SHREVEPORT, La., Nov. 11, 2004 (PRIMEZONE) -- Stock-Letter-Daily.Com (http://www.stock-letter-daily.com -- an affiliate site of StockPickReport, the web's only non-mainstream stock rating service), rates JDS Uniphase, InterActiveCorp, Hewlett-Packard Co., Applied Micro Circuits Corp.
STOCKPICKREPORT RATINGS:
JDS Uniphase (Nasdaq:JDSU) -- SELL
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=JDSU
InterActiveCorp (Nasdaq:IACI) -- STRONG SELL
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=IACI
Hewlett-Packard Co. (NYSE:HPQ) -- STRONG SELL
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=HPQ
Applied Micro Circuits Corp. (Nasdaq:AMCC) -- SELL
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=AMCC
STOCK COMMENTARY:
Thursday, November 11, 2004 StockPickReport Commentary Stop/Losses Continued...
QUESTION #1: So what are stop/losses, and how do I apply them? ANSWER: A stop/loss is really two things: A concept and a number. The concept is that when you buy a stock it may do three things: 1) Move up, 2) Trade flat, or 3) Move down. If a stock goes up or "trades flat", decisions are easy. Yet, when a stock moves down, the decisions are more difficult. A "stop/loss" takes the concept of "what will I do if the stock I bought drops" and turns it into a hard number. It's the admittance (ahead of time) that not all trades work out the way we want, and if this trade goes against us we will sell on the way down to STOP further LOSSES.
QUESTION #2: I use Schwab's StreetSmart software. They give a number of options to set stop/losses, including "bid" and "trade price". I generally use the "bid" option so the stop gets triggered when the bid drops to a certain level. Is that in line with the method you suggest? ANSWER: We use an algorithm that looks at a stock's intraday low prices over a given period to find a stop/loss. We like intraday low prices because stocks can trade lower intraday than they will close, so to use closing prices could cause traders to be unduly "shaken out" of a stock.
QUESTION #3: Do I get access to the stop/loss price recommendations with my subscription? I'm new to your site and did not know where it was found. ANSWER: Stop/Loss prices are standard with your Daytrade, Penny Stock, Swing Trade, or Cliff Hangers service.
QUESTION #4: Can you tell me how to set up the price of stop? Can I use 5 or 7% of the purchase or any other ways? ANSWER: We do not use a set percent to find stop losses. Stocks are different from each other. Markets are different from each other. Traders ability to accept risk differs from trader to trader. There is not really a set percent we would recommend. We think you would be wise to look at stock's low prices over a given period to find a stop/loss.
QUESTION #5: I've been using stochastics, RSI, and MACD for some years, using Trade Station. Obviously the longer the period the safer the pick. For trading, I use 60 minutes, and fine tune to 15 if I can. What is the timing for your picks? Daily? ANSWER: For the Swing Trade, Penny Stock, and Cliffhanger service, we look at a few days to a few weeks. For the Daytrade service we look at a day to a few days.
QUESTION #6: You talk about "tight" stops, which I follow, but I am confused with Stop orders and Stop Limit orders. Could you please explain the difference. ANSWER: We use the word "tight" to suggest that, on a percent basis, our stop/loss is close to the recent close price for a stock. If a stock is at $10.00 and we suggest a stop/loss of $9.95, that's a percent of 1/2 of one percent. That's TIGHT. If the stop/loss we suggest is $9.00 (10%), that's NOT TIGHT.
We hope these answers help you understand stop/losses.
If you have any other questions, please email us at don@strikefriday.com.
For More Commentary Go Here: http://www.stock-letter-daily.com/index.htm
WHAT THESE RATINGS MEAN:
StockPickReport.Com ranks stocks with technical analysis. These ratings do not indicate a "long term" view. These ratings reflect an opinion for the short term. These ratings may change based on market conditions.
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If the links to our ratings above do not work, please use these:
JDS Uniphase (Nasdaq:JDSU) -- SELL http://www.stockpickreport.com/rating.php?sym=JDSU InterActiveCorp (Nasdaq:IACI) -- STRONG SELL http://www.stockpickreport.com/rating.php?sym=IACI Hewlett-Packard Co. (NYSE:HPQ) -- STRONG SELL http://www.stockpickreport.com/rating.php?sym=HPQ Applied Micro Circuits Corp. (Nasdaq:AMCC) -- SELL http://www.stockpickreport.com/rating.php?sym=AMCC