Tomas=20 To: canslim@lists.xmission.com=20 Sent: Thursday, July 17, 2003 1:46 PM Subject: Re: [CANSLIM] BCGI big dip Gene, I don't see this as a bad thing. This is another tuition fee. I look at it is way, I will make a lot of mistake. It is better to make the mistakes sooner than later (because I use less money now than later). I would like to get as much experience and lesson learn out of this as possible. On your second sentence, you are saying that I should put hard stop or stop limit on all my trades? tomas --- Gene Ricci <genr@swbell.net> wrote: > Hi Tomas, sorry to hear of your bad luck. I have to > caution you to not trade with a hard stop of some > limit or another.... I see it's now down to a 39% > drop.... when does benign become terminal? >=20 > Gene >=20 > ----- Original Message -----=20 > From: Tomas=20 > To: canslim canslim=20 > Sent: Thursday, July 17, 2003 1:28 PM > Subject: [CANSLIM] BCGI big dip >=20 >=20 > Hi All, >=20 > I recently bought BCGI at BO on 07/08 for $18.89.=20 > Good fundies and good CwH. No real yellow flags > that > I can see. Yesterday on after hour trading, it > went > down about 33% due to news on a potential lost of > a > big customer (51% of revenue). Also, earnings > release > yesterday was very good. So, my question is > should I > know this coming? Maybe I missed some big warning > signs. Maybe I should have noticed the active > insider > selling the last few months. Another other > warning > signs that I would have noticed? Or is this > something > that you cannot protect from? I am think there > should > be enough warning signs for this king of thing. >=20 > Is might be another dumb question, should I just > sell > it now (you might be thinking "What! You have not > sold > it yet"). Or wait for a few days to see what > happens > and maybe I can get some of my loss back? Am I > just > been "hopeful when I should be fearful" (ie, sell > and > get out ASAP)? >=20 >=20 > Regards, > tomas=20 >=20 > __________________________________ > Do you Yahoo!? > SBC Yahoo! DSL - Now only $29.95 per month! > http://sbc.yahoo.com >=20 > - > -To subscribe/unsubscribe, email > "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your > email. >=20 __________________________________ Do you Yahoo!? SBC Yahoo! DSL - Now only $29.95 per month! http://sbc.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. - ------=_NextPart_000_06C9_01C34C6E.687F1BA0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2800.1106" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV><FONT face=3D"Comic Sans MS">Tomas, yes.... a hard stop of some = kind.... 7-8%=20 too tight, use 15 or 20 or 25%.... something. One of the above would = have saved=20 you at least a dollar.</FONT></DIV> <DIV><FONT face=3D"Comic Sans MS"></FONT> </DIV> <DIV><FONT face=3D"Comic Sans MS">Ah TUITION.... if you just want proof = I have a=20 box full of 2001 and early 2002 trades that cost me enough tuition = to own=20 the school .... all because I didn't use the following three=20 rules:</FONT></DIV> <DIV><FONT face=3D"Comic Sans MS"></FONT> </DIV> <DIV><FONT face=3D"Comic Sans MS">1) Always use protective stops when = you enter a=20 new position to limit your theoretical risk on each trade.... = theoretical risk =3D=20 distance between entry price and 'open protective stop"...</FONT></DIV> <DIV><FONT face=3D"Comic Sans MS">2) Use Trailing stops to lock in = profits as a=20 trade moves in your favor</FONT></DIV> <DIV><FONT face=3D"Comic Sans MS">3) Use 'creeping commitment' to start = with a=20 small position and build to a larger one as your trailing stop = eliminates your=20 risk to initial capital</FONT></DIV> <DIV><FONT face=3D"Comic Sans MS"></FONT> </DIV> <DIV><FONT face=3D"Comic Sans MS">My daily routine: let my profits run = on any=20 position until it's:</FONT></DIV> <DIV><FONT face=3D"Comic Sans MS">1. over-valued</FONT></DIV> <DIV><FONT face=3D"Comic Sans MS">2. over-owned</FONT></DIV> <DIV><FONT face=3D"Comic Sans MS">3. stopped out - trailing = stop</FONT></DIV> <DIV><FONT face=3D"Comic Sans MS"></FONT> </DIV> <DIV><FONT face=3D"Comic Sans MS">It took me a long time (too long) to = get the=20 grasp that it requires a stock to double in price to recover a 50% = loss. =20 AND, after suffering a loss, where the best place is to recover = that=20 loss.... wait for the stock to recover ... or find a better stock to=20 buy...</FONT></DIV> <DIV><FONT face=3D"Comic Sans MS"></FONT> </DIV> <DIV><FONT face=3D"Comic Sans MS">Gene</FONT></DIV> <DIV><FONT face=3D"Comic Sans MS"></FONT> </DIV> <DIV><FONT face=3D"Comic Sans MS"></FONT> </DIV> <BLOCKQUOTE=20 style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; = BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV> <DIV=20 style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: = black"><B>From:</B>=20 <A title=3Dtomas986@yahoo.com = href=3D"mailto:tomas986@yahoo.com">Tomas</A> </DIV> <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A = title=3Dcanslim@lists.xmission.com=20 = href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= </DIV> <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Thursday, July 17, 2003 = 1:46=20 PM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] BCGI big = dip</DIV> <DIV><BR></DIV>Gene, I don't see this as a bad thing. This = is<BR>another tuition fee. I look at it is way, I will make<BR>a = lot of=20 mistake. It is better to make the mistakes<BR>sooner than later = (because=20 I use less money now than<BR>later). I would like to get as much = experience and<BR>lesson learn out of this as possible.<BR><BR>On your = second=20 sentence, you are saying that I should<BR>put hard stop or stop limit = on all=20 my trades?<BR><BR>tomas<BR><BR>--- Gene Ricci <<A=20 href=3D"mailto:genr@swbell.net">genr@swbell.net</A>> wrote:<BR>> = Hi Tomas,=20 sorry to hear of your bad luck. I have to<BR>> caution you to not = trade=20 with a hard stop of some<BR>> limit or another.... I see it's now = down to a=20 39%<BR>> drop.... when does benign become terminal?<BR>> = <BR>>=20 Gene<BR>> <BR>> ----- Original Message -----=20 <BR>> From: Tomas <BR>> To: canslim = canslim=20 <BR>> Sent: Thursday, July 17, 2003 1:28 = PM<BR>> =20 Subject: [CANSLIM] BCGI big dip<BR>> <BR>> <BR>> = Hi=20 All,<BR>> <BR>> I recently bought BCGI at BO on = 07/08 for=20 $18.89. <BR>> Good fundies and good CwH. No real = yellow=20 flags<BR>> that<BR>> I can see. Yesterday on = after=20 hour trading, it<BR>> went<BR>> down about 33% due = to news=20 on a potential lost of<BR>> a<BR>> big customer (51% = of=20 revenue). Also, earnings<BR>> release<BR>> = yesterday=20 was very good. So, my question is<BR>> should = I<BR>> =20 know this coming? Maybe I missed some big = warning<BR>> =20 signs. Maybe I should have noticed the active<BR>>=20 insider<BR>> selling the last few months. Another = other<BR>> warning<BR>> signs that I would have=20 noticed? Or is this<BR>> something<BR>> that = you=20 cannot protect from? I am think there<BR>> = should<BR>> =20 be enough warning signs for this king of thing.<BR>> = <BR>> =20 Is might be another dumb question, should I just<BR>>=20 sell<BR>> it now (you might be thinking "What! You have = not<BR>> sold<BR>> it yet"). Or wait for a few days = to see=20 what<BR>> happens<BR>> and maybe I can get some of = my loss=20 back? Am I<BR>> just<BR>> been "hopeful when I = should=20 be fearful" (ie, sell<BR>> and<BR>> get out = ASAP)?<BR>>=20 <BR>> <BR>> Regards,<BR>> tomas = <BR>>=20 <BR>> = __________________________________<BR>> Do=20 you Yahoo!?<BR>> SBC Yahoo! DSL - Now only $29.95 per=20 month!<BR>> <A=20 href=3D"http://sbc.yahoo.com">http://sbc.yahoo.com</A><BR>>=20 <BR>> -<BR>> -To subscribe/unsubscribe,=20 email<BR>> "<A=20 = href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>>= ; =20 -In the email body, write "subscribe canslim" or<BR>> =20 -"unsubscribe canslim". Do not use quotes in your<BR>> = email.<BR>>=20 <BR><BR><BR>__________________________________<BR>Do you = Yahoo!?<BR>SBC Yahoo!=20 DSL - Now only $29.95 per month!<BR><A=20 href=3D"http://sbc.yahoo.com">http://sbc.yahoo.com</A><BR><BR>-<BR>-To = subscribe/unsubscribe, email "<A=20 = href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In= the=20 email body, write "subscribe canslim" or<BR>-"unsubscribe = canslim". Do=20 not use quotes in your email.<BR></BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_06C9_01C34C6E.687F1BA0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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