William O'neil ''canslim'' method

Discussion in 'Strategy Building' started by TKOtrader, Feb 2, 2003.


  1. There are many profitable methods of trading... what is important is trading a method that matches your personality.
     
    #51     Mar 3, 2003
  2. I think it is worthwhile to enhance your approach iteratively with stuff that you run across from other's work in investing.

    By setting up an approach at some point, you definitely then are in a position to improve as you learn more.
     
    #52     Mar 3, 2003
  3. jack,
    i have a couple questions for you. i got introduced to canslim about a month or two ago through my girlfriend. ive read the book and also have ibd. ive just recently started using the system to pick out some stocks, both weak and strong. i definetly refer to my own technical analysis before doing any buying or selling.

    i am wondering if you pick out any weak stocks and use them on the short side ?

    also if you are on the long side , whats your average lenth of time being in the trade ? ( i.e... do your trades stay open on average 1 wk, 1 month , 6 wks ?? -- just wondering to give me a better feel )

    thanx -------------tko

    i may have a few more questions later, im still reading your post because you use big words and im slow ! :D :D :D
     
    #53     Mar 3, 2003
  4. I know others on ET would disagree, but I agree with you actually about not getting too specific. I actually have come up with my best ideas and learned the most by just experiementing. I personally would never follow someone else's algorithm or methodology exactly: I actually don't want to make money to just make money. I want to create something of my own that makes money. Otherwise, I might as well open up flower shop or pest control business.

    Anyway, I just want to know that someone is making money using the underlying principles of CANSLIM even in this mkt. Here's a few more questions:

    1. Sounds like you use a modified universe of CANSLIM stocks. My question is this: are you tweaking this or significantly changing it? In other words, O'Neill recommends considering only the best stocks in terms of RS, earnings growth, instit. ownership, etc. Do you still generally hold to that? It sounded like you were saying that you generally believed that you had to make these requirements even tighter rather than modifying or adding to them?

    2. I'll have to look into "rally market analysis" - I can't remember what he wrote about that.

    3. This ties into the last post: Are you saying you often use shorter time frames for CANSLIM somehow? This idea interests me because I know many of the top earners of this quarter will fail on the way to next quarter (or they may get a negative analyst review). I actually looked into this but I felt that any backtesting I did was biased because I was by definition investigating stocks that already had fantastic earnings.
     
    #54     Mar 3, 2003
  5. It is very useful to process stuff thoroughly and get the bits and pieces to sort of fit into what you do. Once you have written out your approach. (like the person put it into C language, then you can see the way add ons will work.
     
    #55     Mar 3, 2003
  6. ***Backtesting is a strange mythical thing. I can explain why but it is self evident after a while. It is best to just get to that place by the route you choose. Making money is a very stimulating process and the focus gets to KISS when you are an expert. When we get to market limitations you will see what I mean.
     
    #56     Mar 3, 2003
  7. Thanks for the elaboration. Again, I appreciate the input. But of course I still have a number of questions if you don't mind:
    1. What are C&H's?
    2. Do you use additional fundamental/balance sheet analysis to tighten your universe?
    3. Do you use more "subjective" (by that I mean non-numerical) such as "quality of mgt" and "market leadership" to tighten your universe?
    What do you mean by fractal? I understand the basic idea of a fractal: that the smaller part is similar to the larger, etc.
    5. Are you willing to buy shortly before an earnings release?
     
    #57     Mar 3, 2003
  8. LOL. Actually I am neutral biased. I sholdn't be I know because the ratio of long to short is 27 to 8 (two cubes) in time. You are long biased and choose that for whatever reasons.

    For fun when I was young I traded around the IBM Board Economic committee meeting. IBM gave me stock purchasing discounts and at that time they had 80% of the world market so splitting the stock ws a constant necessity to carry out their policies. I knew this and so I traded accordingly. Today I do not know what a stock does that I own or trade.

    My test of my methods among others is SEC citations that I get via my broker. The broker gets upset but it all works out. Five citations a year is my record.
     
    #58     Mar 3, 2003
  9. IM THE DUMB ONE ??

    LISTEN TO WHAT YOU PREVIOUSLY WROTE ........ YOU SAID THERE ARE 3 SEPERATE GROUPS YOU GO BY

    ONE IS ''STOCKS BREAKING OUT''

    THE OTHER TWO SAY '' STOCKS ABOUT TO BREAK OUT '' AND ''STOCKS ALMOST GETTING READY TO BREAK OUT '' LOL LOL

    WHAT THE HELL IS THE DIFFERENCE BETWEEN THOSE LAST TWO ??
    NOTHING AT ALL, YOURE JUST A MORON !



    TRUST ME, IF IM ''ABOUT TO'' SLAP YOU AND IF IM ''ALMOST GETTING READY '' TO SLAP YOU , , , , ITS THE SAME THING !! :mad: :mad:
     
    #59     Mar 3, 2003
  10. honestly..

    I dont understand one thing hershey writes..

    I get a headache reading his posts..


    --MIKE
     
    #60     Mar 3, 2003