IBD doesn't work.

Discussion in 'Trading' started by dave74, Feb 19, 2008.

  1. dave74


    I've tried IBD, and it doesn't work.

    Now, I won't waste any time on it.

    I've paper traded many of their top picks in their top 100 list a while back, and the results were horrendous.

    This was all before I even knew about the brutal CANSLIM funds. The performance of these funds is all you need to know about its efficacy.
  2. Its performance is relative to the market.

    If indexes are going down, or going nowhere (as now), it would be very hard, even for good companies, to see their stock rally.
  3. Brandonf

    Brandonf ET Sponsor

    So many people seem to have a mental lazyness about them and they want to be able to take everything exactly as it's laid out. That will never work in the market, because the market is always changing a bit. The concepts behind IB are, however, very valid. If your a true follower of IBD you would not be in the market right now anyway. It definatly works better in a bullmarket, but being in cash when the market falls apart is hardly a bad thing.

    PS, please note that I HATE IBD the company, they sued me for simply noting on my old website that William O'neils methods have had a huge influence on what I do. I was only trying to say I did not invent the wheel and not try to claim credit for something I did not invent myself. They, however, said that I was using their good name and trademark for my own benefit and sued. Sooo, again, there is no love lost on my part towards IBD the company. That said, I still use their products and would be lost without them.
  4. That actually sued you or just warned you... ??

    Sued - as in court or?...

    I am building a website of stock info somewhere down the road before Y3K... so i take it from this I need to be very careful with what i write...
  5. Brandonf

    Brandonf ET Sponsor

    Again I hate to defend a company that I hate, but I find myself compelled. I hope I don't get sued by the Canslim funds now too, but if you read their documents they are not true Canslim. One of the rules they have, for example, is that they always have to be at least 80% invested in the market. A true follower of CANSLIM would go 100% to cash during such times as a bear market, so using the performance of the Canslim funds to validate your opinion of Canslim as a method is not really valid. Second, the IBD100 is about worthless, IMHO. If you take the advice of IBD literally, which is to buy the strongest stocks in the strongest groups you would not due yourself any favors long term in my opinion. If your method is to buy the #1 stock in the #1 group all you have really done is put your faith in momentum and bought what is probably the most extended and overowned stock in an extended and overowned group, hardly a way to profit.

    I'd suggest that if you want to see how using CANSLIM as a base can truely work for a person you look at Gary Kaultbaum and or Mark Boucher, who both offer products online via Tradingmarkets, and both guys have been around a long time and are profitable. I'd also humbly suggest that I am also proof that Canslim as BASE, not an ENTIRE APPROACH works very well, and my money mgnt clients would likely agree. We have very little volatility and good overall returns with growth plays and sector rotation etc.
  6. Brandonf

    Brandonf ET Sponsor

    Be careful, they have no problem sending the lawyers after you and actually sueing in the LA Superior Court, which is what they did to me.