here's the graph.
William O'neil ''canslim'' method
- Thread starter TKOtrader
- Start date
here's the graph.
GEEEEEEEEEZ THIS GUY JACK IS A COMPLETE WEIRDO !!!
:eek: :eek:
I DONT RECALL READING ANY OF THAT NONSENSE IN THE BOOK !
:eek: :eek:I DONT RECALL READING ANY OF THAT NONSENSE IN THE BOOK !
Quote from quickTRADER:
GEEEEEEEEEZ THIS GUY JACK IS A COMPLETE WEIRDO !!!
I DONT RECALL READING ANY OF THAT NONSENSE IN THE BOOK !
That confused eek stuff is a hoot. Is there a hoot. I would love to not give one to you.
Thx for the charts - they helped a lot. I think I'm starting to see what you're getting at if all of this ties into C&H's. The one thing I'm curious about is how common this is - I'm going to look at some of my previously IBD-chosen charts and see if I can make some connections.
1. I went back through and noticed how often the price and volume couple and decouple from themselves in the IBD stocks according to the pattern that you left in that pic. But here's what's confusing me: the IBD stocks seem to rarely follow a nice, neat bowl or saucer shaped pattern. The great majority of time it was more a sharp "V" or drawn out "W" or just dead. This surprised me because I know one of your philosophies is to make $ as fast as possible and many of these seem quite protracted. (Keep in mind that for a few more months I'm stuck as primarily long-only and daily.)
2. Also, if you have time can you pm or post the best ibd sites (unless it's WJO's). Last time I chose my universe I went thru an IBD newpaper by hand and manually typed in the tickers I wanted. Painful! I'd like to find a site that will let me enter the values I want for RS, Earnings, etc., etc. for screening.
Thx.
2. Also, if you have time can you pm or post the best ibd sites (unless it's WJO's). Last time I chose my universe I went thru an IBD newpaper by hand and manually typed in the tickers I wanted. Painful! I'd like to find a site that will let me enter the values I want for RS, Earnings, etc., etc. for screening.
Thx.
Okay . The IBD thing of cup and handle is an intermediate trend thing. I actually trade shorter cycles and cup and handle is overlain on some of them if their quality is high enough.
Do sorts using CANSLIM criteria at stocktables.com.
You have to set up the sort properly. We can educate quicktrader with this too. He knows it's weird to make money fast and he hasn't read between the lines on anything he tells us. (I'm just baiting him for laughs cause I know he could become a millionaire if he turned his mispent energies to it).
The sort goes like this. It is based on canslim so you just use the parts to get a list. The list will have 7's at the top; 0's at the bottom and 1's in the middle. The only other list you need is what you own.
So we have stocks that are turning up rapidly (7's). We have the list to watch that is getting ready to turn up (0's). and we have the list that is going to become )'s. (1's).
You have to admit this is a neat situation and it is derived from another method that was invented recently. I used to use TC2000 ver 3.0 for this but TC2000 shut down it's better capabilities at Y2K to pursue making money selling data. Nowadays most data is free so they went the wrong way down a path.
Anyway, there are many ways to get a small universe of stocks that make money at a killer pace.
To get the list in 5 seconds off stocktables.com you sort as follows. determine to get a list about 100 to 150 stocks long. to do this you adjust the length by doing a quality constraining effort. Set EPS and RS at 90% to start. The list will be too short. Make sure you set price at 10 bucks or more from the start as well.
Repeat loosening the EPS and RS until the list gets longer.
Okay no always sort the list by increasing volume.
This is to get the groupings to work out according to the scoring numbers.
This makes you a millionaire.
I will fill in some details to help more.
the fact that you have lists of BO's (the 7's) let you enter at just the right time.
The fat that you have a list of 0's is great because they are getting ready to BO.
Knowing ahead of time that a stock is going to go up is one of the most important things to know if you are intending to make money in the market.
About 1957 or 58 I thought of this as a way to operate. All Ihad to do was figure out how to do it.
That is what makes me so weird. I actually spend time figuring out stuff correctly.
When TC2000 and CANSLIM came along many years later, all I had to do was apply the simply idea of know what was going to happen ahead of time to those concepts. I do it for each invention that comes along and it always works once again.
When you do the sort, list the stocks on four sheets like the one I attached. Just check the top line for the name of the list.
you can use the scoring first left columns to score each day as the cycle goes along. All the other columns you can evaluate on clearstation where you set up four portfolios corresponding to the four lists: 7's, 0's, 1's, and owned.
You carrosel through the portfolios looking at the daily charts and fill in the columns. Soon everyday you will be tooling away with "buy" and hold and sell lists. Those are the three words you put in the action column on the right.
It is amazing to have a daily plan that every day makes money.
I will get into some other details in my next post following this one
Okay now you have a short cut to getting the lists at stocktables,com. And you have them in a neat order for what is happening.
This really solves a lot of problems.
A new one comes up however. This listing really shows you how much moneyis always everyday to be made.
I like being wierd this way.
It turns out that beginners make about half the potential (10% of 20%)on eahc cycle and the cycles turnout to be 6 to 8 days long. A typical 6 months example is 11.1% and a hold of 6.6 days for a starting person. after a while 30% amonth is what to look for if you are not mentally challenged for seeing stuff.
To sort out the better stocks from the excellent universe is pure pleasure. You are focussed on an excellent list that is derived from the best EPS and RS percentiles. we are in heaven quality wise and now we turn to zeroinf out risk using ewxcellent stocks.
This is the weirdest place of all to be as quicktrader would pounce in here and tell us all. What a fart he must be.
Look at the attached work sheet below. Use it with your clearstaion porfolios.
The test of quality for making money is this:"does the stock do what we want 5 times in 6 months?"
What do we want? Hey we want 6 to 8 day cycles (half up cycles) that move 20% each time. They have to follow the P, V relation as well. See the scoring chart so you know what that is.
these are obedience trained puppies if there ever were ones.
record on the excel sheet the five cycles. the sheet rank their prformance comparatively.
Hooray. Write this performance rank on your DAL Daily Analysis log. You do this so you know among the Action column "Buy" stocks which one is better than the rest for making money.
Whjat did quicktrader discover. He found out that scoring wasn't even in the book he hates to read. the CANSLIM is just what the public uses to do their thing. For us it is just a stepping stone to getting a focus to really pull down the marbles.
If you are a knothead, you don't get very far in life. you have to work at making the proper tools to get the job done.
The excel sheet sharpens your pencil to choose among the timely excellent stocks from your super micro universe.
Turn yourself loose with this stuff for six months.
There is no way a professional salary in any profession can match this way of operating in any profession whatsoever.
Why would any jerk post on these threads such dumb stuff as quicktrader.
It is clear here now that I answer questions asked of me. And it is equally clear that what I am suggesting is very valuable thoughtout stuff.
this quicktrader stuff is a lot of crap from a jerk.
Very interesting. I'm at work so I can't ask much, but one question: you obviously feel that if a stock exhibits five good cycles in about six months, then generally it will do so again on an ongoing basis? Don't fresh market conditions, earnings reports, etc. tend to alter this. I mean one example is a stock can go into a period of channeling/accumulation for months and months. I guess what I'm asking is if these superchanged issues tend to be consistent movers?
Yes things are always changing and you have to focus.
what it comes down to is continually eliminating choices from your lists. there is so much opportunity once you recognize how to make money, sooner or later you have to narrow your options one way or another.
The conversation is going to turn to this basic issue. How it is handled it different than most people think.
You learn that things go just like clockwork. Like today, everyone was pulling down 6 or more % on just about everything. This is a three beta world for rich people.
So what does it come down to?
the answer is deviations from the normal. They are called flaws.
Once you get in the groove with performance; you are in a placewhere operating flawlessly is the game plan.
Imagine backtesting for flaws in your operations. LOL this isn't even in the backtester's vocabulary.
Once you learn to use clearstaion portfolios and carrrosel throught the foure groupsof port folios. You will see that you can fill in stuff as fast asyou can write for nornal operations and sequences.
Zingo!!!! When you begin to expect perfection (and you aren't in a place where you even expect it yet and you are looking for reasonsstill as to why things don't work) and you are making money inthat venue everyday and continually, you then are able to apraise exceptiond to perfection. These flaws stand out so pristeenly.
Look at the KISS conversation between the berry and the trader. As they agree nothing is going on in the ES stochastics adventure, they are so far away from about 8 nuances in the trading menthod that came up that they can't approach an iterative refinement process as yet using backtesting. How could they ever getto using flaws (marginal analysis) as a refinement technigue for fixing the excel spread sheet ranking process.
Look at the bottom of the excel sheet. the averaging of daily change for ten values (move the decimal point in the sum to get the answer) isn't the focus. Second derivatives of statistics that perform like calculus is.
You are shifting from screwed up macro analysis to very very skewed universes to optimize capital appreciation. you have to imagine that the propositions offered in these thread contributions are coming from guys who guest lecture all around the place at grad business schools and who expect the folks in the seats to get off their mental tails to get into the groove.
Making money is a lot different than first meets the eye. Some of the SEC citations hershey has gotten from the mediocre tracking of the SEC have been major laughs in the halls of academia. they get some ,as they say, "priceless learning experiences' when they punch his ticket by making mistakes with their silly analytical stuff.
He trades ahead of the curve and to them what he does shows up in multi accounts as insider trading. The actual fact is that the trades are in flawless venues where prior measurements put you in a place that blows out the normal expectations of anyone monitoring the market for anomolies like he creates.
You are in for a real treat if he lays out the whole nine yards.
jack- prior to my daytrading, I was just starting to make money swing trading. I noticed that some of my IBD type stocks followed nice cycles and I made money in them repeatedly while other ones just never worked for me. So what you say rings as truth and very good information. I hope my research and trading prove what you say is still correct. In which case I thank you in advance.