has anyone read, used, or heard about william o'neils ''c-a-n-s-l-i-m'' method for trading? i met someone this weekend who uses it , and they are doing VERY well. it isnt meant for ''day'' trading , but more of a position trading or investing purpose. if so , what do you think about it ?
i have his book, and think that his ideas are very solid. it is great, for as you said, position trading over a couple of weeks. this is not for daytrading, but it is also something that you dont have to watch like a hawk, because you are investing in companies with solid numbers behind them. its a good strategy to implement to compliment your trading. when you said you met someone who is using it and doing very well, how are they using it, and what is very well? boomer
Love the Canslim method. As boomer said, it puts you in the driver's seat as far as fundamentals go. Still, good fundamentals do not always keep a stock from going down. So the chart becomes the last resort once the fundies are in place. I cut out an article in one issue of IBD last year that was especially supportive of what we do here on ET. The byline read: "No matter how good a stock's fundamentals, let its price and volume chart guide your buy and sell decisions." Again last week, an article talked about exiting from stocks that were entered using CANSLIM. All of it was technical.
CANSLIM That M stands for Market. Give the market more time............a bull market will happen someday again
But I can't just buy into the IBD and the Canslim method. I read the book, subscribed to IBD (Investor's Business Daily)and online IBD, but to no avail. I would read where " if you did this" or "had you done that" then here were the positive results. But there was never any mention of "do this before hand". Only in retrospect. I believe the book was written in retrospect, hand selecting the most impressive stocks. I believe the book was written to sell subscriptions to IBD. Is there anyone who subcribes to IBD and uses the Canslim method and is really successful? I would be interested to know how this is accomplished. I'll take daytrading over this method anytime.
I do agree here. I complained almost weekly as they continued to post charts of stox from Oct 1998 well into this last year as a means to prove a specific pattern, etc. Finally I was able to convince one of the writers to take it to their weekly meetings that continuing to use that time period was ridiculous, and damaging to their crediblity. Now the charts are much more recent, although as kowboy says, they are after-the-fact. Yet, the paper does not portend to do all of the work for you, just most of it. I am reminded of the chinese proverb, "give a man a fish and he eats for a day, teach him to fish, and he eats for a lifetime." So I have to ask you kowboy, did you try it, even on paper, and it failed miserably? Or is your complaint only that because they didn't make the picks for you, you could not see the merits of the method?
boomer, i really dont know how he uses it exactly because we only talked for a few minutes. i know he is a portfolio manager for a securities corporation and he says he goes mainly by o'neils ''how to make money in stocks''book. i do know he uses ma's and s/r with it. i will talk to him soon because he gave me his # to give him a call. u asked what is very well ? well to me he is doing very well. im not going to post all his personal info on the net, but i can tell you this....... he manages a portfolio of around 13million, he has his own personal account that he trades which is of 7 figures, and he just bought a popular celebrities home for 7 figures(its an older home, but it still cost 7 figures), and his wife does not work........ to me this is doing very well if not great. the reason i know all of this is because he is a relative of my girlfriends family(who we went visit this weekend) and the family told me most of the info and showed me pictures of his house. he didnt get into all of this personal info but im sure he knows they told me this. but anyways let me know if you have more questions.
You bet I tried it faithfully for a number of months. But guess what, by the time a stock would hit the IBD radar screen, it was usually too late and already had its runup, and the stock would languish in flatline neverland going nowhere. The price appreciation having already taken place before it ever hit the IBD screen. As for IBD and the canslim method, I say horse P**P. A total waste of time, especially since it depends mostly on a bull market for appreciation and no opportunities in a bear market. The best outcome of reading IBD, was a series of articles on Sammy Chua written in IBD by Peter Mckenna. More to my style of trading.