Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] stacking the odds in my favor-buying before the pivot point
Date: Fri, 21 Dec 2001 09:07:44 -0600
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This is a multi-part message in MIME format. - ------=_NextPart_000_0099_01C189FE.F39DFB40 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Good question, Warren. It is at this very spot where "theory" and = "practice" meet that the individual has to apply some reasonable = assumptions, analytical tools, and executable steps. A fancy way of = saying, "I know that price has a probability of moving up when demand = outstrips supply, and I can use chart patterns to identify that point." = But....for each person, that "point" may be a little different. I think = that's what Tom has been referring to in his own posts. He has a comfort = with microcaps and under-followed stocks in general, so he has adjusted = his entries to match the typical behavior of these stocks. As I have = become more comfortable with technical patterns and more confident in my = own candidate selection process, I have modified these entries a bit. I = am much more willing to take entries on patterns other than the = traditional C&H or flat base near old highs. I control risk by = decreasing my lot size and then adding to positions as the stock = continues to show strength and then pulls back to the intermediate term = trend. That's not to say I don't have to pull the plug every now and = then, and then possibly re-enter when the smoke clears. But that's about = personal style in the spirit of CANSLIM and in the spirit of "the = balance between supply and demand." In general, I still think that these = things could be done with stop-limit orders for entry and therefore = wouldn't require screen-sitting all day long. I have the luxury of being = at home all day as well, but I really don't find it interesting to = "watch" the market. I let my alarms tell me when/if the time is near, = then place a market order when it's right. Again, personal style, but = not a requirement. Katherine ----- Original Message -----=20 From: Warren Keuffel=20 To: canslim@lists.xmission.com=20 Sent: Friday, December 21, 2001 8:47 AM Subject: Re: [CANSLIM] stacking the odds in my favor-buying before the = pivot point Katherine, This is the Theory, and it is Good. But in Practice, being able to identify the B/O and get in before it is too extended is where the rubber really meets the road. Hence, I am starting to favor an = earlier entry (and I believe Tom mentioned that he does this as well) because IMHO only those glued to their screens all day long, with = sophisticated alarms, etc. can react quickly enough to act at the ideal entry point. Maybe it's not as hard as I make it out to be, but I have not had many successes with ideal entry points, and I work from home so am seldom = far from my computer. How about you? Are you able to repeatably time = your entries optimally? Warren Katherine Malm wrote: <snip> > (1) The idea behind waiting for a good stock to form a solid base = and > then break out on volume is to identify that magical point at which > Demand outstrips Supply and Price is pushed higher--essentially the > old Supply/Demand curve from economics class. Assuming the lion's > share of sellers have been exhausted and the stock is one that = people > would wish to own, the theory is that any additional demand for the > stock will push the price further. In order for the Price to = continue > on, the underlying fundamentals that create value in the company = have > got to be sound. So from this point of view, waiting for the B/O is > stacking the odds in your favor. <snip> - -To subscribe/unsubscribe, email "majordomo@xmission.com" -In the email body, write "subscribe canslim" or -"unsubscribe canslim". Do not use quotes in your email. - ------=_NextPart_000_0099_01C189FE.F39DFB40 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 5.50.4611.1300" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV>Good question, Warren. It is at this very spot where "theory" and=20 "practice" meet that the individual has to apply some reasonable = assumptions,=20 analytical tools, and executable steps. A fancy way of saying, "I know = that=20 price has a probability of moving up when demand outstrips supply, and I = can use=20 chart patterns to identify that point." But....for each person, that = "point" may=20 be a little different. I think that's what Tom has been referring to in = his own=20 posts. He has a comfort with microcaps and under-followed stocks in = general, so=20 he has adjusted his entries to match the typical behavior of these = stocks. As I=20 have become more comfortable with technical patterns and more confident = in my=20 own candidate selection process, I have modified these entries a bit. I = am much=20 more willing to take entries on patterns other than the traditional = C&H or=20 flat base near old highs. I control risk by decreasing my lot size and = then=20 adding to positions as the stock continues to show strength and then = pulls back=20 to the intermediate term trend. That's not to say I don't have to pull = the plug=20 every now and then, and then possibly re-enter when the smoke clears. = But that's=20 about personal style in the spirit of CANSLIM and in the spirit of "the = balance=20 between supply and demand." In general, I still think that these things = could be=20 done with stop-limit orders for entry and therefore wouldn't require=20 screen-sitting all day long. I have the luxury of being at home all day = as well,=20 but I really don't find it interesting to "watch" the market. I let my = alarms=20 tell me when/if the time is near, then place a market order when it's = right.=20 Again, personal style, but not a requirement.</DIV> <DIV> </DIV> <DIV>Katherine</DIV> <BLOCKQUOTE=20 style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; = BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV> <DIV=20 style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: = black"><B>From:</B>=20 <A title=3Dwkeuffel@xmission.com = href=3D"mailto:wkeuffel@xmission.com">Warren=20 Keuffel</A> </DIV> <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A = title=3Dcanslim@lists.xmission.com=20 = href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= </DIV> <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Friday, December 21, 2001 = 8:47=20 AM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] stacking = the odds=20 in my favor-buying before the pivot point</DIV> <DIV><BR></DIV>Katherine,<BR><BR>This is the Theory, and it is = Good. But=20 in Practice, being able to<BR>identify the B/O and get in before it is = too=20 extended is where the<BR>rubber really meets the road. Hence, I = am=20 starting to favor an earlier<BR>entry (and I believe Tom mentioned = that he=20 does this as well) because<BR>IMHO only those glued to their screens = all day=20 long, with sophisticated<BR>alarms, etc. can react quickly enough to = act at=20 the ideal entry point.<BR><BR>Maybe it's not as hard as I make it out = to be,=20 but I have not had many<BR>successes with ideal entry points, and I = work from=20 home so am seldom far<BR>from my computer. How about you? = Are you=20 able to repeatably time your<BR>entries=20 optimally?<BR><BR>Warren<BR><BR>Katherine Malm=20 wrote:<BR><BR><snip><BR><BR>> (1) The idea behind = waiting for a=20 good stock to form a solid base and<BR>> then break out on volume = is to=20 identify that magical point at which<BR>> Demand outstrips Supply = and Price=20 is pushed higher--essentially the<BR>> old Supply/Demand curve from = economics class. Assuming the lion's<BR>> share of = sellers have=20 been exhausted and the stock is one that people<BR>> would wish to = own, the=20 theory is that any additional demand for the<BR>> stock will push = the price=20 further. In order for the Price to continue<BR>> on, the underlying = fundamentals that create value in the company have<BR>> got to be = sound. So=20 from this point of view, waiting for the B/O is<BR>> stacking the = odds in=20 your favor.<BR><BR><snip><BR><BR><BR><BR>-<BR>-To = subscribe/unsubscribe,=20 email "<A=20 = href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In= the=20 email body, write "subscribe canslim" or<BR>-"unsubscribe = canslim". Do=20 not use quotes in your email.</BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_0099_01C189FE.F39DFB40-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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