Re: [CANSLIM] BCGI big dip

From: Tomas <tomas986@yahoo.com>
Subject: Re: [CANSLIM] BCGI big dip
Date: Thu, 17 Jul 2003 13:19:55 -0700 (PDT)
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Gene,

I agree with you about the hard stops.  Just want to
point out that for this situation, the stop would not
help.

tomas

- --- Gene Ricci <genr@swbell.net> wrote:
> 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 = 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 ----- 
>   From: Tomas 
>   To: canslim@lists.xmission.com 
>   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?
>   > 
>   > 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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