William O'neil ''canslim'' method

Quote from quickTRADER:




JACK , DAMMIT MAN , WHAT IS YOUR PROBLEM ? I MEAN , YOU CANT ANSWER A DAMN QUESTION CAN YOU ?? ''SHOEBOY'' JUST ASKED YOU 3 STRAIGHT , CLEAR CUT QUESTIONS AND YOU DIDNT ANSWER ONE OF THEM WITH A STRAIGHT ANSWER. YOU CONTINUE TO BEAT AROUND THE BUSH. (IF THAT) SO FROM THESE POSTS OF YOURS I'M SURE THAT EVERYONE REALIZES THAT CANSLIM DOESNT WORK IN TODAYS MARKET !
I'LL GIVE YOU THE BENEFIT OF THE DOUBT AND TAKE IT THAT SINCE YOU WERE INVOLVED WITH CANSLIM'S SERVICE YOU DONT THINK IT WOULD BE RIGHT TO JUST SAY '' NO, IT DOESNT WORK !'' ,, BUT I GUESS I KNOW WHAT YOURE TRYING TO SAY
More...


There are many profitable methods of trading... what is important is trading a method that matches your personality.
 
Quote from trend_guy:




There are many profitable methods of trading... what is important is trading a method that matches your personality.
More...

I think it is worthwhile to enhance your approach iteratively with stuff that you run across from other's work in investing.

By setting up an approach at some point, you definitely then are in a position to improve as you learn more.
 
jack,
i have a couple questions for you. i got introduced to canslim about a month or two ago through my girlfriend. ive read the book and also have ibd. ive just recently started using the system to pick out some stocks, both weak and strong. i definetly refer to my own technical analysis before doing any buying or selling.

i am wondering if you pick out any weak stocks and use them on the short side ?

also if you are on the long side , whats your average lenth of time being in the trade ? ( i.e... do your trades stay open on average 1 wk, 1 month , 6 wks ?? -- just wondering to give me a better feel )

thanx -------------tko

i may have a few more questions later, im still reading your post because you use big words and im slow ! :D :D :D
 
I know others on ET would disagree, but I agree with you actually about not getting too specific. I actually have come up with my best ideas and learned the most by just experiementing. I personally would never follow someone else's algorithm or methodology exactly: I actually don't want to make money to just make money. I want to create something of my own that makes money. Otherwise, I might as well open up flower shop or pest control business.

Anyway, I just want to know that someone is making money using the underlying principles of CANSLIM even in this mkt. Here's a few more questions:

1. Sounds like you use a modified universe of CANSLIM stocks. My question is this: are you tweaking this or significantly changing it? In other words, O'Neill recommends considering only the best stocks in terms of RS, earnings growth, instit. ownership, etc. Do you still generally hold to that? It sounded like you were saying that you generally believed that you had to make these requirements even tighter rather than modifying or adding to them?

2. I'll have to look into "rally market analysis" - I can't remember what he wrote about that.

3. This ties into the last post: Are you saying you often use shorter time frames for CANSLIM somehow? This idea interests me because I know many of the top earners of this quarter will fail on the way to next quarter (or they may get a negative analyst review). I actually looked into this but I felt that any backtesting I did was biased because I was by definition investigating stocks that already had fantastic earnings.
 
Quote from TKOtrader:

jack,
i have a couple questions for you. i got introduced to canslim about a month or two ago through my girlfriend. ive read the book and also have ibd. ive just recently started using the system to pick out some stocks, both weak and strong. i definetly refer to my own technical analysis before doing any buying or selling.

i am wondering if you pick out any weak stocks and use them on the short side ?

****** I use the sort for three things: stocks that are just beginning their run up; stocks that are going to run the next day and stocks that are going to go in two or three days.

also if you are on the long side , whats your average lenth of time being in the trade ?

**** I trade the natural cycle. It is 6 to 8 days and about a 20% gain in that time. I shoot for about 10%

( i.e... do your trades stay open on average 1 wk, 1 month , 6 wks ?? -- just wondering to give me a better feel )

The duration question is the key to making money. A person put my stuff in C language and used it for 6 months. His return was 11.1 per cycle and his cycle was 6.6 days. These are averages. Plug them into the compound interest formula so you can see what your personal capitalization looks like.

thanx -------------tko

i may have a few more questions later, im still reading your post because you use big words and im slow ! :D :D :D
More...

It is very useful to process stuff thoroughly and get the bits and pieces to sort of fit into what you do. Once you have written out your approach. (like the person put it into C language, then you can see the way add ons will work.
 
Quote from ShoeshineBoy:

I know others on ET would disagree, but I agree with you actually about not getting too specific. I actually have come up with my best ideas and learned the most by just experiementing. I personally would never follow someone else's algorithm or methodology exactly: I actually don't want to make money to just make money. I want to create something of my own that makes money. Otherwise, I might as well open up flower shop or pest control business.

***I agree. I always have something going on like that. Now i am working on a practical use of Franco Modigliani's Life-cycle Hypothesis for which he won the Nobel Prize. It is working out fine so far with the usual glitches.

Anyway, I just want to know that someone is making money using the underlying principles of CANSLIM even in this mkt. Here's a few more questions:

1. Sounds like you use a modified universe of CANSLIM stocks.

*****yes.

My question is this: are you tweaking this or significantly changing it?

** I use very tight standards compared to WJO and his protege's. At one workshop they were announcing 8 new up coming C&H's. They asked the audience about them and if anyone had noted them. I happen to own 5 of the 8. the person running it then asked my name. He had asked me by email to review some stocks for him prior to workshop. I was regarded ,by him, as the most thorough person he had ever run into. It utrned out that my reports to him followed my recommendations without exception. I operate in a mode of anticipation and I do not believe prediction is possible.

In other words, O'Neill recommends considering only the best stocks in terms of RS, earnings growth, instit. ownership, etc. Do you still generally hold to that?

**** exactly and precisely.

It sounded like you were saying that you generally believed that you had to make these requirements even tighter rather than modifying or adding to them?

Yes I do. For example I use EPS and RS combined and I expect them to be 90 or above in a normal market. You can use lesser values to get the result you desire in poor markets. Thus EPS and RS combined become a measure of the market. Who could ask for any more?

2. I'll have to look into "rally market analysis" - I can't remember what he wrote about that.

*** see page 59 in the 1995 edition. lol from memory.

3. This ties into the last post: Are you saying you often use shorter time frames for CANSLIM somehow?

*** Yes. I feel it is important to appreciate capital as fast as possible since time is not recoverable. By testing the appreciation on various fractals, you can conclude which one makes the most money. You use the compound interest formula and optimize the tradeoffs between prfit per cycle and cycle duration. It is a neat thing because to optimize you maximize and minimize at the same time.

This idea interests me because I know many of the top earners of this quarter will fail on the way to next quarter (or they may get a negative analyst review). I actually looked into this but I felt that any backtesting I did was biased because I was by definition investigating stocks that already had fantastic earnings.
More...

***Backtesting is a strange mythical thing. I can explain why but it is self evident after a while. It is best to just get to that place by the route you choose. Making money is a very stimulating process and the focus gets to KISS when you are an expert. When we get to market limitations you will see what I mean.
 
Thanks for the elaboration. Again, I appreciate the input. But of course I still have a number of questions if you don't mind:
1. What are C&H's?
2. Do you use additional fundamental/balance sheet analysis to tighten your universe?
3. Do you use more "subjective" (by that I mean non-numerical) such as "quality of mgt" and "market leadership" to tighten your universe?
What do you mean by fractal? I understand the basic idea of a fractal: that the smaller part is similar to the larger, etc.
5. Are you willing to buy shortly before an earnings release?
 
Quote from ShoeshineBoy:

Thanks for the elaboration. Again, I appreciate the input. But of course I still have a number of questions if you don't mind:
1. What are C&H's?

Sorry about the shorthand. WJO researched the IT and found a formation that was the most convincing of all to him and his staff. It is quite a story. I can see that you missed it entirely maybe. Cand H is cup and handle. I could explain it's eeesnece and if you have googled my equations you see that i bring up all C&H's long before they appear in the media and on the web.

I mentioned being in 5 of 8 of them prior to the upcoming signal tht was going to happen. As quicktrader pointed out over and over to me, I am not dealing properly with CANSLIM. The way I select and deal with a universe is something that get potential cup and handles into the mix before they are identifyable it turns out. Also I trade them to make money fromthe point they reach the bottom of the cup instead of the handle BO. How dumb can I be? Just ask him. He may think he is quick. He is the opposite of half slow to me as you can now see.

2. Do you use additional fundamental/balance sheet analysis to tighten your universe?

****Nope. CANSLIM has it all under control. I do add A/D though to score stocks using three variables: P, V, and A/D. This is where the "Tomorrow's Newspaper Today " comes from. Users made up this descriptor for my stuff. The C&H early entry is an axample. I was requested to reduce the whole C&H to math but I didn't get around to it as a priority.

3. Do you use more "subjective" (by that I mean non-numerical) such as "quality of mgt" and "market leadership" to tighten your universe?

The universe I am looking for from CANSLIM is a sort that gives me three sub groups in 5 seconds of looking at 16,000 stocks. The three separate groups on one list are: stocks breaking out (7's); stocks about to breakout (0's) and stocks almost getting ready to breakout (1's). By scoring these as days pass you just see making money in slow motion.

What do you mean by fractal?

*****Fractals are bar durations. I go from 0 to infinity in seven steps. The ratio between fractals is sort of constant (This means something mathematically). Some of them are 1, 5, 30 ,daily, weekly, monthly and quarterly. I trade commodities on 5, and 1 and I trade stocks on 30 and 5. My income ratio is 50 to 1 comparing commodities to stocks. Stocks is where I park profits that i keep.

I understand the basic idea of a fractal: that the smaller part is similar to the larger, etc.

****Oh yes you have discovered something about the market almost no one realizes. You will come to know that any operating point, i. .e. choosing a particular fractal gives you the same oppotunity to make money as any other just because of the facts that the market and it's microcosms all operate in the exact same manner. I found out all I am telling you over about 50 years of iterative refinment. My forte is being very very well equipped mentally. So I am a systems oriented person; I deal with three things: structure, process within, and the results of the process.

The pairs of fractals allow you to anticipate with the faster and trade on the slower. You choose the slower because it makes the most money.

5. Are you willing to buy shortly before an earnings release?
More...

LOL. Actually I am neutral biased. I sholdn't be I know because the ratio of long to short is 27 to 8 (two cubes) in time. You are long biased and choose that for whatever reasons.

For fun when I was young I traded around the IBM Board Economic committee meeting. IBM gave me stock purchasing discounts and at that time they had 80% of the world market so splitting the stock ws a constant necessity to carry out their policies. I knew this and so I traded accordingly. Today I do not know what a stock does that I own or trade.

My test of my methods among others is SEC citations that I get via my broker. The broker gets upset but it all works out. Five citations a year is my record.
 
IM THE DUMB ONE ??

LISTEN TO WHAT YOU PREVIOUSLY WROTE ........ YOU SAID THERE ARE 3 SEPERATE GROUPS YOU GO BY

ONE IS ''STOCKS BREAKING OUT''

THE OTHER TWO SAY '' STOCKS ABOUT TO BREAK OUT '' AND ''STOCKS ALMOST GETTING READY TO BREAK OUT '' LOL LOL

WHAT THE HELL IS THE DIFFERENCE BETWEEN THOSE LAST TWO ??
NOTHING AT ALL, YOURE JUST A MORON !



TRUST ME, IF IM ''ABOUT TO'' SLAP YOU AND IF IM ''ALMOST GETTING READY '' TO SLAP YOU , , , , ITS THE SAME THING !! :mad: :mad:
 
You must log in or register to reply here.
Back
Top