canslim

Discussion in 'Strategy Building' started by cashisking, Jan 27, 2006.

  1. cashisking

    cashisking

    does anyone here use this strategy. ive been using it for a year now with some good gains. caught stocks like goog, aapl, tol, and cib. does anyone want to discuss any nice trades they made with this trading method. thank you
     
    #1     Jan 27, 2006
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  2. murray t turtle

    murray t turtle

    =============
    Best bang for buck/understandable tek analysis;
    William O 'Neil books ''How to make money in stocks'',
    24 E lessons book ,
    How to Sell stocks short book .

    Especially first one-can slim plus;
    Wisdom is profitable to direct.:cool: Cash/king,Can slim - can cut better sometimes than 7-8% stop loss
     
    #2     Jan 27, 2006
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  3. tradingbug

    tradingbug


    Thats wonderful that you were able to catch these great stocks. I had a few questions if you dont mind. I have been looking into his canslim process and was trying to catch the Intermediate Trends out of their base. I actaully trade a shorter time frame but was looking for good IT stocks for my freinds.

    So the Qs are what is your average hold length and average gain?

    I have AOB and NFLX as breaking out of thier bases. I have BCSI and IRIS basing and looking for the possible BO out of their base.

    Based on your experinces, what is your take.
     
    #3     Jan 30, 2006
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  4. cashisking

    cashisking

    thanks for the reply trading bug. have you read any william o'neil books? i follow all his rules in the book and i dont stray away from his strategy. my average holding is between a month to three months. take a stop loss at 8% and a gain at 19% or 20%. or if the stock feels like a rocket ill hold on past the 20% and just sell it when it feels right. just like GOOG and AAPL i had gains of over 50% on those two stocks. as for AOB and NFLX i havent been watching those stocks. i try to look for stocks in the ibd 100 with high ratings that breakout. some of my current holdings are TS and MRVL. i hope this helps.
     
    #4     Jan 30, 2006
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  5. tradingbug

    tradingbug

    I am actually trading from mexico as I am with family so I have not been able to do as much replying and studying as I would like(no internet access in the condo I am staying in). I did catch a 40 pound Tuna yesterday and released it(my whole body is killing me).

    Anyway, your current holdings look great. I am glad they are working out very well for you. I looked at their historical RS and EPS and they fit into the current mold(usually changing) I have for a great stock.

    Now, for some duscussion. I looked at the current stocks you bought and have been thinking about when and where to buy for optimal price gain.

    I did read WJO books and am aware of the cup and handle. Logically, if it were possible to buy at the bottom of the cup right before the BO to form the right side of the cup, i would think it would be the optimal entry.

    Lets use your 2 stocks as examples.

    TS: The bottom of the cup looks to be formed in Nov with the BO in Dec as the right side of the cup. The handle then occurs from the 2nd wk of Dec to the end of the month. It then seems to break out of the handle in Jan.

    MRVL:The cup is formed in Oct. BO of the cup in NOV and forms its handle in the month of december.

    Now, In terms of optimal entries. TS and MRVL seem to differ in terms of where they are in their IT trends for optimal entries. TS's optimal entry looks to be at the break of the handle(jan 03) while MRVL's optimal entry looks to be on the BO to form the right side of the cup.

    Where did you buy these stocks in terms of their formations?

    Maybe entering on the break of the cup and then monitoring the situation to either get out if the handle is forming below your entry price and otherwise holding for the IT trend.

    How do you handle earnings and do you monitor sectors?

    Thanks in advance.
     
    #5     Feb 2, 2006
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