RE: [CANSLIM] clarification

From: John Maycock <jmvan@shaw.ca>
Subject: RE: [CANSLIM] clarification
Date: Wed, 12 Dec 2001 12:12:16 -0800

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This raises what is for me a very interesting question. What sort of
win/loss % and $ can one expect with a true CANSLIM strategy. By win/loss I
mean percentage of all trades that are winners versus percent that are
losers, regardless of amount. And secondly, what is the ratio of average
winning trades to losing trades, where both are expressed in dollars.

I have read, and expect that Canslim will have about a 33/66% win loss.
Accepting that, then we need to have a better than 2x gain on average for
all winners versus losers. What are peoples actual experiences, especially
for this year? And does anyone actually calculate this stuff for their own
accounts?

Again I seem to have an unspecified delay between the time I press the send
to the time it gets posted. It is very annoying. 12:10pm PST.

Thanks
John

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Tangen, Eric
Sent: Wednesday, December 12, 2001 11:46 AM
To: 'canslim@lists.xmission.com'
Subject: RE: [CANSLIM] clarification

Welcome to the club! Breakouts are a high risk and high reward strategy - if
you're batting .500, that's pretty darn good. You should expect 40% success
at finding successful breakouts long-term.

I just have to get this off my chest for the new subscribers...WON's 7-8%
stop below the pivot is a technical stop. It is a rule of thumb based on
volatility in the handle region before a stock takes off.

It is NOT A MONEY MANAGEMENT STOP!. If you put 7-8% of your trading capital
at risk on any one trade, you will eventually pay some really serious Wall
Street tuition on the path to becoming successful trader.

WON's work has virtually nothing in the area of money management (what he
does say is just plain outdated...by 5 stocks with 100k...more appropriate
to an era of high commissions and lower volatility).

Tharp's books are the best (only?) work in this area and should be required
reading before you head out to the great casino that is Wall Street.

ERIC TANGEN





- -----Original Message-----
From: larry l worden [mailto:worden33@juno.com]
Sent: Wednesday, December 12, 2001 12:03 AM
To: canslim@lists.xmission.com
Subject: [CANSLIM] clarification


Thanks Tom and Katherien
 I looked at DGO last week, expensive. I read HTMMIS and get IBD paper
and web sight. I am having trouble with BO. I am getting stopped out more
than 50%. thanks again I think I have the terms right.

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