Can Anyone Honestly Vouch for CANSLIM?

Quote from ByLoSellHi:

As I've posted before, I'm up a decent % since I started trading several months ago.

I've found that it's getting difficult to match my earlier performance on an ongoin, continuous basis.

I'm up 22% since late June, but have been sucking wind for the last couple of weeks.

Does anyone use/subsribe to CANSLIM (either the letter or the online service)?

Is it just another gimmick, or is there truly something to it?
More...

as i recall won started a fund many years ago using canslim,
but closed after a short and unsuccessful run
:(
cheers
john
 
CANSLIM's days were numbered when funds began to proliferate. When those funds began to buy stocks based on expectations of earnings rather than on earnings achieved, relative strength -- "L" -- became far more important than "C" and "A". As for "I", any at-home trader who thought he could find one of these little gems before the funds did was naive at best.

The cracks became irreparably wide after '98, funds came up with increasingly exotic ways of justifying their purchases, and momentum became all. Retail traders bought on this basis, and the quick often won. But there was nothing supporting these prices other than hope. All of this came crashing down a year later.

Not that there's anything wrong with a momentum strategy based on relative strength and chart patterns. But if one kids himself that any of this has to do with earnings, he is likely to be buying the wrong thing at the wrong time and letting the right thing get away from him.

At one time, the charts which IBD provided were worth the price of the paper. But now that sector and group charts are available at BigCharts and a simple Slope indicator can provide relative strength measurements (hence a means of scanning by computer), one is much better off charting his own course rather than reading about companies that thousands of other traders are also reading about at exactly the same time.

LC
 
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