I doesnt work especially in these market conditions. And it is too much work. There are 7 yes count em' 7 criteria that must pass for a valid canslim stock Thats is too many sets of criteria. If i spend that much time and effort picking stocks I would have time to actually make any money. I see google go up %2 today in the morning so I buy it on an impulse for example only one step. Im up 2.5% which is a cool $1000+ paper profit. Easy. Why people waste thier time with these complicated methods is beyond me?
The key with any system is knowing under what market conditions to use it. You learned something that is very valuable. There is a good chance we are in a bear market now. My friends using CANSLIM didn't do so hot with it in the last bear market... It is very good with the right market conditions, however.
I reocmmend buying on impulses and selling for quick profits. See stock go up..buy stock. If you send too mcuh time thinking you get in too late and the stock drops. it isnt a holy grail just a good method. 7/10 timesI sell see a stock on my trading screen go up and it is breaking out and when I jsut buy it on that impulse whout pondering over TA I make more money than if I ponder over TA and then buy. My point is dont overanalyze and CANSLIM involves too much of it.
7 steps is too many. I kept hearing about CANSLIM and I decided to read Oneils book and it is interesting but a lot of work. if there is one thing I do agree with though is setting stops at %7-8. Thats is sound advice cause I have seen stocks drop 20-50 percent quickly and if you don't bail out early you can lose almost everything (margin makes it much worse).
CANSLIM is a fundamental analysis approach while your buying on the breakout is a price chart analysis, or better said, technical analysis. CANSLIM is not really TA at its heart. So you are comparing apples and mangos (sweeter than oranges )