Always lurking. My trading's kind of evolved similar to yours in that I focus more on futures. What a strange long trip its been...best of luck.
are there any CANSLIM traders here?
- Thread starter andrasnm
- Start date
Always lurking. My trading's kind of evolved similar to yours in that I focus more on futures. What a strange long trip its been...best of luck.
I'm starting out with canslim and have a question.
What about a stock which has moved 200%-300% already. When is it to late to buy?
What about a stock which has moved 200%-300% already. When is it to late to buy?
I'm assuming you are referring to a stock that has run up that much and then formed a base. As long as it is an early stage base (1st or 2nd stage), it is not too late to buy if it meets all the CANSLIM criteria, has formed a sound base, and breaks out on strong volume. However you should be realistic in your expectations of how much further it can go -- keep it on a short leash if it starts acting poorly.
Ok, I see. But why is the 3rd base not the 5-th. Is this standard EW-Theory?
here's an implementation of the CANSLIM search
http://moneycentral.msn.com/content/Investing/Findhotstocks/P71529.asp
http://moneycentral.msn.com/investo...153Z05L500ZF181Z04L5Z&Name=CANSLIM&Tickers=25
http://moneycentral.msn.com/content/Investing/Findhotstocks/P71529.asp
http://moneycentral.msn.com/investo...153Z05L500ZF181Z04L5Z&Name=CANSLIM&Tickers=25
The strategy has nothing to do with Elliott Wave. Late stage bases means the stock is more likely to be known by most everyone, leaving fewer buyers to drive the price up.
But why the third not the 5th or 10th? Another magic number.
It's based on studies of leading stocks over the past 50 years. 3rd stage bases and beyond have a higher probability of failure than 1st or 2nd stage bases. The whole strategy and reasoning behind it is laid out in "How to Make Money in Stocks" by O'Neil.
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1] Sounds excellant.
2] Like one of his newer books;;
How to make money selling stocks short'' by William O Neil
3] Also just did a speed read , he mainly warns about late bases/50dma/200dma, weak sectors.....;
not 200-300%% ,
2-300% [ could be , but isnt necessarily much].
4] ''Dome Petroleum went up;
1,000% ''
Page 4 WON book,2nd edition
[Got that free with 6 months IBD subscription]
How to Make Money in Stocks
I have read the book several times. Still there are several things I don't understand
How do you define a base then? Then there is the base-upon-base pattern. How does this pattern go along with the 3rd base BO?
How do you define a base then? Then there is the base-upon-base pattern. How does this pattern go along with the 3rd base BO?