AW: [CANSLIM] Point of View: Why bother with fundamentals?

From: Andreas Himmelreich <judgejimmy@web.de>
Subject: AW: [CANSLIM] Point of View: Why bother with fundamentals?
Date: Tue, 18 Dec 2001 20:31:44 +0100
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You might be able to trade very profitable. You might even find another 
CISCO like this, but the fundamentals give you the conviction to hold on to 
a star ...

> -----Ursprungliche Nachricht-----
> Von:	Gene Ricci [SMTP:genr@swbell.net]
> Gesendet am:	Monday, December 17, 2001 10:32 PM
> An:	canslim@lists.xmission.com
> Betreff:	Re: [CANSLIM] Point of View: Why bother with fundamentals?
>
> Tom, I spoke with WizeTrade a few minutes ago and they told me that 
fundamentals were required  for position trading (1 - 4 months+). One of 
their most successful position traders selects his  candidates from Daily 
Graphs AFTER they pass the following criteria:
>
>  i.                STOCK PRICE BETWEEN $10 AND $60
> ii.            AVERAGE VOLUME >= 400,000 shares per day
> iii.        TIMELINESS = A
> iv.            ACCUMULATION = A or B
> v.                SMR RATING = 60-99 or (A/B)*
> vi.            GROUP RATING = 60-99 or (A/B)*
> vii.        RS >= 79
>
> * Note: DGO in some reports will grade items as A,B,C etc. and in another 
report will grade the same item numerically. A score of 60-79 = B and 
80-99=A. A score of 60 or higher means that it is at least a rating of B.
>
> He also uses Stockcharts and MA's to make the final decision as to the 
candidates that move on to WT.
>
> Haven't seen any data that 'tells' me that using fundamentals for 
intermediate or swing trading is bad!!! So ...even if using them is nothing 
more than a placebo, they make me feel good,  so why not continue to use 
them... that's the easiest and most structured part of the process.... 
chart reading by my definition being the most difficult.
>
> K. what have you learned from this banter?
>
> Gene
>
>
>
>   ----- Original Message -----
>   From: Tom Worley
>   To: canslim@lists.xmission.com
>   Sent: Sunday, December 16, 2001 7:24 PM
>   Subject: Re: [CANSLIM] Point of View: Why bother with fundamentals?
>
>
>   Gene,
>
>   It all depends on whether you have the time and stamina to day trade, 
or you are trying to invest. If the former, go with WizeTrade. If the 
latter, find something that works beyond a few hours or a few days.
>
>   I have known a number of day traders over the years, and none used 
fundies, most didn't even know what the company did for business. Ignored 
sector or industry group, earnings (past or future), RS, etc. Several 
didn't even really know how to read a chart, simply relied on current 
momentum. The ones that did it professionally spent upwards of 10 hours a 
day in front of their monitor(s). One had 7 different monitors and two TVs 
he tried to watch continuously.
>
>   Tom Worley
>   stkguru@netside.net
>   AIM: TexWorley
>
>     ----- Original Message -----
>     From: Gene Ricci
>     To: canslim@lists.xmission.com
>     Sent: Sunday, December 16, 2001 5:23 PM
>     Subject: Re: [CANSLIM] Point of View: Why bother with fundamentals?
>
>
>     K, thanks for the clarification.
>
>     A couple of weeks ago I would have said 'no fundamentals... are you 
kidding me'.
>
>     I've had several discussions over the past 2-3 weeks and as recently 
as last Thursday, I was told to think 'out of the box' by a VP at 
WizeTrade. I signed up for their 30-day trial (week ago) and was in his 
office 'showing' him the shortcomings of his system. He showed me a sign 
that said... price is determined by buyers and sellers. He went on to say 
that all I had to do was to look at the Green (buy) and Red (sell) 
indicators.... green means more buyers than sellers and red more sellers 
than buyers. The program has charts.... felt better when I found that 
out.... turns out the charts were just time intervals intraday, day, week, 
month.... the lines on the chart were green and red. When the green crossed 
up over red, time to buy.... when red over green it's time to sell.
>
>     From WizeTrade home page or links.
>
>      The green line and the red line are summation formulas and not price 
lines or graphs
>
>           "No, WizetradeT is not based on "moving averages." WizetradeT 
uses seven key technical indicators to perform its complex "real-time" 
calculations at the rate of 800-1500 calculations per second. The seven key 
indicators are the previous day's closing price, the current day's opening 
price, high, low, every up tick, every down tick - which are then 
exponentially weighted to volume."
>
>     How can this system work, no fundamentals, stochastic, MACD, 
candlesticks, CANSLIM, etc.?? They seem to take pride in buying companies 
that they don't know much about or what the symbol stands for.... they do 
take pride in the fact that their software tells them immediately when 
there are more buyers than sellers, etc. .... BTW, they signaled to get out 
of ENE at 80+.
>
>     I was told that fundamentals were nothing more than a time waster and 
a poor placebo (in a nice way).
>
>     I'm interested in learning 'the truth'. Certainly would be nice to 
quit looking at fundamentals and all that research as well as spending 
money on DGO/IBD.... etc. WizeTrade also eliminates the need to track or 
know anything about sector rotation.... their buyers and sellers tell them 
all that.
>
>     Is it possible that I've been wasting my time looking for data to 
support what I call a good company?
>
>     Naw, can't be!
>
>     Guess I'll just have to try to understand how and if their system 
works.... over the holidays.
>
>     Disclaimer: I don't work for them and until my trial is over, I'm not 
even a customer.
>     Gene
>       ----- Original Message -----
>       From: Katherine Malm
>       To: canslim@lists.xmission.com
>       Sent: Sunday, December 16, 2001 2:55 PM
>       Subject: Re: [CANSLIM] Point of View: Why bother with fundamentals?
>
>
>       That would mean any selection criteria that depended on something 
other than price/volume/volatility technical indicators.
>
>       Katherine
>         ----- Original Message -----
>         From: Gene Ricci
>         To: canslim@lists.xmission.com
>         Sent: Sunday, December 16, 2001 3:14 PM
>         Subject: Re: [CANSLIM] Point of View: Why bother with 
fundamentals?
>
>
>         Please define "any sort of fundamental analysis"...
>
>         Thanks,
>         Gene
>
>           ----- Original Message -----
>           From: Katherine Malm
>           To: canslim@lists.xmission.com
>           Sent: Sunday, December 16, 2001 10:12 AM
>           Subject: [CANSLIM] Point of View: Why bother with fundamentals?
>
>
>           Proposed:
>
>           If a typical CANSLIM/Intermediate term move in a stock lasts 
only a few weeks, and in good markets, only a few months, why bother 
selecting portfolio candidates using any sort of fundamental analysis? 
Returns in this time period are strictly based on price movement and can be 
maximized based on technical indicators and price/volume action alone.
>
>           Thoughts pro/con?
>
>           Katherine
>  << Datei: ATT00017.htm >> 

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