If you can post triple digit returns during bull markets you won't have to worry about trading during bear markets, that is if you are uncomfortable with shorting.
Exactly. What newcomers don't understand is how extraordinary these circumstances are. Bull markets generally last only a few years and bear markets less than half that (corresponding more or less to the business cycle), though there are of course ranges for each. Therefore, the amount of time one is expected to "sit out" using CANSLIM is relatively trivial. But we've fallen out of a near-20-yr bull market, and the bear has lasted three. Three years is a long time to sit, but nobody said that CANSLIM is the only strategy that should reside in the toolbox. Rather than make extravagant modifications to CANSLIM in order to make it work in markets for which it was not designed, why not just call one's strategy whatever it is (whatever that might be) and proceed from there? --Db
Phoenix is correct... I personally have a friend that turned $500K into over $10 million in the 1990s trading the CANSLIM method... for the last three years he has been trading another strategy and mostly churning... he is waiting for the right market conditions to put his equity back to work... nevertheless, he has been living a great life with the wealth he created in the last bull market.
In contrast to all those who gave so much of it, or all of it, back, because they ignored the sell signals provided in March '00. --Db
From what I read here, several people think that CANSLIM and the thesis of WJO in IBD etc works primarily in bull markets. There seems to be a feeling that we are in times that do not work. I use a combination of fundamentals and TA. Right now I find that using CANSLIM to pick my universe and then trading using TA works as well as ever. The actual facts for me are that my profit per cycle remains about the same and, fortunately, the periodicity of ycles is shorter than usual. So what makes my views different than those vof the group posting on this thread. First of all I trade the natural cycle dictacted to me by the market and not the IT cycle you are focussed upon. Were I to look at the IT and I have I find that it is alive and well. Today anyone choosing the IT over the natural cycle makes that decision because of his place in life. By doing the IT a person gets to a place where he can then accelerate his capital appreciation using the natural cycle. This is a choice. From the beginning because I am an analytic person, I picked he place to make the most money per unit time instead. Anyone who currently has to have a job can do the same and trade on the proper fractal by just reviewing the day retroactively and not make quite so much money but still make more money than the IT approach. You can all give thought to reasoning your way through using basic sound thinking modified to you taste. It is not a grown up reasoning process to say that a mthod only works some time. You are off base when you do not take the trouble to do your homework to figure this out. It will take you about twpo minutes to do a CANSLIM analysis of any day's stocks and find out day after day that the same opportunity is there day in and day out. Get with it and make somemoney.
????? whats the ''IT'' ????? IN A MUCH SHORTER VERSION , I TAKE THAT WHAT YOU WERE TRYING TO SAY IS.......... THAT THE METHOD OF ''CANSLIM'' STILL WORKS ! / ? ...... RIGHT ?? and whats WJO ??
then what do you mean ? so now you are saying that canslim doesnt work. you confuse me .... lol are you using canslim right now ? basically on the long side of stocks ?