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John!
I agree that NITE doen't look too bad. This stock is extremely volatile so
in my view you realistically need a fairly loose stop. I'd vote for just
below 27! You can control your risk in money terms by reducing your position
sise rather than keeping an unrealistically narrow stop.
I've been successfully trading this stock myself both long and short for
around a year and it is one of the more volatile ones I trade. Its annual
volatility often exceeds 100% and is currently around 67% measured over the
past 20 days.
Best regards,
Yngvi
hardy@xxxxxxxxxxxxx
-----Original Message-----
From: owner-metastock@xxxxxxxxxxxxx
[mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of John Manasco
Sent: Thursday, July 13, 2000 12:50
To: Metastock List
Subject: Good Knight
I'm considering a position in Knight/Trimark symbol NITE. The stock and
sector both seem to have bottomed (may be a big assumption) and are turning
up. It closed yesterday (7/12) at 30 11/16. It crossed significantly above
its 10 day ma but is still below the 200 and 50 day ma although it is
bumping up against the 50. The 50 day ATR is about 2.75. If I enter at
yesterdays close of 30 11/16 and only want to risk 2% on the trade then I'll
put my stop at 30 1/16 which is only 5/8 away from my entry. If I use the 50
day ATR the my stop will be about 27 15/16. If I use the near term low on
7/10 of $27 I would place a stop at 26 15/16. So where would you place a
stop? What is a reasonable risk profile for this stock?
NITE's most recent high on 6/02 was 35 1/2 so what could I expect to make on
the trade?
Comments requested
John Manasco
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