Re: [CANSLIM] Big Gain vs Many little gains?

From: "Dave Bigham" <ndbigham@cox.net>
Subject: Re: [CANSLIM] Big Gain vs Many little gains?
Date: Wed, 30 Jul 2003 00:04:53 -0400
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  ----- Original Message -----=20
  From: Pete=20
  To: canslim@lists.xmission.com=20
  Sent: Sunday, July 27, 2003 11:47 AM
  Subject: [CANSLIM] Big Gain vs Many little gains?


  I'm constantly struggling with the issue of holding on hoping I have =
the next CSCO/MSFT/AMZN vs taking a lot of gains in the 20%-50% area.  I =
had a broker that made me a lot of money taking 20% gains in 2000 vs =
holding on.  My post analysis showed that only one or two stocks would =
have done better but holding on got me into new opportunities instead of =
waiting for a loss or a slightly better gain.  I'd like to hear some =
other experiences.   I get the impression IBD will sell these stocks at =
the top and buy them back if they breakout again.
  Peter

  Peter,

  While I don't know for sure that Bernard Baruch ever said it, I have =
attributed it to him - I'll give the market the first and last twenty =
percent as long as I can keep the sixty percent in the middle.  This =
falls well into the idea of cut your loses and let your profits ride.  =
When things go south, cut loose.  Otherwise, stay cool.  This seems to =
be consistant with WON's ideas of sell rules.  With today's discount =
brokers, you could even have a graduated sell-off of a stock that's =
falling.  For example, sell 30% on a ten percent drop from a high.  Sell =
an additional 30% on a fifteen percent drop from the last high.  Sell =
the remaining 40% on a twenty percent drop from any subsequent or the =
last high.

  Why do it this way?  It frees up capital from non- or under-performing =
stocks.  This can then be used for newer, more exciting prospects.

  Good Hunting!
  Dave Bigham

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<HTML><HEAD><TITLE>Message</TITLE>
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<BLOCKQUOTE dir=3Dltr=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=3Dpeten123@nc.rr.com =
href=3D"mailto:peten123@nc.rr.com">Pete</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> Sunday, July 27, 2003 =
11:47=20
AM</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] Big Gain vs =
Many=20
  little gains?</DIV>
  <DIV><BR></DIV>
  <DIV><FONT face=3DArial size=3D2>I'm constantly struggling with the =
issue of=20
  holding on hoping I have the next CSCO/MSFT/AMZN vs taking a lot of =
gains in=20
  the 20%-50% area.&nbsp; I had a broker that made me a lot of money =
taking 20%=20
  gains in 2000 vs holding on.&nbsp; My post analysis showed that only =
one or=20
  two stocks would have done better but holding on got me into new =
opportunities=20
  instead of waiting for a loss or a slightly better gain.&nbsp; I'd =
like to=20
  hear some other experiences.&nbsp;&nbsp; I get the impression IBD will =
sell=20
  these stocks at the top and buy them back if they breakout =
again.</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2>Peter</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
  <DIV><FONT face=3DArial size=3D2>Peter,</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
  <DIV><FONT face=3DArial size=3D2>While I don't know for sure that =
Bernard Baruch=20
  ever said it,&nbsp;I have attributed it to him - I'll give the market =
the=20
  first and last twenty percent as long as I can keep the sixty percent =
in the=20
  middle.&nbsp; This falls well into the idea of cut your loses and let =
your=20
  profits ride.&nbsp; When things go south, cut loose.&nbsp; Otherwise, =
stay=20
  cool.&nbsp; This seems to be consistant with WON's ideas of sell =
rules.&nbsp;=20
  With today's discount brokers, you could even have a graduated =
sell-off of a=20
  stock that's falling.&nbsp; For example, sell 30% on a ten percent =
drop from a=20
  high.&nbsp; Sell an additional 30% on a fifteen percent drop from the =
last=20
  high.&nbsp; Sell the remaining 40% on a twenty percent drop from any=20
  subsequent or the last high.</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
  <DIV><FONT face=3DArial size=3D2>Why do it this way?&nbsp; It frees up =
capital=20
  from non- or under-performing stocks.&nbsp; This can then be used for =
newer,=20
  more exciting prospects.</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
  <DIV><FONT face=3DArial size=3D2>Good Hunting!</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2>Dave =
Bigham</FONT></DIV></BLOCKQUOTE></BODY></HTML>

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