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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: Jay Lyons who wrote (560)	9/22/1998 8:43:00 PM
From: LastShadow	Read Replies (2) \| Respond to of 43080

Stops and Stocks and IFMX I use a growth weighted trailing stop that gets tighter as the stocvk approaches my strike price. For ASND, there was the double threat of the previous local maximum of 49. I had entered ASND at 37.25, so a 30% gain was about 48.5 - a regular 8% trailing stop from yesterday's close of 49.5 makes it around 45.5 - personally I didn't want to give up the other $3 in case it corrected down. The midpoint between yesterday's high and low was 47.5 - splitting the difference between that and my 30% gain strike gives 48 - this is also the 4 day moving average. As for MU, yesterday's spread was huge 4.5 points between the low and high, and only about half that between the open and close - therefore the stock was trading wildly but still opening and closing within a reasonable price range. - The 31.375 was chosen based on yesterdays intraday floor. Since I was again up about 30%, I felt it was better to initiate those stops than lose half the gain to date. Using just an 8% trailing stop is great if the stock is trending. Once you get over 20% gain though, one needs to tighten those up a bit. I have trun both the TA and Net already for both those, and they are still holds - in fact, other than PNF, evertything (including IFMX) is still a hold. However, There are several stocks I am looking at that seem ready for substantial gain and I intend to accumulate some stocks. Having taken 30% from ASND and MU, I wasn't too concernedabout wheter I could milk it a little more. ASND could go to 55, and MU to 36, but if either look to do that I will re-enter. To answer thequestion, setting stops is not a mechanical thing for me. I set the specific to the stock and its gain and trading action. If I don't like what I see or feel the risk is growing, I close them in. As a thought, trendline says that ASND could go as low as 45 and still be uptrending. That would be the level to reenter at. lastshadow