Paper Consolidation Trading Journal

almx said:
The CANSLIM is mainly to have a pool of stocks that are solid and trending in a bull market, trying to put more chances on my side when I enter, then I solely play any consolidation in that up trend, that's all.

Here is a "book" example of what I mean, Arista Networks, a perfect CANSLIM stock with a strong up trend since 2023 with pullbacks to the 150 day EMA, some were tradeable, some other not unless you were only going to buy and hold...

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How the hell was QUIK shorted?
CANSLIM doesn't appear to be a good system.

You don't want a system with < 10% reliability.
 
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almx said:
I don't know what you smoke but it looks like solid stuff, keep going...
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Well. Then you should invest very heavily in QUIK.
It is your money anyway.

Some investors even invest in a solid stock with their life savings and spouse life savings and parents life savings.
 
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3. FLXS, Flexsteel Industries

More paper trading with this new and thinly traded micro cap which is in its first consolidation after maybe entering a fresh uptrend.

Long @ 33.00 / Stop Loss @10%

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5. ACLX, Arcellx Inc.

This one has broken two small bases at what could be the end of its consolidation, it was time to get in.

Long @ 57.35, Stop Loss 10%

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6. DAVE, Dave Inc.

Broke a small base near EMA150 and its more recent down trend.

Long @ 34.35, Stop Loss 10%

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If I might throw a little cold water on your picks. A quick look from my perspective and I wouldn't be interested in any of them

They say nothing good happens under the 200 day ma. that eliminates PLAB & QUIK as stocks I'd consider buying at this time.

FLEX lacks volume and although FROG has been trending up lately it still has a lot of overhead.

If you'd like I can go into more detail. It's way easier to tear other peoples picks apart that to make your own. :)
 
deaddog said:
If I might throw a little cold water on your picks. A quick look from my perspective and I wouldn't be interested in any of them

They say nothing good happens under the 200 day ma. that eliminates PLAB & QUIK as stocks I'd consider buying at this time.

FLEX lacks volume and although FROG has been trending up lately it still has a lot of overhead.

If you'd like I can go into more detail. It's way easier to tear other peoples picks apart that to make your own. :)
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No problem, I'm always open to constructive discussion.

I know, if I understood well, that you are more in strong stocks that have proven record of past performance, fundamentally, generally speaking, technicals sooner or later follow fundamentals. I'm more of a momentum trader so if the stock looks promising and has acceptable fundamentals, to put some more chances on my side, I trade that consolidation setup, that's all.

I also don't like when stocks are under the 200 day EMA but I have seen weak stocks consolidating below it before strengthening their trend and then almost never touching it, that's why I give them a chance. Look at ANET chart in post #10 between June 22 and Feb 23, it did just that 3 times! And look at where it is today!

Agree that Flex is a thinly traded stock, it has only 3.7M float shares which is really very low and it's a paper trade so I don't know how my order would have been filled but I don't think that absolute volume is a parameter in itself to prevent it to run.

I don't know what you mean by "overhead" in FROG, for me fundamentally and technically it checks all the boxes, maybe you could elaborate on that if you wish.
 
almx said:
I don't know what you mean by "overhead" in FROG, for me fundamentally and technically it checks all the boxes, maybe you could elaborate on that if you wish.
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By overhead I'm talking about all the traders that bought at prices higher than today and are waiting for the stock to get back to break even. It applys to all the picks not only frog.

I like to see consolidation closer to the highs. Consolidation after a down trend needs a catalyst to change the trend. The picks you have are all moving contertrent to the general market. You have to ask yourself what will cause them to turn around.
 
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