From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #1298 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Friday, April 20 2001 Volume 02 : Number 1298 In this issue: RE: [CANSLIM] Futures volatile Re: [CANSLIM] stop loss order Re: [CANSLIM] Futures volatile RE: [CANSLIM] stop loss order Re: [CANSLIM] stop loss order Re: [CANSLIM] PECS Re: [CANSLIM] stop loss order ---------------------------------------------------------------------- Date: Fri, 20 Apr 2001 14:59:31 -0400 From: "Rick Parsons" Subject: RE: [CANSLIM] Futures volatile This is a multi-part message in MIME format. - ------=_NextPart_000_0027_01C0C9AA.8106BE60 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Tom, I disagree. There is a "M" in Canslim. Your posts give us an = insight into the market. We cannot just focus on the leaves of Canslim. = We need to see the big picture..the trees. Rick -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley Sent: Thursday, April 19, 2001 11:11 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Futures volatile Sorry Norman, I promised. But hopefully you can learn to collect the = same information and not need me for this. Besides, David is correct, = it's hardly CANSLIM. Tom Worley stkguru@netside.net ----- Original Message -----=20 From: Norman=20 To: canslim@lists.xmission.com=20 Sent: Thursday, April 19, 2001 10:59 PM Subject: Re: [CANSLIM] Futures volatile I do enjoy seeing the futures posts and how you sum up the foreign = markets. Your insight has educated me in many ways. Norman Boyd Port Lavaca (Port of the Cow), TX theboyd@tisd.net ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Thursday, April 19, 2001 9:30 PM Subject: Re: [CANSLIM] Futures volatile Sorry David, I won't bother you with them again. I simply = recognized that some members like myself were being sorely tempted to = plunge in right now, just anxiously waiting for the precise moment. = Since I am usually up earlier than most, and have more time to review = world markets, thought it might be helpful to have a quick summary of = what I had learned over the prior 3-4 hours. At least I originated new emails, and used subject lines that = corresponded with the content!! Wish all members would remember to do = that. It's easier then to delete without reading if you don't want them. And Walter, don't worry, I am not offended by David's view. I get = enough personal email already that I know some members find value in my = posts. David, for clarification, I am not, nor have ever been, a day = trader. I have learned a lot from day traders, but would not put myself = thru the stress. And since CANSLIM is also not a daytrading system, I = see no value in a daytrader posting numerous buys and sells where many = would not meet CANSLIM criteria, much less be of any value to those of = us that read our email early in the morning or quite late at night, but = never during the trading day. BTW, for those members trying to bottom fish some quality big caps = (remember my comment about a week ago to look for ones that bottomed = early??), or if you just want to check market trends and sentiment, then = watch NOK and MRK tomorrow. Both report before the opening, and both are = expected to beat estimates. Tom Worley stkguru@netside.net ----- Original Message -----=20 From: David Squires=20 To: canslim@lists.xmission.com=20 Sent: Thursday, April 19, 2001 8:59 AM Subject: Re: [CANSLIM] Futures volatile Tom, A few weeks ago you got quite upset with someone who was posting = his trades frequently suggesting you are not a day trader. How is your = morning blow by blow futures and earnings posts any different? I'm not = trying to be difficult but if I want to know the news and futures quotes = I can look at my screen just like you.=20 DSquires ----- Original Message -----=20 From: Tom Worley=20 To: CANSLIM=20 Sent: Thursday, April 19, 2001 6:40 AM Subject: [CANSLIM] Futures volatile In the past hour or so, I have watched futures decline to = where the S&P500 was half a percent in the hole, and Naz futures were = only up half a percent. About 15 minutes or so ago, Naz had recovered to = nearly up 1%. Now I look and Naz is once again limit up (over 2%) and = S&P500 up a percent. Europe is still down, but looks to be recovering somewhat. Should be an interesting morning, Tom Worley stkguru@netside.net - ------=_NextPart_000_0027_01C0C9AA.8106BE60 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Tom, I disagree.  There is a "M" in Canslim.  = Your=20 posts give us an insight into the market.  We cannot just focus on = the=20 leaves of Canslim.  We need to see the big picture..the=20 trees.
 
Rick
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom=20 Worley
Sent: Thursday, April 19, 2001 11:11 PM
To: = canslim@lists.xmission.com
Subject: Re: [CANSLIM] Futures=20 volatile

Sorry Norman, I promised. But hopefully you can = learn to=20 collect the same information and not need me for this. Besides, David = is=20 correct, it's hardly CANSLIM.
 
Tom Worley
stkguru@netside.net
 
 
----- Original Message -----
From:=20 Norman
To: canslim@lists.xmission.com= =20
Sent: Thursday, April 19, = 2001 10:59=20 PM
Subject: Re: [CANSLIM] = Futures=20 volatile

I do enjoy seeing the futures posts and how you sum up the = foreign=20 markets.  Your insight has educated me in many ways.
 
Norman Boyd
Port Lavaca (Port of the Cow), TX
theboyd@tisd.net
----- Original Message ----- =
From:=20 Tom=20 Worley
To: canslim@lists.xmission.com= =20
Sent: Thursday, April 19, = 2001 9:30=20 PM
Subject: Re: [CANSLIM] = Futures=20 volatile

Sorry David, I won't bother you with them = again. I=20 simply recognized that some members like myself were being sorely = tempted=20 to plunge in right now, just anxiously waiting for the precise = moment.=20 Since I am usually up earlier than most, and have more time to = review=20 world markets, thought it might be helpful to have a quick summary = of what=20 I had learned over the prior 3-4 hours.
 
At least I originated new emails, and used = subject lines=20 that corresponded with the content!! Wish all members would = remember to do=20 that. It's easier then to delete without reading if you don't want = them.
 
And Walter, don't worry, I am not offended by = David's=20 view. I get enough personal email already that I know some members = find=20 value in my posts.
 
David, for clarification, I am not, nor have = ever been,=20 a day trader. I have learned a lot from day traders, but would not = put=20 myself thru the stress. And since CANSLIM is also not a daytrading = system,=20 I see no value in a daytrader posting numerous buys and sells = where many=20 would not meet CANSLIM criteria, much less be of any value to = those of us=20 that read our email early in the morning or quite late at night, = but never=20 during the trading day.
 
BTW, for those members trying to bottom fish = some=20 quality big caps (remember my comment about a week ago to look for = ones=20 that bottomed early??), or if you just want to check market trends = and=20 sentiment, then watch NOK and MRK tomorrow. Both report before the = opening, and both are expected to beat estimates.
 
Tom Worley
stkguru@netside.net
 
 
----- Original Message ----- =
From:=20 David=20 Squires
To: canslim@lists.xmission.com= =20
Sent: Thursday, April 19, = 2001 8:59=20 AM
Subject: Re: [CANSLIM] = Futures=20 volatile

Tom,
 
A few weeks ago you got quite upset with = someone who=20 was posting his trades frequently suggesting you are not a day = trader.=20 How is your morning blow by blow futures and earnings posts any=20 different? I'm not trying to be difficult but if I want to know = the news=20 and futures quotes I can look at my screen just like you. =
 
DSquires
----- Original Message ----- =
From:=20 Tom=20 Worley
To: CANSLIM
Sent: Thursday, April = 19, 2001=20 6:40 AM
Subject: [CANSLIM] = Futures=20 volatile

In the past hour or so, I have watched = futures=20 decline to where the S&P500 was half a percent in the = hole, and=20 Naz futures were only up half a percent. About 15 minutes or = so ago,=20 Naz had recovered to nearly up 1%. Now I look and Naz is once = again=20 limit up (over 2%) and S&P500 up a percent.
 
Europe is still down, but looks to be = recovering=20 somewhat.
 
Should be an interesting = morning,
 
Tom Worley
stkguru@netside.net
 
 
- ------=_NextPart_000_0027_01C0C9AA.8106BE60-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Fri, 20 Apr 2001 15:13:07 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] stop loss order Hi Ann, The basic rule I was taught by WON staffers is to initially use 8% stop from your entry point. If you entered correctly, in most cases this will stop you out if the stock falls thru the base. Once you are up 15%, you begin using a trailing stop, also of 15%. The larger trailing stop is to give the stock room to move around without stopping you out, while also protecting your profit. The logic is that if it has already moved up 15%, then it can move up a lot further. As was already pointed out, there are two kinds of stops, a simple SELL STOP and a SELL STOP LIMIT. The first one becomes a market sell when triggered, guaranteeing you are done at market prices. The second when triggered becomes a Sell Limit order at the limit you set (usually a little below the Stop price). If a stock gaps down 10 points, the first will take you out far below your stop price. The latter will mean you would still own the stock and have to decide what to do. Tom Worley stkguru@netside.net - ----- Original Message ----- From: Ann Hollingworth To: CANSLIM Listserv Sent: Friday, April 20, 2001 9:41 AM Subject: [CANSLIM] stop loss order Tom, I was rereading a message you wrote on setting up trailing stop loss orders at 15% below current price (once the price is 15% above your purchase price). Why is it 15% and not 7-8%? Also, I have gotten into trouble before with stop loss orders going through way below what I put as the level. Thanks. Ann - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Fri, 20 Apr 2001 15:18:07 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Futures volatile This is a multi-part message in MIME format. - ------=_NextPart_000_00AF_01C0C9AD.1AE34100 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Don't worry, Rick, I will still do my occasional posts on "M". I am just = not posting on the futures trading in the morning. Had only intended to = do it for a few days anyway, until we got past the initial excitement / = volatility / fears of this earnings reporting cycle. Our focus should be on earnings and charts, futures do give some = guidance on market sentiment, but it is very short term. Tom Worley stkguru@netside.net ----- Original Message -----=20 From: Rick Parsons=20 To: canslim@lists.xmission.com=20 Sent: Friday, April 20, 2001 2:59 PM Subject: RE: [CANSLIM] Futures volatile Tom, I disagree. There is a "M" in Canslim. Your posts give us an = insight into the market. We cannot just focus on the leaves of Canslim. = We need to see the big picture..the trees. Rick -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley Sent: Thursday, April 19, 2001 11:11 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Futures volatile Sorry Norman, I promised. But hopefully you can learn to collect the = same information and not need me for this. Besides, David is correct, = it's hardly CANSLIM. Tom Worley stkguru@netside.net ----- Original Message -----=20 From: Norman=20 To: canslim@lists.xmission.com=20 Sent: Thursday, April 19, 2001 10:59 PM Subject: Re: [CANSLIM] Futures volatile I do enjoy seeing the futures posts and how you sum up the foreign = markets. Your insight has educated me in many ways. Norman Boyd Port Lavaca (Port of the Cow), TX theboyd@tisd.net ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Thursday, April 19, 2001 9:30 PM Subject: Re: [CANSLIM] Futures volatile Sorry David, I won't bother you with them again. I simply = recognized that some members like myself were being sorely tempted to = plunge in right now, just anxiously waiting for the precise moment. = Since I am usually up earlier than most, and have more time to review = world markets, thought it might be helpful to have a quick summary of = what I had learned over the prior 3-4 hours. At least I originated new emails, and used subject lines that = corresponded with the content!! Wish all members would remember to do = that. It's easier then to delete without reading if you don't want them. And Walter, don't worry, I am not offended by David's view. I = get enough personal email already that I know some members find value in = my posts. David, for clarification, I am not, nor have ever been, a day = trader. I have learned a lot from day traders, but would not put myself = thru the stress. And since CANSLIM is also not a daytrading system, I = see no value in a daytrader posting numerous buys and sells where many = would not meet CANSLIM criteria, much less be of any value to those of = us that read our email early in the morning or quite late at night, but = never during the trading day. BTW, for those members trying to bottom fish some quality big = caps (remember my comment about a week ago to look for ones that = bottomed early??), or if you just want to check market trends and = sentiment, then watch NOK and MRK tomorrow. Both report before the = opening, and both are expected to beat estimates. Tom Worley stkguru@netside.net ----- Original Message -----=20 From: David Squires=20 To: canslim@lists.xmission.com=20 Sent: Thursday, April 19, 2001 8:59 AM Subject: Re: [CANSLIM] Futures volatile Tom, =20 A few weeks ago you got quite upset with someone who was = posting his trades frequently suggesting you are not a day trader. How = is your morning blow by blow futures and earnings posts any different? = I'm not trying to be difficult but if I want to know the news and = futures quotes I can look at my screen just like you.=20 =20 DSquires ----- Original Message -----=20 From: Tom Worley=20 To: CANSLIM=20 Sent: Thursday, April 19, 2001 6:40 AM Subject: [CANSLIM] Futures volatile In the past hour or so, I have watched futures decline to = where the S&P500 was half a percent in the hole, and Naz futures were = only up half a percent. About 15 minutes or so ago, Naz had recovered to = nearly up 1%. Now I look and Naz is once again limit up (over 2%) and = S&P500 up a percent. Europe is still down, but looks to be recovering somewhat. Should be an interesting morning, Tom Worley stkguru@netside.net =20 - ------=_NextPart_000_00AF_01C0C9AD.1AE34100 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Don't worry, Rick, I will still do my occasional = posts on "M".=20 I am just not posting on the futures trading in the morning. Had only = intended=20 to do it for a few days anyway, until we got past the initial excitement = /=20 volatility / fears of this earnings reporting cycle.
 
Our focus should be on earnings and charts, futures = do give=20 some guidance on market sentiment, but it is very short = term.
 
Tom Worley
stkguru@netside.net
 
 
----- Original Message -----
From:=20 Rick Parsons
To: canslim@lists.xmission.com =
Sent: Friday, April 20, 2001 = 2:59=20 PM
Subject: RE: [CANSLIM] Futures=20 volatile

Tom, I disagree.  There is a "M" in = Canslim.  Your=20 posts give us an insight into the market.  We cannot just focus = on the=20 leaves of Canslim.  We need to see the big picture..the=20 trees.
 
Rick
-----Original Message-----
From: owner-canslim@lists.xmis= sion.com=20 [mailto:owner-canslim@lis= ts.xmission.com]On=20 Behalf Of Tom Worley
Sent: Thursday, April 19, 2001 = 11:11=20 PM
To: canslim@lists.xmission.com
Subject: Re: = [CANSLIM]=20 Futures volatile

Sorry Norman, I promised. But hopefully you can = learn to=20 collect the same information and not need me for this. Besides, = David is=20 correct, it's hardly CANSLIM.
 
Tom Worley
stkguru@netside.net
 
 
----- Original Message ----- =
From:=20 Norman
To: canslim@lists.xmission.com =
Sent: Thursday, April 19, = 2001 10:59=20 PM
Subject: Re: [CANSLIM] = Futures=20 volatile

I do enjoy seeing the futures posts and how you sum up the = foreign=20 markets.  Your insight has educated me in many ways.
 
Norman Boyd
Port Lavaca (Port of the Cow), TX
theboyd@tisd.net
----- Original Message ----- =
From:=20 Tom=20 Worley
To: canslim@lists.xmission.com
Sent: Thursday, April 19, = 2001 9:30=20 PM
Subject: Re: [CANSLIM] = Futures=20 volatile

Sorry David, I won't bother you with them = again. I=20 simply recognized that some members like myself were being = sorely=20 tempted to plunge in right now, just anxiously waiting for the = precise=20 moment. Since I am usually up earlier than most, and have more = time to=20 review world markets, thought it might be helpful to have a = quick=20 summary of what I had learned over the prior 3-4 = hours.
 
At least I originated new emails, and used = subject=20 lines that corresponded with the content!! Wish all members = would=20 remember to do that. It's easier then to delete without reading = if you=20 don't want them.
 
And Walter, don't worry, I am not offended = by David's=20 view. I get enough personal email already that I know some = members find=20 value in my posts.
 
David, for clarification, I am not, nor have = ever=20 been, a day trader. I have learned a lot from day traders, but = would not=20 put myself thru the stress. And since CANSLIM is also not a = daytrading=20 system, I see no value in a daytrader posting numerous buys and = sells=20 where many would not meet CANSLIM criteria, much less be of any = value to=20 those of us that read our email early in the morning or quite = late at=20 night, but never during the trading day.
 
BTW, for those members trying to bottom fish = some=20 quality big caps (remember my comment about a week ago to look = for ones=20 that bottomed early??), or if you just want to check market = trends and=20 sentiment, then watch NOK and MRK tomorrow. Both report before = the=20 opening, and both are expected to beat estimates.
 
Tom Worley
stkguru@netside.net
 
 
----- Original Message ----- =
From:=20 David=20 Squires
To: canslim@lists.xmission.com
Sent: Thursday, April = 19, 2001=20 8:59 AM
Subject: Re: [CANSLIM] = Futures=20 volatile

Tom,
 
A few weeks ago you got quite upset with = someone who=20 was posting his trades frequently suggesting you are not a day = trader.=20 How is your morning blow by blow futures and earnings posts = any=20 different? I'm not trying to be difficult but if I want to = know the=20 news and futures quotes I can look at my screen just like you. =
 
DSquires
----- Original Message ----- =
From:=20 Tom=20 Worley
To: CANSLIM
Sent: Thursday, April = 19, 2001=20 6:40 AM
Subject: [CANSLIM] = Futures=20 volatile

In the past hour or so, I have watched = futures=20 decline to where the S&P500 was half a percent in the = hole, and=20 Naz futures were only up half a percent. About 15 minutes or = so ago,=20 Naz had recovered to nearly up 1%. Now I look and Naz is = once again=20 limit up (over 2%) and S&P500 up a percent.
 
Europe is still down, but looks to be = recovering=20 somewhat.
 
Should be an interesting = morning,
 
Tom Worley
stkguru@netside.net
 
 
- ------=_NextPart_000_00AF_01C0C9AD.1AE34100-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Fri, 20 Apr 2001 16:46:50 -0400 From: "Ann Hollingworth" Subject: RE: [CANSLIM] stop loss order Rick, Tom, Kent, Thanks for feedback. At Fidelity, the Stop Order is called "Stop Loss" Order. So the market price must have jumped in my case. But why would someone use a Stop Limit order? with A Stop (LOss) order, you can miss the price. But with a Stop Limit Order, you can miss the whole sale!! Sorry to be dense about this. Ann - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Rick Parsons Sent: Friday, April 20, 2001 9:55 AM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] stop loss order "I have gotten into trouble before with stop loss orders going through way below what I put as the level." Ann, not quite sure what you mean by that statement. But make sure you are not using a STOP LIMIT ORDER. Rick - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Fri, 20 Apr 2001 16:53:48 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] stop loss order Ann, you are correct, with a stop limit, you can still be holding the stock. But with a simple stop (or stop loss), you can sell at the low of the day on an opening gap down, only to have the stock recover that day, or following days. It's a matter of personal choice: if a stock trades at or below a certain price, do you want out of it at any price (including one much lower even), or do you only want out of it at a given price? Tom Worley stkguru@netside.net - ----- Original Message ----- From: Ann Hollingworth To: Sent: Friday, April 20, 2001 4:46 PM Subject: RE: [CANSLIM] stop loss order Rick, Tom, Kent, Thanks for feedback. At Fidelity, the Stop Order is called "Stop Loss" Order. So the market price must have jumped in my case. But why would someone use a Stop Limit order? with A Stop (LOss) order, you can miss the price. But with a Stop Limit Order, you can miss the whole sale!! Sorry to be dense about this. Ann - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Rick Parsons Sent: Friday, April 20, 2001 9:55 AM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] stop loss order "I have gotten into trouble before with stop loss orders going through way below what I put as the level." Ann, not quite sure what you mean by that statement. But make sure you are not using a STOP LIMIT ORDER. Rick - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Fri, 20 Apr 2001 14:58:48 -0600 From: esetser Subject: Re: [CANSLIM] PECS First of all, E, yech, so it fails "L". But ignoring that... DGO shows the last four quarters of earnings growth starting with the most recent as - -13%, +13%, 0, +50%. I would say it fails "C" based on that. Another concern is the size of the stock. It is only trading 16,000 shares a day, seems that volume is contracting, and it actually has 4 days since 3/1 where it traded 1200 shares or less in a full day!! This is WAY too thin for me. I have been using ADV of $500K (this is at about $200K), but given my experience with a couple of stocks, maybe I should be 5-10X higher to give a good market. I do agree that the cup w handle looks great, although the handle volume appears to be higher than recent volume anyway. Given a different setup, I would LOVE the chart. So, let me know when you find a larger stock in a good group with better earnings, and a chart JUST like this one!! At 11:55 PM 4/19/01 -0500, you wrote: > Looking for opinions on PECS (80 96 E B B) Things I like: ~40% earnings and sales growth pretty decent cup w/handle 83% insider ownership 12% institutional ownership held up well over past year despite group Things that concern me: ADV of 18K GRS E wedging to pivot Any comments appreciated. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Fri, 20 Apr 2001 15:14:31 -0600 From: esetser Subject: Re: [CANSLIM] stop loss order I'm not Tom, but..... :) The 7-8% rule in CANSLIM has been chosen to limit you losses on bad trades period. WON is very careful in most of his writings to note that this number applies ONLY to the original purchase price. Most strong growth stocks will have significant corrections during any long run. Corrections of 12-15% or so are VERY common and corrections as much as 25% or so are not uncommon. This would be true to stocks like CSCO, MSFT, INTC, etc over the last few years. In order to increase your timespan and your potential to hold this kind of long term winner, it is important that you give the stock a chance for normal corrections during it's run up. Many on this group and elsewhere feel 15% is a good compromise between giving a stock room to run, and locking in a portion of your gains as you go. I tend to agree, although I haven't generally used hard stops set far above my purchase price. As far as hard stops and execution prices, that is a totally different subject. There is no way to guaranatee getting out of a stock at the best price except watching it anytime the market is open. IMHO, the market tends of over-react to news in both directions, and the movements can be so fast that your stop turns to a market after the market is quite a bit lower. I cancelled my stop on CPRT this week after it moved down strongly on Tuesday (I think). It was within about 5 cents or so of my stop, and I figured it was likely to open up below my stop. Since it is a little thin on the volume side, I was concerned it would plummet with only a few market sell orders and COULD (not would) come screaming back up with very few buyers once the sell orders were cleared out. Sure enough the stock moved from the previous close of 21.76 to 20.96 (-3.6%) in just a few trades. For the next couple of hours, almost a good percentage of the trades were executed at the ask or close, and the stock ticked upward like clockwork. By the end of the day, it closed at 23.25, up 1.51 for the day, but more importantly, up almost 11% from where one poor sucker sold out. I have also had stocks that plummeted down and never looked back, so don't think there will always be another chance. Sometimes yes, sometimes no. There is one other alternative, and that is using a Stop Limit. In that case, the stop turns to a limit order and will not execute if the stock moves lower quickly. This gives you a chance to look at what happened and decide whether to sell immediately or risk waiting it out a bit. I'm not sure if this pays off in the long run or not. I believe WON recommends watching the market and selling the minute the stock hits your mental stop, but never using hard stops. He disucsses how sometimes the stock will just tick you out if you use hard stops, but I'm not sure how his approach is any different if he ALWAYS sells IMMEDIATELY! Sorry for the long answer, but these are difficult questions at best. At 09:41 AM 4/20/01 -0400, you wrote: >Tom, I was rereading a message you wrote on setting up trailing stop loss >orders at 15% below current price (once the price is 15% above your purchase >price). Why is it 15% and not 7-8%? > >Also, I have gotten into trouble before with stop loss orders going through >way below what I put as the level. > >Thanks. > >Ann > > >- >-To subscribe/unsubscribe, email "majordomo@xmission.com" >-In the email body, write "subscribe canslim" or >-"unsubscribe canslim". Do not use quotes in your email. > > - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ End of canslim-digest V2 #1298 ****************************** To unsubscribe to canslim-digest, send an email to "majordomo@xmission.com" with "unsubscribe canslim-digest" in the body of the message. For information on digests or retrieving files and old messages send "help" to the same address. Do not use quotes in your message.