Canslim

Quote from kowboy:

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.
More...

I have done very well with it this year (CANSLIM) having my best year ever. It will be interesting to see what happens in a bear market. Of course, if you just truely follow what Oneil says you will be in cash during that time. I have modified it somewhat. EPS is very important to me, but RS is not so important. For example on 12-1 I bought EVG even though at the time the RS was I believe around 55. I also like to find stocks that are fairly thin and have a low PE, for example I am long BXX from $9.00 on 11/24 and RBIN from $14.25 on 12/8. I also bought ACH on 11/28 because it had a nice pattern and a very low PE relative to the SP500 and for its growth. I am no longer in ACH though because on 12/10 it had its largest volume of the move on a strong down day so I sold the close. I have looked at CANSLIM.net and do read their free report which I have gotten a few good ideas from it and will probably subscribe here shortly. I think that scanning through the IBD 100 is a good place to look for stocks each weekend if nothing else.
Brandon
 
I stand by the C.A.N.S.L.I.M. system, the most consistent and profitable investment tool i've ever seen and used. And i used to be a broker, provided great consistent returns for my clients, before the market bubble, during, and after.

But, that site is not by Bill O'niel, the guy who made the system. Go to www.investors.com
thats his site, the owner of Investor's Business Daily.
 
Do you folks adhere to his buy and sell rules? More specifically, do you take anything with an 80 or above and wait on a cup and handle formation? It seems like the hardest part of the system is determining whether the cup and handle is a good one or not.

If you deviate from his rules, I'd be interested in hearing what you do. Even if you don't, I'd love to see a chart where you bought and sold.

I've read his book during the bear market days. I never applied any of his techniques in the real world because I didn't like the subjectiveness of the cup and handle.
 
Quote from inandlong:

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.
More...

Hi Inandlong,

Your effort to "explain Jack to the people" has to be commended. In fact should we call this inandlong's work or Jack's work?

I must say that I am still left with a lot of hazy mumbo jumbo in Jack's vintage material. Allow me to give you an excerpt in the hope you can help me along a bit:

"The fractal change is based upon statistics that predicate that any loop filibration on one fractal can be terminated on the next faster fractal using the same rules. This is an abstract statistical method based on Alexander’s Method for least connecting systems for optimum system operation. A concurrent theorem on the migration of the market operating point and what the controlling facet is, is what establishes the market as a system of interrelated cells and how that connectedness may be optimized. One of the dimensions of the operating point matrix is the set of fractals."

This is complete hogwash! Don't tell me anybody can beat the market with such dope.

nononsense
 
Quote from Baruch:

A Canslim-metod without the RS? But RS is the center of the system.
More...

Unfortunately, CANSLIM has created a situation over the last twenty years in which prices are driven up in anticipation of earnings. By the time "EPS" is acceptable, the "RS" has priced the stock far beyond where it would have been when CANSLIM was first developed.

Find a year-old copy of IBD and look up those stocks with high EPS that have not begun their ascents. Then note their RS ranks. Applying what you know of charts and chart patterns, find those points at which one would most advantageously enter. You may be surprised.
 
This is another reason why I'd like to hear from some canslimmers and talk about their entries and exits. canslim sounds great on paper, but perhaps I'm just too dumb to make it work in the real world.

Quote from dbphoenix:

Unfortunately, CANSLIM has created a situation over the last twenty years in which prices are driven up in anticipation of earnings. By the time "EPS" is acceptable, the "RS" has priced the stock far beyond where it would have been when CANSLIM was first developed.

Find a year-old copy of IBD and look up those stocks with high EPS that have not begun their ascents. Then note their RS ranks. Applying what you know of charts and chart patterns, find those points at which one would most advantageously enter. You may be surprised.
More...
 
Quote from nononsense:

Hi Inandlong,

Your effort to "explain Jack to the people" has to be commended. In fact should we call this inandlong's work or Jack's work?

I must say that I am still left with a lot of hazy mumbo jumbo in Jack's vintage material. Allow me to give you an excerpt in the hope you can help me along a bit:

"The fractal change is based upon statistics that predicate that any loop filibration on one fractal can be terminated on the next faster fractal using the same rules. This is an abstract statistical method based on Alexander’s Method for least connecting systems for optimum system operation. A concurrent theorem on the migration of the market operating point and what the controlling facet is, is what establishes the market as a system of interrelated cells and how that connectedness may be optimized. One of the dimensions of the operating point matrix is the set of fractals."

This is complete hogwash! Don't tell me anybody can beat the market with such dope.

nononsense
More...

The market is one HUGE wave made up of smaller and smaller waves. Each wave can be seen on different fractals. There are waves on the yearly, monthly, weekly, 60 min, 30 min, 5 min, 1 min fractals etc.
Jack is explaining that if you have a signal on your trading fractal, you can zoom into the next faster fractal too give you an anticipational way too see how the signal is going too turn out on the slower trading fractal.

Your lack of understanding of what Jack sais does not make it hogwash. All this sais is that YOU cannot comprehend what he sais. Nothing more and nothing less. Be at peace nononsense. .......there are people who understand.
 
You must log in or register to reply here.
Back
Top