Canslim

[billpritjr]

DB

true, and that is in fact my trading technique. I however, do indeed agree with most of the CANSLIM methods and was sharing my feelings about CANSLIM with the forum.

That is what makes trading great, like in the Market Wizards books, each successful trader will find his own method that he is comfortable with.

see ya

 

[Baruch]

Thanks for the charts. Do you have more?

 

[Baruch]

Look af this:

http://www.canslim.net

 

[Baruch]

I the first Market Wizards there are interviews about CANSLIM with William O'Neil and his follower, David Ryan.
Ryan says: "I learned that most of our greatest winning recommendations started off with prices under thirty times earnings. O'Neil says the P/E ratio is not important. I think it is, in that your sucess ratio is a lot higher on lower P/E ratio stocks".

 

[Brandonf]

Quote from Baruch:

Thanks for the charts. Do you have more?

Loads more. Im just getting ready to leave for another Xmas get together. If there is interest I can post a few more when I return.

brandon

 

[billb2112]

Would love to see some of your entry and exits if you don't mind.

Quote from tiocsti:

I don't use the cup & handle formation, as it's subjective. I've replaced some of the canslim criteria with other technical criteria. I don't use follow through days or distribution days either, I have other market timing criteria.

The basic concepts of canslim I have not changed though. Just modified some of the technical criteria and added a bit more in terms of risk management and positional sizing (mostly using fixed fractional betting, volatility based stops, a portfolio low water mark to go to cash for a defined period of time a la elder, and a maximum outstanding amount of risk at any one time.

WON's big weakness is in sell rules, he has dozens and dozens of them. The rule of taking most of your profits at 20% unless the stock made that gain in a very short time is a good one I think, but i've just used a simple trailing volatility stop. It's simpler for me to manage that.

 

[Baruch]

Yes, we will love to see some more charts, when your back.

 

[tiocsti]

Would love to see some of your entry and exits if you don't mind.

I use point and figure charts. A buy signal followed by a 3 box reversal. The following charts illustrate this pattern:

Note that the M part of my system is indicating a position in cash, so I would not be taking these trades. Also note that I use P&F for entry, but not for exits -- I use chandelier exits and profit targets for exits.

 

[FuturesTrader71]

Great discussion. I have just recently come across the IBD100 and canslim. This thread had a lot of great insights that still apply today. Thank you all for sharing your thoughts.