In a recent thread, dbphoenix wrote: "The futures strategy, as far as I can tell, has nothing to do with the equities strategy, which, also as far as I can tell, is a simple retread of Wm O'Neil, except for the profit-taking aspect. That I have no problem with since I used CANSLIM for 12 years before I switched to daytrading." After reading almost everything posted by Jack during the last 2-3 years, I completely agree with this statement. My impression of Jack was that he had made money over the years trading stocks, not index futures, and that his futures threads just ended up demonstrating that his wider, non-stock-specific views of the market were actually inadequate for trading futures (i.e., he was misled by his own success at trading stocks into thinking that he had something to offer to futures traders). This isn't to say that what he was writing was all nonsense, since he managed to repeat many things that others have been saying long before he came along. With respect to the application of specific indicators and settings to futures trading, however, IMHO he was largely in the dark, and his stuff would only come close to working if you added a real edge (such as a stock that is likely to move in the anticipated direction, or all those non-specific, non-indicator things that are not of Jack's invention). I don't want to waste (our) time arguing about this, but perhaps this thread could be a place to collect traders final impressions of Jack and his strategies.
The people who complained have issues if they insist on reading threads with trading methods that they don't agree with. Jack did not try to sell anything or charge people for help. He did try to help people see a different perspective to how to make money in the market. Even though I didn't follow his methods, I did learn some things. I would think it would be better to ban someone like mrmarket who keeps pumping himself with multiple threads on how he's the greatest stock picker in the world.
i agree. except i wouldn't ban mrmarket either, since we have the ability to put him on ignore and can not click on his threads. however, mrmarket does seem a little like a spammer, promoting his yahoo group and web site all the time. i have no problem with moderators deleting/banning spammers.
I read Jacks stock trading threads. Definitely very CANSLIM oriented. Heavy on the selection of issues to watch, light on the tech analysis, not ineffective probably, just not complex at all. I would say that, without any actual backtesting because I never quite was sure how he entered and exited, his strategy would have been great coming out of a market bottom, possibly been good during a trending market and never would work countertrend. I would say that his methods were left over from pre computerized days and might as well have been shared because everybody has moved on. I think the basic fallacy in CANSLIM is that most of the trades that WJO researched for his book probably were all bunched together when the general market was coming out of a major bottom, just a guess, I never really tried to find out what all the hundreds of best trades he talked about in his book were.
"Now baby, listen, baby, don't ya treat me this-a way Cause I'll be back on my feet some day Don't care if you do 'cause it's understood You ain't got no money you just ain't no good Well, I guess if you say so I'd have to pack my things and go That's right Hit the road, Jack and don't you come back no more, no more, no more, no more Hit the road, Jack and don't you come back no more" Ray Charles
Any long only breakout, pullback strategy works well in a strong bull market. In a choppy or bearish market they will all fall flat on their face. Canslim is really just buying high quality momentum names as they breakout... nothing more nothing less. The whole system only really works in a bull market.. the truth is that anything works in a bull market because 80% of the stocks in the market move together.. the only difference is their relative % change. And of course CANSLIM will usually put you into stocks that are high beta and have the ability to outperform because they are essentially all growth stocks. How Jack claims to make consistent profits using this type of method is beyond me. I agree in a good market he will clean up (as will all breakout and trend players).... but thats only in a good market which is limited in duration. The real question is how to deal with the choppy and ugly market environment.. which is more often than a runaway trending market. This is all why I believe Jack is a fraud and all of his profitable claims are false. There is no way you can make consistent cycling profits year round using such a strategy. --MIKE
My only wish in all this is to keep simple well defined subjects within sensible bounds. For me "The Stochastic Indicator" became chaotic right from the start, in spite of some kind souls suggesting I print out a ream of paper in order to find my way in it. The fact that a new thread got started now "MACD", the natural of twin brother of the "Stochastic", in the midst of a chicken mess merits some reflection.
Interesting, you are saying posts should be "simple" as that is all you are able to understand? Sorry but the market is not simple, well defined or sensible at times. If simple is all you are equipped for you will not last long. It seems odd that if I were to predict the 8-28-03 S&P close to be 1004.5 and be within a point I would be your hero. But if I were to post a detailed study on my reasoning it would be an undefined and chaotic thread that you would shout down as it would be beyond your comprehension. With Jack gone we can get back to more posting on who has the "cheapest commission rates" and "where can I get free data". That must be how the pro's make their money, by getting free data.