CANSLIM works if you're willing to put the hard work in. It's not something that can be mastered with one hour of work. You have to be constantly scanning charts and fundamentals to narrow your list down. All this work has paid off in my ability to pick the proper point of breakout, cause they're not always at 52 week highs. Recent picks have been VIP and MBT. VIP is moving, but MBT is pulling just under the breakout. MBT I'm almost ready to get out of.
The problem these days, is a stock can run up 5 point from the breakout, then pull in on light volume, and then, WHACK!!! They kill it and it undercut's the 7 - 8% stop loss area.
CANSLIM has worked in every decade since O'neil put it together. I think we just need a substained bull market, nothing crazy like 98 - 00, just a normal up trend that eveyone trusts.
My biggest problem in the past was not cutting the loss at 8%, but taking bigger losses. I did an analysis of my trades, and if I cut my losses to the 8% level, I would actually be up a little in this bear market in my long term account. If I actually learned to spot weakness in the stock before the reversals, I would be up alot. This is where my focus is now, and the last three months I've gotten better at it. I think the biggest metal block for me right now is to forget the returns that CANSLIM stocks returned from 98 - 00, and just focus on the fact that returns will be much smaller in these times. So I'm trying to beat this into my head, just like I did with loss cutting rules for day trading.
The problem these days, is a stock can run up 5 point from the breakout, then pull in on light volume, and then, WHACK!!! They kill it and it undercut's the 7 - 8% stop loss area.
CANSLIM has worked in every decade since O'neil put it together. I think we just need a substained bull market, nothing crazy like 98 - 00, just a normal up trend that eveyone trusts.
My biggest problem in the past was not cutting the loss at 8%, but taking bigger losses. I did an analysis of my trades, and if I cut my losses to the 8% level, I would actually be up a little in this bear market in my long term account. If I actually learned to spot weakness in the stock before the reversals, I would be up alot. This is where my focus is now, and the last three months I've gotten better at it. I think the biggest metal block for me right now is to forget the returns that CANSLIM stocks returned from 98 - 00, and just focus on the fact that returns will be much smaller in these times. So I'm trying to beat this into my head, just like I did with loss cutting rules for day trading.