From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2291 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 Wednesday, April 10 2002 Volume 02 : Number 2291 In this issue: Re: [CANSLIM] NVR RE: [CANSLIM] NVR Re: [CANSLIM] NVR ---------------------------------------------------------------------- Date: Wed, 10 Apr 2002 18:11:42 -0500 From: "Katherine Malm" Subject: Re: [CANSLIM] NVR This is a multi-part message in MIME format. - ------=_NextPart_000_010C_01C1E0BB.2AEA7840 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Mike, I'm not sure how you got 3%.... Most trailing stops are set about 0.10 = below the recent congestion. Either way, you're already sacrificing the = 0.10 to set the stop and so its a sunk cost. In my example, a stop $0 = .10 below congestion would be set at 24.42. I set it at 24.37. That's = $0.05 or 0.2% more than a $0.10 stop on the same stock. If I were = trading billions, I'd worry about it. I don't use stops as a trading = technique on long positions, I use them as catastrophic insurance. = Profits on long positions I take on my own with mental stops and will be = out long before a stop is hit if other price/volume indicators trigger a = sell. I think as an intermediate term trader that is the best route, as = you want to give a stock room to breathe as it makes its advance. Also, = stops get hit in intraday swings. As an intermediate term player, the = close is what's important. Katherine ----- Original Message -----=20 From: Mike Gibbons=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, April 10, 2002 5:52 PM Subject: RE: [CANSLIM] NVR Hi Katherine, I understand staying away from round numbers, but I'm wondering why = you choose another 0.13 below. That could put your stop at up to (0.49 + = 0.13 =3D 0.62) which seems to give a lot of room for further losses. On = a $20 stock that would be an additional 3%. But I'm sure you have a sound reason, so I'm wondering if you'd = explain. Aloha, Mike Gibbons Proactive Technologies, LLC http://www.proactech.com -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm Sent: Wednesday, April 10, 2002 12:41 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] NVR Hi Bill, I think everybody is different when it comes to setting their = stop...I go $0.13 below the closest $.50 mark just to stay out of round = numbers. So if the bottom of congestion were $24.52, I'd set a stop at = $24.50 - 0.13 =3D $24.37. That odd number has saved me from getting = caught in a quick sweep plenty of times. Katherine ----- Original Message -----=20 From: William King=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, April 10, 2002 5:25 PM Subject: Re: [CANSLIM] NVR Katherine, Thanks for the trailing stop info. Not knowing any better I have = been in the arbitrary 8% camp unless there is obvious support in that = area. When they say "below" a given area - how far below? .10, .50 ?? ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, April 09, 2002 11:26 PM Subject: Re: [CANSLIM] NVR Dimitri, There are many ways to set a trailing stop. Some use trend = lines, some use a recent area of consolidation, some use the volatility = of the stock, some use moving averages. The one thing you do *not* want = to do is choose an arbitrary number such as 8% as a trailing stop. You = run the risk of being stopped out of a stock that is experiencing a = "normal" pullback in its uptrend. I've uploaded an article on trailing = stops written by Mark Boucher to the CANSIM site. You'll find it at: http://WallStreet-LLC.com/pub/TrailingStops.doc Use a wise approach to setting your stop and you will be more = likely to find that delicate balance between protecting profits, riding = a good stock as long as possible and protecting against catastrophic = loss. Katherine ----- Original Message -----=20 From: Dimitri Katsaros=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, April 09, 2002 5:29 PM Subject: [CANSLIM] NVR Thank you all for the advice on NVR... after hearing all that has been said and looking at the chart, I'm going to take Katherine Malm's advice by putting a trailing stop. Should I do it at 8% or perhaps larger to weather out any volatility? Thanks Dimitri =3D=3D=3D=3D=3D Quiquid latine dictum sit altum viditur __________________________________________________ Do You Yahoo!? Yahoo! Tax Center - online filing with TurboTax http://taxes.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_010C_01C1E0BB.2AEA7840 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Hi Mike,
 
I'm not sure how you got 3%.... Most trailing stops are set about = 0.10=20 below the recent congestion. Either way, you're already sacrificing the = 0.10 to=20 set the stop and so its a sunk cost. In my example, a stop $0 .10 below=20 congestion would be set at 24.42. I set it at 24.37. That's $0.05 or = 0.2% more=20 than a $0.10 stop on the same stock. If I were trading billions, I'd = worry about=20 it. I don't use stops as a trading technique on long positions, I use = them as=20 catastrophic insurance. Profits on long positions I take on my own with = mental=20 stops and will be out long before a stop is hit if other price/volume = indicators=20 trigger a sell. I think as an intermediate term trader that is the best = route,=20 as you want to give a stock room to breathe as it makes its advance. = Also, stops=20 get hit in intraday swings. As an intermediate term player, the close is = what's=20 important.
 
Katherine
----- Original Message -----
From:=20 Mike Gibbons
To: canslim@lists.xmission.com=
Sent: Wednesday, April 10, 2002 = 5:52=20 PM
Subject: RE: [CANSLIM] = NVR

Hi=20 Katherine,
 
I=20 understand staying away from round numbers, but I'm wondering why you = choose=20 another 0.13 below. That could put your stop at up to (0.49 + 0.13 =3D = 0.62)=20 which seems to give a lot of room for further losses. On a $20 stock = that=20 would be an additional 3%.
 
But=20 I'm sure you have a sound reason, so I'm wondering if you'd=20 explain.
 
Aloha,
 
Mike Gibbons
Proactive = Technologies,=20 LLC
http://www.proactech.com
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of = Katherine=20 Malm
Sent: Wednesday, April 10, 2002 12:41 = PM
To:=20 canslim@lists.xmission.com
Subject: Re: [CANSLIM]=20 NVR

Hi Bill,
 
I think everybody is different when it comes to setting their = stop...I=20 go $0.13 below the closest $.50 mark just to stay out of round = numbers.=20 So if the bottom of congestion were $24.52, I'd set a stop at $24.50 = - - 0.13=20 =3D $24.37. That odd number has saved me from getting caught in a = quick sweep=20 plenty of times.
 
Katherine
----- Original Message ----- =
From:=20 William=20 King
To: canslim@lists.xmission.com= =20
Sent: Wednesday, April 10, = 2002 5:25=20 PM
Subject: Re: [CANSLIM] = NVR

Katherine,
Thanks for the trailing stop = info. Not=20 knowing any better I have been in the arbitrary 8% camp = unless there=20 is obvious support in that area. When they say "below" a given = area - how=20 far below? .10, .50  ??
----- Original Message -----
From:=20 Katherine=20 Malm
To: canslim@lists.xmission.com= =20
Sent: Tuesday, April 09, = 2002 11:26=20 PM
Subject: Re: [CANSLIM] = NVR

Dimitri,
 
There are many ways to set a trailing stop. Some use trend = lines,=20 some use a recent area of consolidation, some use the volatility = of the=20 stock, some use moving averages. The one thing you do *not* want = to do=20 is choose an arbitrary number such as 8% as a trailing stop. You = run the=20 risk of being stopped out of a stock that is experiencing a = "normal"=20 pullback in its uptrend. I've uploaded an article on trailing = stops=20 written by Mark Boucher to the CANSIM site. You'll find it = at:
 
 http://WallStree= t-LLC.com/pub/TrailingStops.doc
Use a wise approach to setting your stop and you will = be more=20 likely to find that delicate balance between protecting profits, = riding=20 a good stock as long as possible and protecting against = catastrophic=20 loss.
 
Katherine
----- Original Message ----- =
From:=20 Dimitri=20 Katsaros
To: canslim@lists.xmission.com= =20
Sent: Tuesday, April = 09, 2002=20 5:29 PM
Subject: [CANSLIM] = NVR

Thank you all for the advice on NVR... after=20 hearing
all that has been said and looking at the chart,=20 I'm
going to take Katherine Malm's advice by putting = a
trailing=20 stop. Should I do it at 8% or perhaps larger
to weather out = any=20 = volatility?

Thanks
Dimitri

=3D=3D=3D=3D=3D
Quiquid = latine=20 dictum sit altum=20 = viditur

__________________________________________________
Do=20 You Yahoo!?
Yahoo! Tax Center - online filing with = TurboTax
http://taxes.yahoo.com/

-
= - -To=20 subscribe/unsubscribe, email "majordomo@xmission.com"
-In= =20 the email body, write "subscribe canslim" or
-"unsubscribe=20 canslim".  Do not use quotes in your=20 = email.
- ------=_NextPart_000_010C_01C1E0BB.2AEA7840-- - - - -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: Wed, 10 Apr 2002 14:17:38 -1000 From: "Mike Gibbons" Subject: RE: [CANSLIM] NVR This is a multi-part message in MIME format. - ------=_NextPart_000_0023_01C1E09A.77DDE220 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: 7bit Hi Katherine, I hope I'm not flogging a dead horse here... Perhaps my interpretation of your comment was incorrect or my math is fuzzy :-) . You said "I go $0.13 below the closest $.50 mark ...". By closest I assumed you meant the closest $.50 below the congestion (I'm not familiar with that term, but I presume you mean the support level). So if the congestion was at $24.99 then you would put the stop at $24.50 - $0.13 = $24.37. That is $0.62 below the support level, or in this case 2.5%. I don't mean to be nit-picking - just a techie trying to understand. Aloha, Mike Gibbons Proactive Technologies, LLC http://www.proactech.com -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm Sent: Wednesday, April 10, 2002 1:12 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] NVR Hi Mike, I'm not sure how you got 3%.... Most trailing stops are set about 0.10 below the recent congestion. Either way, you're already sacrificing the 0.10 to set the stop and so its a sunk cost. In my example, a stop $0 .10 below congestion would be set at 24.42. I set it at 24.37. That's $0.05 or 0.2% more than a $0.10 stop on the same stock. If I were trading billions, I'd worry about it. I don't use stops as a trading technique on long positions, I use them as catastrophic insurance. Profits on long positions I take on my own with mental stops and will be out long before a stop is hit if other price/volume indicators trigger a sell. I think as an intermediate term trader that is the best route, as you want to give a stock room to breathe as it makes its advance. Also, stops get hit in intraday swings. As an intermediate term player, the close is what's important. Katherine ----- Original Message ----- From: Mike Gibbons To: canslim@lists.xmission.com Sent: Wednesday, April 10, 2002 5:52 PM Subject: RE: [CANSLIM] NVR Hi Katherine, I understand staying away from round numbers, but I'm wondering why you choose another 0.13 below. That could put your stop at up to (0.49 + 0.13 = 0.62) which seems to give a lot of room for further losses. On a $20 stock that would be an additional 3%. But I'm sure you have a sound reason, so I'm wondering if you'd explain. Aloha, Mike Gibbons Proactive Technologies, LLC http://www.proactech.com -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm Sent: Wednesday, April 10, 2002 12:41 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] NVR Hi Bill, I think everybody is different when it comes to setting their stop...I go $0.13 below the closest $.50 mark just to stay out of round numbers. So if the bottom of congestion were $24.52, I'd set a stop at $24.50 - 0.13 = $24.37. That odd number has saved me from getting caught in a quick sweep plenty of times. Katherine ----- Original Message ----- From: William King To: canslim@lists.xmission.com Sent: Wednesday, April 10, 2002 5:25 PM Subject: Re: [CANSLIM] NVR Katherine, Thanks for the trailing stop info. Not knowing any better I have been in the arbitrary 8% camp unless there is obvious support in that area. When they say "below" a given area - how far below? .10, .50 ?? ----- Original Message ----- From: Katherine Malm To: canslim@lists.xmission.com Sent: Tuesday, April 09, 2002 11:26 PM Subject: Re: [CANSLIM] NVR Dimitri, There are many ways to set a trailing stop. Some use trend lines, some use a recent area of consolidation, some use the volatility of the stock, some use moving averages. The one thing you do *not* want to do is choose an arbitrary number such as 8% as a trailing stop. You run the risk of being stopped out of a stock that is experiencing a "normal" pullback in its uptrend. I've uploaded an article on trailing stops written by Mark Boucher to the CANSIM site. You'll find it at: http://WallStreet-LLC.com/pub/TrailingStops.doc Use a wise approach to setting your stop and you will be more likely to find that delicate balance between protecting profits, riding a good stock as long as possible and protecting against catastrophic loss. Katherine ----- Original Message ----- From: Dimitri Katsaros To: canslim@lists.xmission.com Sent: Tuesday, April 09, 2002 5:29 PM Subject: [CANSLIM] NVR Thank you all for the advice on NVR... after hearing all that has been said and looking at the chart, I'm going to take Katherine Malm's advice by putting a trailing stop. Should I do it at 8% or perhaps larger to weather out any volatility? Thanks Dimitri ===== Quiquid latine dictum sit altum viditur __________________________________________________ Do You Yahoo!? Yahoo! Tax Center - online filing with TurboTax http://taxes.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_0023_01C1E09A.77DDE220 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Hi=20 Katherine,
 
I hope=20 I'm not flogging a dead horse here... Perhaps my interpretation of your = comment=20 was incorrect or my math is fuzzy :-) . You said "I go $0.13 below the=20 closest $.50 mark ...". By closest I assumed you meant the closest = $.50=20 below the congestion (I'm not familiar with that term, but I presume you = mean=20 the support level). So if the congestion was at $24.99 then you would = put the=20 stop at $24.50 - $0.13 =3D $24.37. That is $0.62 below the support = level, or in=20 this case 2.5%.
 
I=20 don't mean to be nit-picking - just a techie trying to understand.=20
 
Aloha,
 
Mike Gibbons
Proactive Technologies, = LLC
http://www.proactech.com
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine = Malm
Sent: Wednesday, April 10, 2002 1:12 PM
To:=20 canslim@lists.xmission.com
Subject: Re: [CANSLIM]=20 NVR

Hi Mike,
 
I'm not sure how you got 3%.... Most trailing stops are set about = 0.10=20 below the recent congestion. Either way, you're already sacrificing = the 0.10=20 to set the stop and so its a sunk cost. In my example, a stop $0 .10 = below=20 congestion would be set at 24.42. I set it at 24.37. That's $0.05 or = 0.2% more=20 than a $0.10 stop on the same stock. If I were trading billions, I'd = worry=20 about it. I don't use stops as a trading technique on long positions, = I use=20 them as catastrophic insurance. Profits on long positions I take on my = own=20 with mental stops and will be out long before a stop is hit if other=20 price/volume indicators trigger a sell. I think as an intermediate = term trader=20 that is the best route, as you want to give a stock room to breathe as = it=20 makes its advance. Also, stops get hit in intraday swings. As an = intermediate=20 term player, the close is what's important.
 
Katherine
----- Original Message -----
From:=20 Mike Gibbons
To: canslim@lists.xmission.com =
Sent: Wednesday, April 10, = 2002 5:52=20 PM
Subject: RE: [CANSLIM] = NVR

Hi=20 Katherine,
 
I=20 understand staying away from round numbers, but I'm wondering why = you choose=20 another 0.13 below. That could put your stop at up to (0.49 + 0.13 = =3D 0.62)=20 which seems to give a lot of room for further losses. On a $20 stock = that=20 would be an additional 3%.
 
But I'm sure you have a sound reason, so = I'm=20 wondering if you'd explain.
 
Aloha,
 
Mike Gibbons
Proactive = Technologies,=20 LLC
http://www.proactech.com
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of = Katherine=20 Malm
Sent: Wednesday, April 10, 2002 12:41 = PM
To:=20 canslim@lists.xmission.com
Subject: Re: [CANSLIM]=20 NVR

Hi Bill,
 
I think everybody is different when it comes to setting their = stop...I go $0.13 below the closest $.50 mark just to stay = out of=20 round numbers. So if the bottom of congestion were $24.52, I'd set = a stop=20 at $24.50 - 0.13 =3D $24.37. That odd number has saved me from = getting=20 caught in a quick sweep plenty of times.
 
Katherine
----- Original Message ----- =
From:=20 William=20 King
To: canslim@lists.xmission.com
Sent: Wednesday, April = 10, 2002=20 5:25 PM
Subject: Re: [CANSLIM] = NVR

Katherine,
Thanks for the trailing stop = info. Not=20 knowing any better I have been in the arbitrary 8% camp = unless=20 there is obvious support in that area. When they say "below" a = given=20 area - how far below? .10, .50  ??
----- Original Message -----
From:=20 Katherine Malm
To: canslim@lists.xmission.com
Sent: Tuesday, April = 09, 2002=20 11:26 PM
Subject: Re: [CANSLIM] = NVR

Dimitri,
 
There are many ways to set a trailing stop. Some use = trend lines,=20 some use a recent area of consolidation, some use the = volatility of=20 the stock, some use moving averages. The one thing you do = *not* want=20 to do is choose an arbitrary number such as 8% as a trailing = stop. You=20 run the risk of being stopped out of a stock that is = experiencing a=20 "normal" pullback in its uptrend. I've uploaded an article on = trailing=20 stops written by Mark Boucher to the CANSIM site. You'll find = it=20 at:
 
 http://WallStree= t-LLC.com/pub/TrailingStops.doc
Use a wise approach to setting your stop and you = will be=20 more likely to find that delicate balance between protecting = profits,=20 riding a good stock as long as possible and protecting against = catastrophic loss.
 
Katherine
----- Original Message ----- =
From:=20 Dimitri=20 Katsaros
To: canslim@lists.xmission.com=20
Sent: Tuesday, April = 09, 2002=20 5:29 PM
Subject: [CANSLIM] = NVR

Thank you all for the advice on NVR... after=20 hearing
all that has been said and looking at the chart,=20 I'm
going to take Katherine Malm's advice by putting=20 a
trailing stop. Should I do it at 8% or perhaps = larger
to=20 weather out any=20 = volatility?

Thanks
Dimitri

=3D=3D=3D=3D=3D
Quiquid = latine=20 dictum sit altum=20 = viditur

__________________________________________________
Do=20 You Yahoo!?
Yahoo! Tax Center - online filing with = TurboTax
http://taxes.yahoo.com/

-
= - -To=20 subscribe/unsubscribe, email "majordomo@xmission.com"
-In= =20 the email body, write "subscribe canslim" = or
-"unsubscribe=20 canslim".  Do not use quotes in your=20 = email.
- ------=_NextPart_000_0023_01C1E09A.77DDE220-- - - - -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: Wed, 10 Apr 2002 19:54:23 -0500 From: "Katherine Malm" Subject: Re: [CANSLIM] NVR This is a multi-part message in MIME format. - ------=_NextPart_000_0128_01C1E0C9.82FC36A0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Mike, You've changed my example from the numbers I was using. Let me go with = your example. If the stock is $24.99, then the closest .50 mark is = $25.00. I suppose I should have said "round to the nearest .50". That = means the stop would be set at $25.00-0.13 =3D 24.87. The whole idea of setting the stop below congestion in the first place = is to stay out of the way if the stock simply moves into congestion = again. Again, the stop would be set 0.10 below congestion if you're = using a more standard interpretation. That means "standard" would be set = at $24.89. My stop is set at $24.87. Only 2 cents difference on 24.99 = congestion. You can't count the 0.10 as "cost" because its sunk under = either rule of thumb. My "price" for sticking to odd numbers is = 0.02/24.99 =3D 0.0008, or 0.08%.=20 In my original example my "price" is the difference between the = "standard" and the "odd rule" and is 0.02% not 3% as you originally = suggested. Throw away all the math for a moment...the point is that you pay a price = for setting a stop in either case if you don't get out on your own ahead = of the stop. When you set a stop, you are *choosing* an exit point and = then letting someone else execute it. In either case, you don't = necessarily exit at the stop price because fast trade will often drop = the price below your stop before execution. That's why I prefer to use = mental stops + sound discipline and exit when I wish to do so. Of = course, that requires maintaining focus as well, something I've been = known to screw up on every now and again. In that case, I chalk it up to = tuition. Katherine ----- Original Message -----=20 From: Mike Gibbons=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, April 10, 2002 7:17 PM Subject: RE: [CANSLIM] NVR Hi Katherine, I hope I'm not flogging a dead horse here... Perhaps my interpretation = of your comment was incorrect or my math is fuzzy :-) . You said "I go = $0.13 below the closest $.50 mark ...". By closest I assumed you meant = the closest $.50 below the congestion (I'm not familiar with that term, = but I presume you mean the support level). So if the congestion was at = $24.99 then you would put the stop at $24.50 - $0.13 =3D $24.37. That is = $0.62 below the support level, or in this case 2.5%. I don't mean to be nit-picking - just a techie trying to understand.=20 Aloha, Mike Gibbons Proactive Technologies, LLC http://www.proactech.com -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm Sent: Wednesday, April 10, 2002 1:12 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] NVR Hi Mike, I'm not sure how you got 3%.... Most trailing stops are set about = 0.10 below the recent congestion. Either way, you're already sacrificing = the 0.10 to set the stop and so its a sunk cost. In my example, a stop = $0 .10 below congestion would be set at 24.42. I set it at 24.37. That's = $0.05 or 0.2% more than a $0.10 stop on the same stock. If I were = trading billions, I'd worry about it. I don't use stops as a trading = technique on long positions, I use them as catastrophic insurance. = Profits on long positions I take on my own with mental stops and will be = out long before a stop is hit if other price/volume indicators trigger a = sell. I think as an intermediate term trader that is the best route, as = you want to give a stock room to breathe as it makes its advance. Also, = stops get hit in intraday swings. As an intermediate term player, the = close is what's important. Katherine ----- Original Message -----=20 From: Mike Gibbons=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, April 10, 2002 5:52 PM Subject: RE: [CANSLIM] NVR Hi Katherine, I understand staying away from round numbers, but I'm wondering = why you choose another 0.13 below. That could put your stop at up to = (0.49 + 0.13 =3D 0.62) which seems to give a lot of room for further = losses. On a $20 stock that would be an additional 3%. But I'm sure you have a sound reason, so I'm wondering if you'd = explain. Aloha, Mike Gibbons Proactive Technologies, LLC http://www.proactech.com -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm Sent: Wednesday, April 10, 2002 12:41 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] NVR Hi Bill, I think everybody is different when it comes to setting their = stop...I go $0.13 below the closest $.50 mark just to stay out of round = numbers. So if the bottom of congestion were $24.52, I'd set a stop at = $24.50 - 0.13 =3D $24.37. That odd number has saved me from getting = caught in a quick sweep plenty of times. Katherine ----- Original Message -----=20 From: William King=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, April 10, 2002 5:25 PM Subject: Re: [CANSLIM] NVR Katherine, Thanks for the trailing stop info. Not knowing any better I = have been in the arbitrary 8% camp unless there is obvious support in = that area. When they say "below" a given area - how far below? .10, .50 = ?? ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, April 09, 2002 11:26 PM Subject: Re: [CANSLIM] NVR Dimitri, There are many ways to set a trailing stop. Some use trend = lines, some use a recent area of consolidation, some use the volatility = of the stock, some use moving averages. The one thing you do *not* want = to do is choose an arbitrary number such as 8% as a trailing stop. You = run the risk of being stopped out of a stock that is experiencing a = "normal" pullback in its uptrend. I've uploaded an article on trailing = stops written by Mark Boucher to the CANSIM site. You'll find it at: http://WallStreet-LLC.com/pub/TrailingStops.doc Use a wise approach to setting your stop and you will be = more likely to find that delicate balance between protecting profits, = riding a good stock as long as possible and protecting against = catastrophic loss. Katherine ----- Original Message -----=20 From: Dimitri Katsaros=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, April 09, 2002 5:29 PM Subject: [CANSLIM] NVR Thank you all for the advice on NVR... after hearing all that has been said and looking at the chart, I'm going to take Katherine Malm's advice by putting a trailing stop. Should I do it at 8% or perhaps larger to weather out any volatility? Thanks Dimitri =3D=3D=3D=3D=3D Quiquid latine dictum sit altum viditur __________________________________________________ Do You Yahoo!? Yahoo! Tax Center - online filing with TurboTax http://taxes.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_0128_01C1E0C9.82FC36A0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Mike,
 
You've changed my example from the numbers I was using. Let me go = with your=20 example. If the stock is $24.99, then the closest .50 mark is $25.00. I = suppose=20 I should have said "round to the nearest .50". That means the stop would = be set=20 at $25.00-0.13 =3D 24.87.
 
The whole idea of setting the stop below congestion in the first = place is=20 to stay out of the way if the stock simply moves into congestion again. = Again,=20 the stop would be set 0.10 below congestion if you're using a more = standard=20 interpretation. That means "standard" would be set at $24.89. My stop is = set at=20 $24.87. Only 2 cents difference on 24.99 congestion. You can't count the = 0.10 as=20 "cost" because its sunk under either rule of thumb. My "price" for = sticking to=20 odd numbers is 0.02/24.99 =3D 0.0008, or 0.08%.
 
In my original example my "price" is the difference between the = "standard"=20 and the "odd rule" and is 0.02% not 3% as you originally = suggested.
 
Throw away all the math for a moment...the point is that you pay a = price=20 for setting a stop in either case if you don't get out on your own ahead = of the=20 stop. When you set a stop, you are *choosing* an exit point and then = letting=20 someone else execute it. In either case, you don't necessarily exit at = the stop=20 price because fast trade will often drop the price below your stop = before=20 execution. That's why I prefer to use mental stops + sound discipline = and exit=20 when I wish to do so. Of course, that requires maintaining focus as = well,=20 something I've been known to screw up on every now and again. In that = case, I=20 chalk it up to tuition.
 
Katherine
----- Original Message -----
From:=20 Mike Gibbons
Sent: Wednesday, April 10, 2002 = 7:17=20 PM
Subject: RE: [CANSLIM] = NVR

Hi=20 Katherine,
 
I=20 hope I'm not flogging a dead horse here... Perhaps my interpretation = of your=20 comment was incorrect or my math is fuzzy :-) . You said "I go $0.13 = below the=20 closest $.50 mark ...". By closest I assumed you meant the = closest $.50=20 below the congestion (I'm not familiar with that term, but I presume = you mean=20 the support level). So if the congestion was at $24.99 then you would = put the=20 stop at $24.50 - $0.13 =3D $24.37. That is $0.62 below the support = level, or in=20 this case 2.5%.
 
I=20 don't mean to be nit-picking - just a techie trying to understand.=20
 
Aloha,
 
Mike Gibbons
Proactive = Technologies,=20 LLC
http://www.proactech.com
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of = Katherine=20 Malm
Sent: Wednesday, April 10, 2002 1:12 PM
To: = canslim@lists.xmission.com
Subject: Re: [CANSLIM]=20 NVR

Hi Mike,
 
I'm not sure how you got 3%.... Most trailing stops are set = about 0.10=20 below the recent congestion. Either way, you're already sacrificing = the 0.10=20 to set the stop and so its a sunk cost. In my example, a stop $0 .10 = below=20 congestion would be set at 24.42. I set it at 24.37. That's $0.05 or = 0.2%=20 more than a $0.10 stop on the same stock. If I were trading = billions, I'd=20 worry about it. I don't use stops as a trading technique on long = positions,=20 I use them as catastrophic insurance. Profits on long positions I = take on my=20 own with mental stops and will be out long before a stop is hit if = other=20 price/volume indicators trigger a sell. I think as an intermediate = term=20 trader that is the best route, as you want to give a stock room to = breathe=20 as it makes its advance. Also, stops get hit in intraday swings. As = an=20 intermediate term player, the close is what's important.
 
Katherine
----- Original Message ----- =
From:=20 Mike Gibbons
To: canslim@lists.xmission.com= =20
Sent: Wednesday, April 10, = 2002 5:52=20 PM
Subject: RE: [CANSLIM] = NVR

Hi Katherine,
 
I understand staying away from round = numbers, but=20 I'm wondering why you choose another 0.13 below. That could put = your stop=20 at up to (0.49 + 0.13 =3D 0.62) which seems to give a lot of room = for=20 further losses. On a $20 stock that would be an additional=20 3%.
 
But I'm sure you have a sound reason, = so I'm=20 wondering if you'd explain.
 
Aloha,
 
Mike Gibbons
Proactive = Technologies,=20 LLC
http://www.proactech.com
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of = Katherine=20 Malm
Sent: Wednesday, April 10, 2002 12:41 = PM
To:=20 canslim@lists.xmission.com
Subject: Re: [CANSLIM]=20 NVR

Hi Bill,
 
I think everybody is different when it comes to setting = their=20 stop...I go $0.13 below the closest $.50 mark just to stay = out of=20 round numbers. So if the bottom of congestion were $24.52, I'd = set a=20 stop at $24.50 - 0.13 =3D $24.37. That odd number has saved me = from=20 getting caught in a quick sweep plenty of times.
 
Katherine
----- Original Message ----- =
From:=20 William=20 King
To: canslim@lists.xmission.com= =20
Sent: Wednesday, April = 10, 2002=20 5:25 PM
Subject: Re: [CANSLIM] = NVR

Katherine,
Thanks for the trailing stop = info. Not=20 knowing any better I have been in the arbitrary 8% camp = unless=20 there is obvious support in that area. When they say "below" a = given=20 area - how far below? .10, .50  ??
----- Original Message -----
From:=20 Katherine Malm =
To: canslim@lists.xmission.com= =20
Sent: Tuesday, April = 09, 2002=20 11:26 PM
Subject: Re: = [CANSLIM]=20 NVR

Dimitri,
 
There are many ways to set a trailing stop. Some use = trend=20 lines, some use a recent area of consolidation, some use the = volatility of the stock, some use moving averages. The one = thing you=20 do *not* want to do is choose an arbitrary number such as 8% = as a=20 trailing stop. You run the risk of being stopped out of a = stock that=20 is experiencing a "normal" pullback in its uptrend. I've = uploaded an=20 article on trailing stops written by Mark Boucher to the = CANSIM=20 site. You'll find it at:
 
 http://WallStree= t-LLC.com/pub/TrailingStops.doc
Use a wise approach to setting your stop and you = will be=20 more likely to find that delicate balance between protecting = profits, riding a good stock as long as possible and = protecting=20 against catastrophic loss.
 
Katherine
----- Original Message = - -----
From:=20 Dimitri=20 Katsaros
To: canslim@lists.xmission.com= =20
Sent: Tuesday, = April 09, 2002=20 5:29 PM
Subject: [CANSLIM] = NVR

Thank you all for the advice on NVR... = after=20 hearing
all that has been said and looking at the = chart,=20 I'm
going to take Katherine Malm's advice by putting=20 a
trailing stop. Should I do it at 8% or perhaps = larger
to=20 weather out any=20 = volatility?

Thanks
Dimitri

=3D=3D=3D=3D=3D
Quiquid=20 latine dictum sit altum=20 = viditur

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