Comments on: Cash Back from Mastercard and Baidu http://www.chrisperruna.com/2007/05/30/cash-back-from-mastercard-and-baidu/ A blog about trading, finances, success and life itself Fri, 30 Dec 2011 14:18:33 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Bullish Jim http://www.chrisperruna.com/2007/05/30/cash-back-from-mastercard-and-baidu/comment-page-1/#comment-8132 Bullish Jim Sat, 02 Jun 2007 12:58:55 +0000 http://www.chrisperruna.com/2007/05/30/cash-back-from-mastercard-and-baidu/#comment-8132 Your GROW pick looked awfully smart Friday afternoon. I still don't know what caused it to jump 17% in 3 hours. I think I owe you a beer for bringing that one to my attention. Your GROW pick looked awfully smart Friday afternoon. I still don’t know what caused it to jump 17% in 3 hours. I think I owe you a beer for bringing that one to my attention.

]]> By: Chris http://www.chrisperruna.com/2007/05/30/cash-back-from-mastercard-and-baidu/comment-page-1/#comment-8041 Chris Thu, 31 May 2007 21:32:55 +0000 http://www.chrisperruna.com/2007/05/30/cash-back-from-mastercard-and-baidu/#comment-8041 Albert, The IBD 8-week rule is sometimes right but I would never hold a stock for 8 weeks if it is flashing sell signals. Set a trailing stop of 15% to 25% from the high since you entered the position. This will allow you to weather the bumps without getting sold out but will get you out if the stock starts to tank due to some reason. See the math example below or visit my position sizing spreadsheet for the exact calculations. If you are stopped out after a 15% decline from the top; I wouldn’t recommend getting back in at a lower price unless the stock is holding another support area or forming a new base above a major moving average. Some traders will sell when a stock drops ‘X-times’ greater than the average true range (ATR). Sell Stop Example: Buy at $50 Recent high is $73 Stock is now at $70 Set the stop 25% from the 46% peak gain or ($50*46%)*25% = $5.75 Protection stop can be placed at $73-$5.75 = $67.25 This will guarantee a 34.5% gain from the initial buy point at $50 but also give the stock room to grow. Albert,
The IBD 8-week rule is sometimes right but I would never hold a stock for 8 weeks if it is flashing sell signals. Set a trailing stop of 15% to 25% from the high since you entered the position. This will allow you to weather the bumps without getting sold out but will get you out if the stock starts to tank due to some reason. See the math example below or visit my position sizing spreadsheet for the exact calculations.

If you are stopped out after a 15% decline from the top; I wouldn’t recommend getting back in at a lower price unless the stock is holding another support area or forming a new base above a major moving average.

Some traders will sell when a stock drops ‘X-times’ greater than the average true range (ATR).

Sell Stop Example:
Buy at $50
Recent high is $73
Stock is now at $70

Set the stop 25% from the 46% peak gain
or ($50*46%)*25% = $5.75

Protection stop can be placed at $73-$5.75 = $67.25

This will guarantee a 34.5% gain from the initial buy point at $50 but also give the stock room to grow.

]]> By: Albert http://www.chrisperruna.com/2007/05/30/cash-back-from-mastercard-and-baidu/comment-page-1/#comment-8006 Albert Thu, 31 May 2007 02:46:10 +0000 http://www.chrisperruna.com/2007/05/30/cash-back-from-mastercard-and-baidu/#comment-8006 Chris, A few questions regarding your point of guaranteeing a 20-25% or more gain. I have several stocks in which this is the case: *MA up well over 100% with my initial position at $42.75 *AAPL up over 27% with my initial position at $92.90 *PCS up over 43% with my initial position in at $25 *TWIN up over 42% with my initial position in at $48.80 If one follows IBD, which I do, TWIN falls into the category of a stock moving 20% within a week and having to hold it for at least 8 weeks. This rule has provided me with an even heftier profit as I have added to my position and in turn increased my profits. And now the question; how does one determine, at this point, where to place stops in order to retain some gains? If I set stops say 5% below today's closing price, do I also enter buys slightly lower to get back in at a lower price just in case my stops are triggered? I look at all of my positions daily (regularly) to look for any red flags and I have no problem sitting through bumps, but the hardest part for me has been when to get out. Thanks for your input in advance. Chris, A few questions regarding your point of guaranteeing a 20-25% or more gain.

I have several stocks in which this is the case:
*MA up well over 100% with my initial position at $42.75
*AAPL up over 27% with my initial position at $92.90
*PCS up over 43% with my initial position in at $25
*TWIN up over 42% with my initial position in at $48.80

If one follows IBD, which I do, TWIN falls into the category of a stock moving 20% within a week and having to hold it for at least 8 weeks. This rule has provided me with an even heftier profit as I have added to my position and in turn increased my profits.

And now the question; how does one determine, at this point, where to place stops in order to retain some gains? If I set stops say 5% below today’s closing price, do I also enter buys slightly lower to get back in at a lower price just in case my stops are triggered?

I look at all of my positions daily (regularly) to look for any red flags and I have no problem sitting through bumps, but the hardest part for me has been when to get out.

Thanks for your input in advance.

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