RE: [CANSLIM] BCGI big dip

From: "Ron Brown" <rbrown@neb.rr.com>
Subject: RE: [CANSLIM] BCGI big dip
Date: Thu, 17 Jul 2003 14:25:54 -0500
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Hi Tomas,

A hard stop does absolutely no good on a gap down.

The stop this a.m. would have become a market order, and you would have been
filled near the opening price around $13.70.  I believe in hard stops, and
use them, but in situations like this, you are at the mercy of the market.

The only warning you had was that BCGI was struggling to get past its recent
high, and yesterday's long-legged Doji on extremely heavy volume indicated
that indecision surrounded BCGI.  When I see a long-legged Doji, I usually
exit a position because it often forewarns of a turn in a stock or index.

I'm sorry you got hurt on this one.  I hope your position was not excessive.

Ron

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Jeff Bogatay
Sent: Thursday, July 17, 2003 2:02 PM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] BCGI big dip


Does the island reversal that kicked off the left side of the cup have
any implications to canslim?  The failed bottoming patterns? (I see a
failed double bottom transforming into a failed inverse head & shoulders
bottom)  That large spinning top the day before the big drop looks a bit
ominous as well.


I agree with Gene.  One of the purposes of hard stops is to remove
emotions from the equation.

Seems like you are in "hope" mode.  Not a good place to be.



- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of Tomas
Sent: Thursday, July 17, 2003 2:47 PM
To: canslim@lists.xmission.com
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?
>
> Gene
>
>   ----- Original Message -----
>   From: Tomas
>   To: canslim canslim
>   Sent: Thursday, July 17, 2003 1:28 PM
>   Subject: [CANSLIM] BCGI big dip
>
>
>   Hi All,
>
>   I recently bought BCGI at BO on 07/08 for $18.89.
>   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.
>
>   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)?
>
>
>   Regards,
>   tomas
>
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>


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