CANSLIM - Highly profitable trading strategy

C

canslimer

Obchodovanie is a word from Slovak language and it means in English Trading.

I am an average guy from a hearth of Europe and I make a living by trading fast growing stocks. In my website I want to share with my readers, my inside about the market, free technical analysis of possible trades and real time trade management of open positions.

I am a subscriber of Dan Zanger´s report (world record holder for making 42 000 000 from 10 000 in 3 years) and also Investor´s business daily newsletter. I trade same stocks as they do and I am giving it for free...

DIARY OF A STOCK TRADER
http://obchodovanie.com/
 
The current market environment looks to me the most bearish in the last 3 years. All the technical and fundamental analysis showing us that right side of the market is bear side. We hear from everywhere about debt ceiling, unstable economic growth and possible collapse of some countries and their whole economy.

I do not need to see this economic data to see big picture. When we look back to 2008 we will see same pattern like is happening right now. The bearish low volume flag is so obvious that you can not find a better example.

The other supporting factor of my bearish opinion is that I do no see any accumulation days during the rally. All the moves went up with very light volume below average of 50 days. Otherwise it was during the selloffs.

Next thing is that we are facing the third year of a bull market. It is very typical to see this kind of behaviour in these later stages of bull runs...


DIARY OF STOCK TRADER
http://obchodovanie.com/
 

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Quote from canslimer:

The other supporting factor of my bearish opinion is that I do no see any accumulation days during the rally. All the moves went up with very light volume below average of 50 days. Otherwise it was during the selloffs.
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The little rallies we've been having had higher volume than the average of the entire last year. Can you post a chart to support what you are saying?
 
Thank you for your reply...
Yes you are right but compare the volume of positive and negative trading days in this bear flag...

You can see that during the selloffs the volume always spiking and when the market rise volume was always much much lighter than during the selloffs.... And also look how strong was move which break the head and shoulders pattern. This move telling me (with so big selling preasure on volume)that bears control this market and that the first driving move was only the beginning.

I will be glad if I am wrong because I am not good at short selling and belive strongly in cash as a position during correction moves and bear markets... You can make money simple by that you re not loosing it..

For example I sat in cash from the end of 2007 until the june 2009. It is really useless to fight against the direction of the market...
 

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EVOLUTION OF A TRADER
Step One: Unconscious Incompetence

This is the first step you take when starting to look into trading. you know that its a good way of making money because you've heard so many things about it and heard of so many millionaires. Unfortunately, just like when you first desire to drive a car you think it will be easy - after all, how hard can it be? Price either moves up or down - what's the big secret to that then - let's get cracking!

Unfortunately, just as when you first take your place in front of a steering wheel you find very quickly that you haven't got the first clue about what you're trying to do. You take lots of trades and lots of risks. When you enter a trade it turns against you so you reverse and it turns again… and again, and again.

You may have initial success, and that's even worse - because it tells your brain that this really is simple and you start to risk more money.

You try to turn around your losses by doubling up every time you trade. Sometimes you'll get away with it but more often than not you will come away scathed and bruised You are totally oblivious to your incompetence at trading.

This step can last for a week or two of trading but the market is usually swift and you move onto the next stage.
 
I'm focused on TA for many years now, combined with Canslim seems like fun.

The Dow Daily chart shows that the price is below the 200 SMA and that bear flag is as bearish as it can get, the trendline is already broken in fact... it's going to be a real mudslide and who knows where all the mud will wind up?
 
The Eur/Usd opened with 80 pips gap down so probably the stocks also open lower.... Who knows black monday???? I am glad I hold my portfolio 100 % in cash
 
I spent a little more time with the DOW Daily chart.. if price breaks 10,300 it will freefall to 8300...

Investors should watch and at some point start buying some good companies that are paying some dividends. The entire market will be dragging otherwise good issues down in price... Canslim methods buy on the way up, Canslim methods might be late to those markets, no?
 
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