Canslim
- Thread starter Baruch
- Start date
I agree - if they were a "stock picking service". But, I view them as fundamental screeners for a list of stocks I look at to see if it fits my technical criteria.
If you look at all of their updates, there are too many stocks that fall into their CANSLIM criteria to track. That is why I referred to it as being annoying in my previous post, and stated I focus mostly on the monthly newsletter.
If you are looking for a list of stocks to blindly buy, I would not subscribe. But, if you are looking for some fundamental analysis to augment your technical analysis, this will provide you with a place to start.
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Don't know of many books , including a long track record, that have that kind of a bang for your buck;
like William J . O ' Neil , not everyone would use ''n'' for new like him
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As for those who say you never get good advice for free;
perhaps true in a limited sense but maybe they never had 10 free newspapers-IBD.
Is that everyone uses the premise that it's supposedly a good way to pick stocks for a longer term investment. Perhaps there is some merit, but I was never able to get it to work consistently.
I have read both of ONeill's books and had subscribed to the online and print IBD. And tried to implement the method faithfully. I finally decided I could do better on my own, daytrading rather than trying to implement this system.
My problem with the system is that by the time a stock came up on the radar screen, it already had a high RSI and had already been "discovered." And as such might just as well go down as go up in price, as some of them being in the overbought condition. Also the newsprint edition had what I consider a lot of "old" information. Always referring to "IF YOU had done this", here would be the results. All of the examples in total hindsight, and no specific picks beforehand.
If you could find stocks that met all of the other CANSLIM criteria, but had RSI's in the 70 to 85 area, maybe it would work.
So that's why I legitimately ask, is this working for anyone else in a consistent manner and how are you actually picking your stocks? And if the system is so reliable, why doesn't the above mentioned site actually have the brass to pick stocks and show the results?
I guess my mind is closed, at least for the time being, until someone would demonstrate the consistency of the approach.
Thanks.
I have read both of ONeill's books and had subscribed to the online and print IBD. And tried to implement the method faithfully. I finally decided I could do better on my own, daytrading rather than trying to implement this system.
My problem with the system is that by the time a stock came up on the radar screen, it already had a high RSI and had already been "discovered." And as such might just as well go down as go up in price, as some of them being in the overbought condition. Also the newsprint edition had what I consider a lot of "old" information. Always referring to "IF YOU had done this", here would be the results. All of the examples in total hindsight, and no specific picks beforehand.
If you could find stocks that met all of the other CANSLIM criteria, but had RSI's in the 70 to 85 area, maybe it would work.
So that's why I legitimately ask, is this working for anyone else in a consistent manner and how are you actually picking your stocks? And if the system is so reliable, why doesn't the above mentioned site actually have the brass to pick stocks and show the results?
I guess my mind is closed, at least for the time being, until someone would demonstrate the consistency of the approach.
Thanks.
Nice post. You provide ET with a well stated viewpoint.
The investing industry has had many many interesting milestones over the years. One of the common challenges they represent is how to learn to use them.
Ranking stocks by percentiles and tracking the 197 sectors are two major contributions of the IBD clan.
The application of the PC and software to investing are other examples.
For those who think and process as you do, there are only a few steps or changes required to understand the opportunity you have so far missed.
You read and use the stuff as history instead of using it as a way to be prepared. To not continue to be irked by this failing, you might try to put yourself in the place of those who irk you. Do the job they do when they do it. If necessary, many people here can explain to you how to do that.
I run about a few weeks ahead of the cup and handle selections of IBD. I use Boolean equations to detect the formation of impending targets that can be played as IBD does. Thus anyone can watch the C&H's form well before the entry is taken.
In the past your comments have usually been similar to those in the post you made below. Instead of continuing in your present mental mind-set, why don't you learn to anticipate the situation instead. From my experience working with most ages, I find that most interested people from fifth grade on up can easily anticipate the intermediate trend moves so clearly set forth by O'Neil and company.
If you want to really grow wealth by using a short term trading approach instead of the intermediate term, you can easily trade the traverses of these stocks in the intermediate trends in which they traverse. Shoot for about 10 to 20 % every 3 to 4 or 6 to 8 days. There are two frequencies of short term cycles running nowadays.
Everything is spelled out for you. Chasing the RSI as you do is not necessary at all.
The investing industry has had many many interesting milestones over the years. One of the common challenges they represent is how to learn to use them.
Ranking stocks by percentiles and tracking the 197 sectors are two major contributions of the IBD clan.
The application of the PC and software to investing are other examples.
For those who think and process as you do, there are only a few steps or changes required to understand the opportunity you have so far missed.
You read and use the stuff as history instead of using it as a way to be prepared. To not continue to be irked by this failing, you might try to put yourself in the place of those who irk you. Do the job they do when they do it. If necessary, many people here can explain to you how to do that.
I run about a few weeks ahead of the cup and handle selections of IBD. I use Boolean equations to detect the formation of impending targets that can be played as IBD does. Thus anyone can watch the C&H's form well before the entry is taken.
In the past your comments have usually been similar to those in the post you made below. Instead of continuing in your present mental mind-set, why don't you learn to anticipate the situation instead. From my experience working with most ages, I find that most interested people from fifth grade on up can easily anticipate the intermediate trend moves so clearly set forth by O'Neil and company.
If you want to really grow wealth by using a short term trading approach instead of the intermediate term, you can easily trade the traverses of these stocks in the intermediate trends in which they traverse. Shoot for about 10 to 20 % every 3 to 4 or 6 to 8 days. There are two frequencies of short term cycles running nowadays.
Everything is spelled out for you. Chasing the RSI as you do is not necessary at all.
I am compelled to second the words of Grob on this matter regarding CANSLIM. And I would encourage you to read the thread:
http://www.elitetrader.com/vb/showthread.php?s=&threadid=23543&highlight=hershey+trading+method.
I called it the Jack Hershey Stock Trading Method, but in my mind, it is CANSLIM on nitro. You will find that it compliments what Grob just said. The method is very easy to understand and implement. It is based on sound criteria.
Good luck.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=23543&highlight=hershey+trading+method.
I called it the Jack Hershey Stock Trading Method, but in my mind, it is CANSLIM on nitro. You will find that it compliments what Grob just said. The method is very easy to understand and implement. It is based on sound criteria.
Good luck.
I agree with your comments, but there are some important caveats. One is not to forget the "M" in CANSLIM, which stands for market. WON is adamant in his book not to use this method during bear markets. Unfortunately IBD tends to ignore this a little. I think the system works pretty well in a bull market, but then so does everything else. The IBD website forums have a LOT of discussion on this issue and also on using the IBD100.