From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #348 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk X-No-Archive: yes canslim-digest Monday, August 3 1998 Volume 02 : Number 348 In this issue: [CANSLIM] RE: [NON CANSLIM] earnings release dates and sec filings, and insider buying . RE: non [CANSLIM] Psychological aspects of trading. Acquiring a skill. [CANSLIM] follow through day confirmation [CANSLIM] PTII Re: [CANSLIM] Re: [NonCANSLIM] Ari, did you ever buy FINL? Re: [CANSLIM] PTII Re: non [CANSLIM] Psychological aspects of trading. Acquiring a skill. RE: [CANSLIM] PTII Re: non [CANSLIM] Psychological aspects of trading. Acquiring a skill. [CANSLIM] Re: non (CANSLIM) Psychological aspects of trading. Acquiring a skill. Re: [CANSLIM] [NOT] Psychological aspects of trading. Acquiring a skill. RE: [CANSLIM] follow through day calculation RE: [CANSLIM] follow through day calculation Re: [CANSLIM] [NOT] Psychological aspects of trading. Acquiring a skill. [CANSLIM] Re: exhaustion gap? ---------------------------------------------------------------------- Date: Sun, 2 Aug 1998 17:29:28 -0400 From: "Nelson E. Timken, Esq." Subject: [CANSLIM] RE: [NON CANSLIM] earnings release dates and sec filings, and insider buying . Thanks Frank! You really made my day! And all because I was silly enough to ask you a simple question... Oh well... and now back to losing money in the stock market. Nelson - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Mulack@aol.com Sent: Sunday, August 02, 1998 5:05 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] earnings release dates and sec filings, and insider buying . Holly Cow Nelson, you are a real winner. Your e-mail reminded me of Jr. High. Felt good to think about my youthful days. Frank D. Mulack - - - - ------------------------------ Date: Sun, 2 Aug 1998 17:33:35 -0400 From: "Nelson E. Timken, Esq." Subject: RE: non [CANSLIM] Psychological aspects of trading. Acquiring a skill. Unfortunately, the only way to learn some things, such as investing, is by doing them. And that involves risk, and losing money. Much the same way riding a bicycle the first time may involve the risk of falling off. You can't learn to ride a bike by reading a book. My approach is to always try to read about something first and then to try it for real, or to read about it, talk to someone who has done it, and then try it for real. In the case of Canslim, I'd read WON, then speak to others like the people in this group, and finally attempt to implement the ideas in a real time setting. Nelson - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Johan Van Houtven Sent: Sunday, August 02, 1998 1:30 PM To: canslim@lists.xmission.com Subject: non [CANSLIM] Psychological aspects of trading. Acquiring a skill. What do you think about the following: There is a skill you want to acquire. You want to be able to ride a bicycle. What is the best way to acquire that skill and become a good bicyclist? 1) Should you start by reading as much as you can about bicycling? 2) Should you get a bike and get on with it? 3) Should you find a trainer (mom, dad, brother, sister, best cyclist you know, ...) and get to it? Questions I'm asking myself and some comments about points 1 to 3: 1) Has anyone ever learned to ride a bike, i.e. acquired the skill, by reading books about it? Or can one safely say that by reading books about cycling one mostly acquires *knowledge* about riding a bicycle and not skill? Even after reading lot's of books about it? 2) Can you learn to ride a bike on your own, without ever having seen how one rides a bike? Possibly, but it seems to me that it would help quite a lot if you could see how it is done correctly. 3) Is getting a trainer to help you learn to ride a bike the best way to go *if* you want to acquire the *skill* ASAP? The better the trainer, the easier it will be? If I answer these questions myself, I can conclude that if I wanted *knowlegde* about bicycling I should reads lots of books about it. If I wanted to acquire the *skill*, i.e. be able to really ride a bike and enjoy it, I should find me a good trainer. Of course I can nitpick the details of this reasoning. But the more important question is: Is the above basically correct? Now comes the part that has to do with trading/investing. How does the above apply to learning about the psychological aspects of trading/investing? Can one learn it easily, simple by reading books about it? Does reading books about automatically give you the skill? Or do you primerily acquire knowledge, not skill, by reading these kind of books? Is one often merily *hoping* that one acquires the skills by reading the books? Have you ever felt really excited after reading a good book about investing, only to find it of little *practical* use as time wore on? I currently think that learning to cycle is about conditioning your body to have certain necessary reflexes (almost) automatically. And that learning the psychological aspecst of trading/investing is about conditioning your brain to have certain necessary reflexes (almost) automatically. Enough questions for one post, I would think. But I would like to take it one step further in one of the next posts: What does one answer if someone asks how he/she can best learn CANSLIM investing? Constructive critisism welcome. Johan Van Houtven / CLICK! N.V. - - - - ------------------------------ Date: Sun, 02 Aug 1998 17:54:13 -0400 From: Jeffry White <"postwhit@sover.net"@sover.net> Subject: [CANSLIM] follow through day confirmation > In what ways do you find all of this less vague and more reliable than > charts? > > - --Db Every way. Do you have a specific question? JW - - ------------------------------ Date: Mon, 3 Aug 1998 08:18:47 -0000 From: "James Adams" Subject: [CANSLIM] PTII Greetings all. It has been a while since I posted a stock, however one that i've been following posted great qtr #s on 7/30. The stock is PTII. I don't have an IBD so any input would be greatly appreciated. MS Investor has RS as 94 First Call & Zacks rate as a strong buy. Qtr ending 6/98 estimate was .24 and they reported .30 Latest News: PTII reported excellent second quarter results on Thursday. Net sales increased 95% to $19.4 million, compared to $9.94 million for the comparable quarter last year. Net income was $1,516,244, or $0.30 per share, compared to $1,033,025, or $0.23 per share, in the comparable year-ago quarter (excluding the non-cash charge). Including that charge, PTII had a net loss of $2,811,506, or $0.59, per share, in the year-ago quarter. Most recent consensus estimates for PTII's second quarter seemed to be about $0.24. For the first six months of 1998, net income was $2,248,509 or $0.44 per diluted share compared to $0.39 per share last year excluding the non-cash charge. Also during the quarter, PTII resolved the problems that were encountered in implementing the new enterprise software, SAP R/3. Now that the new system is running properly, PTII is beginning to become more efficient and able to do more with less people. In the last week, six administrative positions were eliminated. In the second quarter, selling, general and administrative expenses dropped as a percentage of sales compared to the first quarter. PTII expects increased efficiencies during the third and fourth quarter as they continue to cut unnecessary overhead. James W. Adams.......................Maysville, KY USA http://www.cris.com/~jimadams/ - - ------------------------------ Date: Mon, 03 Aug 1998 09:01:22 -0400 From: Ari Lawson Subject: Re: [CANSLIM] Re: [NonCANSLIM] Ari, did you ever buy FINL? TM wrote: > I see FINL had a good day. Did you buy it when you were talking about > it in June? > TM > > ---Ari Lawson wrote: > > > > > > > > Joe Barger wrote: > > > > > IBD Group R > > > > > > > ------------------------------------------------------------------------ > > > > > > Name: RealEstOps.lst > > > RealEstOps.lst Type: LST File > (application/x-unknown-content-type-lst_auto_file) > > > Encoding: 7bit > > > > > > Name: Ret-AppShoe.lst > > > Ret-AppShoe.lst Type: LST File > (application/x-unknown-content-type-lst_auto_file) > > > Encoding: 7bit > > > > > > Name: Ret-ConsElc.lst > > > Ret-ConsElc.lst Type: LST File > (application/x-unknown-content-type-lst_auto_file) > > > Encoding: 7bit > > > > > > Name: Ret-DeptStr.lst > > > Ret-DeptStr.lst Type: LST File > (application/x-unknown-content-type-lst_auto_file) > > > Encoding: 7bit > > > > > > Name: Ret-DrugStrs.lst > > > Ret-DrugStrs.lst Type: LST File > (application/x-unknown-content-type-lst_auto_file) > > > Encoding: 7bit > > > > > > Name: Ret-HomeFur.lst > > > Ret-HomeFur.lst Type: LST File > (application/x-unknown-content-type-lst_auto_file) > > > Encoding: 7bit > > > > > > Name: Ret-Mail&Dir.lst > > > Ret-Mail&Dir.lst Type: LST File > (application/x-unknown-content-type-lst_auto_file) > > > Encoding: 7bit > > > > > > Name: Ret-MiscDivr.lst > > > Ret-MiscDivr.lst Type: LST File > (application/x-unknown-content-type-lst_auto_file) > > > Encoding: 7bit > > > > > > Name: Ret-MjrDisc.lst > > > Ret-MjrDisc.lst Type: LST File > (application/x-unknown-content-type-lst_auto_file) > > > Encoding: 7bit > > > > > > Name: Ret-Restr.lst > > > Ret-Restr.lst Type: LST File > (application/x-unknown-content-type-lst_auto_file) > > > Encoding: 7bit > > > > > > Name: Ret-SprMkts.lst > > > Ret-SprMkts.lst Type: LST File > (application/x-unknown-content-type-lst_auto_file) > > > Encoding: 7bit > > > > > > Name: Ret-WhlsBldg.lst > > > Ret-WhlsBldg.lst Type: LST File > (application/x-unknown-content-type-lst_auto_file) > > > Encoding: 7bit > > > > > > Name: Ret-WhlsComp.lst > > > Ret-WhlsComp.lst Type: LST File > (application/x-unknown-content-type-lst_auto_file) > > > Encoding: 7bit > > > > > > Name: Ret-WhlsOffSp.lst > > > Ret-WhlsOffSp.lst Type: LST File > (application/x-unknown-content-type-lst_auto_file) > > > Encoding: 7bit > > > > Dear Joe, > > I'm missing A,B,C,D, of this list. could you please send it to me? > > Thanks Ari > > arilaw@erols.com > > > > > > - > > > >No i didn't.Thanks for the files.Ari > > _________________________________________________________ > DO YOU YAHOO!? > Get your free @yahoo.com address at http://mail.yahoo.com > > - - - ------------------------------ Date: Mon, 3 Aug 1998 07:07:49 -0700 (PDT) From: TM Subject: Re: [CANSLIM] PTII I looked and don't see PT Holding in either IBD or WSJ. TM - ---James Adams wrote: > > Greetings all. It has been a while since I posted a stock, however one that > i've been following posted great qtr #s on 7/30. > The stock is PTII. I don't have an IBD so any input would be greatly > appreciated. > MS Investor has RS as 94 > First Call & Zacks rate as a strong buy. > Qtr ending 6/98 estimate was .24 and they reported .30 > Latest News: > PTII reported excellent second quarter results on Thursday. Net sales > increased 95% to $19.4 million, compared to $9.94 million for the > comparable quarter last year. Net income was $1,516,244, or $0.30 per > share, compared to $1,033,025, or $0.23 per share, in the comparable > year-ago quarter (excluding the non-cash charge). Including that > charge, PTII had a net loss of $2,811,506, or $0.59, per share, in the > year-ago quarter. Most recent consensus estimates for PTII's second > quarter seemed to be about $0.24. > For the first six months of 1998, net income was $2,248,509 or $0.44 > per diluted share compared to $0.39 per share last year excluding the > non-cash charge. > Also during the quarter, PTII resolved the problems that were > encountered in implementing the new enterprise software, SAP R/3. Now > that the new system is running properly, PTII is beginning to become > more efficient and able to do more with less people. In the last week, > six administrative positions were eliminated. In the second quarter, > selling, general and administrative expenses dropped as a percentage > of sales compared to the first quarter. PTII expects increased > efficiencies during the third and fourth quarter as they continue to > cut unnecessary overhead. > > James W. Adams.......................Maysville, KY USA > http://www.cris.com/~jimadams/ > > > > - > > _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Mon, 03 Aug 1998 03:21:02 GMT From: musicant@autobahn.org (Dan Musicant) Subject: Re: non [CANSLIM] Psychological aspects of trading. Acquiring a skill. On Sun, 2 Aug 1998 17:33:35 -0400, you wrote: :Unfortunately, the only way to learn some things, such as investing, is = by :doing them. And that involves risk, and losing money. Much the same way :riding a bicycle the first time may involve the risk of falling off. You :can't learn to ride a bike by reading a book. My approach is to always = try :to read about something first and then to try it for real, or to read = about :it, talk to someone who has done it, and then try it for real. In the = case :of Canslim, I'd read WON, then speak to others like the people in this :group, and finally attempt to implement the ideas in a real time = setting. : :Nelson Personally, I think it's a lot easier to learn to ride a bicycle than to be an effective, strike that... a *masterful* CANSLIM investor. I don't want to get deeply into that, but I believe it is worth considering the notion that certain *personality types* are apt to clash with it while others will take to it. Different folks DO have far different personalities, eh?=20 Another notion that I don't recall bantied about on this board, but which does find some *discussion* in my inner dialog is the question of just how wise it is to adopt another person's system. This may be regarded as sacrilege in a forum the very existence of which is based on Wm O'Neil's system, but that doesn't suppress or answer this legitimate concern. As Wm Blake said, "I must develop my own system or be enslaved by another man's." It was something to that effect. Now, I have learned a lot reading O'Neil. He's a smart man. He does not lead a cult and I don't believe he is accumulating slavish followers. When you use O'Neil's methods (or anybody's, be they Sperandeo's or strictly your own) you must be willing to take responsibility for your actions.=20 Perhaps I should not speak for DB, but he posted quite some time ago (probably around 8 months or more) that CANSLIM should be best mastered by adhering to it fairly strictly until one understands it and is capable of applying its particular disciplines. I copied the post and will paste it below. The context was how and how much one should allow one's self to stray from CANSLIM tenants, and DB's position was that it's fine to develop one's own tendencies, but it is best to be *orthodox* until one *has it down*, as it were. Below is the original material (my pardons to DB for the piracy). Included is my response. I should have heeded my own words a lot better, because my performance from that point forward (10/6/97) until the end of the year was pretty much a total disaster. I'm doing better this year, but have my fingers crossed: I found out twice last year how fast you can lose your equity chasing rainbows. And it's beginning to look like it might be *that time* again. Dan - -------------------------------------------------------------------------= - ---- << While I'm at it, I do have a question. I get most of the concepts in the book, but one is bothering me. It seems that the "N" is not consistent with "C" and "A". If a company is coming out with a new product, isn't it going to take a while to show up in earnings? Is investing base on "N" just more speculative or do you wait until the earnings start to move? >> CS is not only an investment approach, it is a discipline. IMO, if you're new to investing, or at least new to CS, it's important to include all seven elements in your choices as well as learning the charting techniques required for selecting buy and sell points. Later, when you've acquired the discipline and the skills for investing in general and using CS in particular, you may want to experiment with fudging here and there. But to do so at the beginning can lead to serious errors. "N" has several aspects to it and is, in turn, one of seven elements. Don't select a stock just because "N" is there; select it because all seven are there, including "N". This helps you stay focused on the best of the best and not get distracted by speculative touts. - -----Db 10/6/97=20 My answer at that time: Well spoken, Db. I have clipped this and intend to reread it like a mantra -- over and over, hoping it will *sink in*! I think it characterizes my *recent* investment success and failure rather well. Of course, there *is* no perfect CANSLIM investment, but I believe that thinking of the technique as a comprehensive discipline is the best way to benefit from it. Thus IBD purports to be for the "disciplined investor."=20 Dan musicant@autobahn.org - - ------------------------------ Date: Mon, 3 Aug 1998 08:34:40 -0400 From: "Nelson E. Timken, Esq." Subject: RE: [CANSLIM] PTII According to the latest news, PTII just acquired a license to distribute the Spice Girls bicycle and helmet, and has received 3Mil in pre-order commitments. Chart fluctuates between 6 and 9, with peaks near the end of each earnings quarter. See: http://biz.yahoo.com/prnews/980803/ny_pti_hol_1.html Nelson - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of James Adams Sent: Monday, August 03, 1998 4:19 AM To: Canslim Subject: [CANSLIM] PTII Greetings all. It has been a while since I posted a stock, however one that i've been following posted great qtr #s on 7/30. The stock is PTII. I don't have an IBD so any input would be greatly appreciated. MS Investor has RS as 94 First Call & Zacks rate as a strong buy. Qtr ending 6/98 estimate was .24 and they reported .30 Latest News: PTII reported excellent second quarter results on Thursday. Net sales increased 95% to $19.4 million, compared to $9.94 million for the comparable quarter last year. Net income was $1,516,244, or $0.30 per share, compared to $1,033,025, or $0.23 per share, in the comparable year-ago quarter (excluding the non-cash charge). Including that charge, PTII had a net loss of $2,811,506, or $0.59, per share, in the year-ago quarter. Most recent consensus estimates for PTII's second quarter seemed to be about $0.24. For the first six months of 1998, net income was $2,248,509 or $0.44 per diluted share compared to $0.39 per share last year excluding the non-cash charge. Also during the quarter, PTII resolved the problems that were encountered in implementing the new enterprise software, SAP R/3. Now that the new system is running properly, PTII is beginning to become more efficient and able to do more with less people. In the last week, six administrative positions were eliminated. In the second quarter, selling, general and administrative expenses dropped as a percentage of sales compared to the first quarter. PTII expects increased efficiencies during the third and fourth quarter as they continue to cut unnecessary overhead. James W. Adams.......................Maysville, KY USA http://www.cris.com/~jimadams/ - - - - ------------------------------ Date: Mon, 3 Aug 1998 08:47:21 -0700 (PDT) From: dbphoenix Subject: Re: non [CANSLIM] Psychological aspects of trading. Acquiring a skill. <> When I first read Johan's post, I thought he was talking about investor psychology in general, that is, the psychological dynamics of all those other investors who make up "the market". If I misinterpreted his remarks (I no longer have the post) and he was talking about individual psychology, I suggest that anyone who's having a problem with this or who is simply curious about it look at Methods Of A Wall Street Master by Victor Sperandeo. The process of facing one's own dynamic--especially as it relates to money--can be a painful one, dealing as it does with one's feelings of self-confidence, competence and self-worth; one's attitudes towards money and success; one's ability to learn and to learn from one's mistakes; how easily one is persuaded by others; one's attitudes towards authority, etc., etc., etc. There's so much more to all this than just "being objective" or "banishing hope and fear". But, IMO, all of it must be addressed by anyone who wishes to be successful at directing his own portfolio over the long term. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Mon, 3 Aug 1998 12:38:53 -0500 (CDT) From: mckeener@ix.netcom.com Subject: [CANSLIM] Re: non (CANSLIM) Psychological aspects of trading. Acquiring a skill. Johan Van Houtven, People acquire skills best in different ways depending upon their learning styles and what works for them. Of course, one's financial situation would be important in the field of trading. I learn most effectively by actually trading because as I profit and lose, psychologically, the fact that I am using "real" money motivates me. A very successful fellow investor paper- traded for a year before he even considered actually trading. This worked for him. I tried it for a few months. It didn't work for me. Reading is beneficial for me because I enjoy reading. I want to avoid some mistakes (I've made more than a few) that experienced, knowledgeable professionals such as O'Neil will point out. Reading enhances knowledge and, as you know, knowledge is power. It isn't the only way to gain understanding. Videoptapes, audiotapes, computers, seminars, - whatever works for you. Oh yes, I have found some books to be of hardly any use to me, probably because of my personality, my way of doing things, not necessarily the fault of the author. If someone were to ask me the best way to learn CANSLIM, I would suggest following O'Neil's book and adapting it to their own comfort level based on discipline and sound strategy. No one can tell you EXACTLY how to do something. It just never is that simple. Everything requires hard work, time, commitment, some failure to learn more, and all these factors vary with individuals. Just a few thoughts quickly jotted down here. Open to more suggestions and opinions. Regards, Mary - - ------------------------------ Date: Mon, 03 Aug 1998 14:02:22 -0400 From: Tom Moulton Subject: Re: [CANSLIM] [NOT] Psychological aspects of trading. Acquiring a skill. mckeener@ix.netcom.com wrote: > Just a few thoughts quickly jotted down here. Open to more > suggestions and opinions. > I have read a few books (Not enough) but so far I have read two that i felt were worth reading more than once. Stock Market Miricles[sp] Wade Cook - I read it twice and it gave a beginner a lot of ideas of HOW you can trade. It was a good first book but dangerous if read alone. HTMMIS (WON) Three times... Biggest thing I got out of it was WHAT to trade... how to find stocks worth buying... I now need to find a WHEN to trade book... <<<<< ok ok here's the point>>>>> the books are nice, but you need to find the right books and then make sure you put it to pratice... some paper trade, some use cash for *all* their learning, I've been paper trading in one of the many internet stock games and I have found that helpfull. What ever you do you must treat the trades as if they were cash trades and do it day after day so that some of the decisions will become instinctive (8% sell stop for example) tom - - ------------------------------ Date: Mon, 3 Aug 1998 11:05:57 -0700 From: Mike Lucero Subject: RE: [CANSLIM] follow through day calculation Here are the results of my tactics. I sold 10% on Monday 7/27 (expecting a market rally), 10% on Tuesday, 40% Wednesday, and 40% Friday. If I had just sold everything at the close of Monday, I would be 10% richer. Mike On Friday, July 31, 1998 12:55 PM, Mike Lucero [SMTP:mikelu@foxinternet.net] wrote: > I would have been much better off to sell last week, but I missed the > signals, and now I'm trying to make the most of my positions. I think I sold > 8/10 today so far. > > I got out in time in April, and it feels much better to do that. > > Mike > > -----Original Message----- > > From: owner-canslim@lists.xmission.com > > [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tim Fisher > > Sent: Friday, July 31, 1998 12:04 PM > > To: canslim@lists.xmission.com > > Subject: RE: [CANSLIM] follow through day calculation > > > > > > Hmmm, I assumed you were using WON stops. Guess not. I was, and > > I'm decidedly > > O*U*T. > > > > At 11:29 AM 7/31/98 -0700, you wrote: > > >< > >150% > > >invested on Monday. I thought I'd do better by selling when stocks > > >invidivually (when each stocks rallied and failed, or broke local > > >resistance) rather than selling everything all at once. > > > > > >Mike>> > > > > > > > Tim Fisher, 1995 President, Pacific Fishery Biologists > > Ore-ROCK-On Rockhounding Web Site > > PFB Information > > mailto:tim@OreRockOn.com > > WWW http://OreRockOn.com > > > > - > > > > > > > - - ------------------------------ Date: Mon, 3 Aug 1998 11:47:15 -0700 (PDT) From: dbphoenix Subject: RE: [CANSLIM] follow through day calculation <> I hope you're not beating yourself up over it, Mike. This stuff is always clearer in hindsight. You could just as easily have used the distribution days on the 7th or 15th as an opportunity to lighten up. As O'N reminds us, the pros sell on the way up. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Mon, 3 Aug 1998 12:40:16 -0700 (PDT) From: TM Subject: Re: [CANSLIM] [NOT] Psychological aspects of trading. Acquiring a skill. I wouldn't buy either of these, but I am glad to have the opportunity to read them; I have them on interlibrary loan. I am reading , "Divining the Dow" by Maturi. He focus would be "M", although he is not CANSLIM. His idea is that investment strategies do not operate in a vacuum. He goes into technicals and indicators and tells about investment theories in general- weird and not so weird. Eller has "Trading Rules II". He has 50 "Rules" in which he explains how buyers and sellers might be analyzing a specific situation. "Right now I am on Rule 14: Narrowness Always Follows A Violent Market Move; thus, When Stocks "Mark Time," You do the same." He discusses the reassessment process that investors go through during this regrouping process. IMHO, other than O'Neil, Alexander Elder is the best for figuring out when to trade, ala Walter on our board. The book: "Trading for A Living". Martin Zweig's "Winning on Wall Street" explains how to spot market trends early, ala Jeffry. I own both these books and read Elder as often as I read WON. I usually use Zweig to look up comments about "M". - ---Tom Moulton wrote: > > mckeener@ix.netcom.com wrote: > > > Just a few thoughts quickly jotted down here. Open to more > > suggestions and opinions. > > > > I have read a few books (Not enough) but so far I have read two > that i felt were worth reading more than once. > > Stock Market Miricles[sp] Wade Cook - I read it twice and it gave > a beginner a lot of ideas of HOW you can trade. It was a good first > book but dangerous if read alone. > > HTMMIS (WON) Three times... Biggest thing I got out of it was WHAT > to trade... how to find stocks worth buying... > > I now need to find a WHEN to trade book... > > > <<<<< ok ok here's the point>>>>> > > the books are nice, but you need to find the right books > and then make sure you put it to pratice... some paper trade, > some use cash for *all* their learning, I've been paper trading > in one of the many internet stock games and I have found that helpfull. > > What ever you do you must treat the trades as if they were cash trades > and do it day after day so that some of the decisions will become > instinctive > (8% sell stop for example) > > tom > > > - > > _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Mon, 03 Aug 98 17:39:53 PDT From: "Walter Stock" Subject: [CANSLIM] Re: exhaustion gap? > Hi, Walter > > your wrote: > 'The Market column (Tuesday edition), > fully three are classic exhaustion gaps: WLA, CNF and FVB. > As Elder says, "exhaustion gaps appear at the end of trends."' > > Please favor me with your definition of "exhaustion gap". Hi Anthony, Sorry to be so long in responding, but I have been on vacation for over a week, and just got back to my keyboard. Looks like I didn't miss much of a market. My trading account is still 100% cash for now. I also moved some cash in my retirement account into bonds before going on vacation. I don't have a definition of exhaustion gap of my own, but just rely on Elder's. On page 99 of his book he says: " Exhaustion gaps appear at the ends of trends. Prices rise or fall for several weeks or months, and then gap in the direction of the trend. At first an exhaustion gap looks like a continuation gap - a leap in the direction of the trend on heavy volume. If prices fail to reach new highs or new lows for several days after the gap, it is probably an exhaustion gap. An exhaustion gap is confirmed only when prices reverse and close it. This gap is like the last spurt of a tired athlete. He springs away from the pack but cannot sustain the pace; as soon as others close in on him, you know that he will lose the race." On the next page Elder offers ideas about how to trade them: " Exhaustion gaps offer attractive trading opportunities because they are often followed by violent reversals. When you identify an upside exhaustion gap, sell short and place a protective stop above the latest high. Once prices begin to slide weak bulls will start bailing out. Stay short as long as prices continue to reach new lows and cover the day after prices fail to make a new low...." Elder has a lot more to offer on this kind of gap and on other kinds as well. Hope this helps, Walter Stock (yes, that really is my last name) Oakville, ONT - Canada - - ------------------------------ End of canslim-digest V2 #348 ***************************** To unsubscribe to canslim-digest, send an email to "majordomo@xmission.com" with "unsubscribe canslim-digest" in the body of the message. For information on digests or retrieving files and old messages send "help" to the same address. Do not use quotes in your message.