Re: [CANSLIM] Some Insight

From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] Some Insight
Date: Sun, 27 Jan 2002 18:18:16 -0500
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Bert, wait a minute, you went from being a diemaker (and successfully
selling the business) to being a computer OS techie, and you're worried
about how to learn to use CANSLIM?? I think you are underestimating
yourself.

Step One:  read HTMMIS (Wm O'Neil's How To Make Money In Stocks).
Unfortunately publication of the 3rd edition is still delayed, so you have
to settle for 2nd edition.

Step Two: read WON's 24 lessons, which updates HTMMIS

Step Three: recognize that IBD did not invent CANSLIM, WON did. Of course,
he is the founder of IBD as well as Daily Graphs / Daily Graphs Online
(DG/DGO). I looked at my first copy this weekend of IBD in several years,
and was amused how they word things to make it sound like CANSLIM investing
is all their idea. No matter that CANSLIM was around about 20 years before
the first copy of Investor's Daily (predecessor to IBD) was ever printed.

Step Four: decide if you simply want to follow the markets, which is what
you are doing by using IBD or a monthly screen such as you mention at AAII,
or if you want to be more dynamically involved on a day by day or week by
week basis.

Step Five: If at this point in your life, you really don't want to have to
learn a new skill (how to find, choose, time stocks all on your own, but
with help from this group, of course) then consider just using mutual funds.
There are more funds available today than stocks, I believe, so there is
ultimately something to suit everyone. And for those that don't want to
specialize, there are hedge funds, and funds that simply match the major
indexes.

FWIW, Bert, I will be 55 this year and still working and learning. I have
been involved in, and employed by, the securities industry for the past 14
years. I have been using CANSLIM for over 12 years, and for the past 5 years
or so, nothing but CANSLIM. And I am still learning (and sometimes having to
relearn) every day.

If you have not already done Steps One and Two, I would suggest doing that
before you make any other decisions. In my 40 years of investing, I think I
have tried just about everything, and nothing consistently made sense until
I first read HTMMIS. After that, a lot I had seen or had happen to me
started to make more sense.

Good luck, we're here to help if you want to pursue an education in CANSLIM.

Tom Worley
stkguru@netside.net
AIM: TexWorley
- ----- Original Message -----
From: "Bert Pesak" <bpesak@mail1.nai.net>
To: <canslim@lists.xmission.com>
Sent: Sunday, January 27, 2002 3:29 PM
Subject: [CANSLIM] Some Insight


> Hello Gail & Tom,
>
> First, I appreciate both of your responses.
>
> Gail, I looked at your fund parlay quickly.  I like the apparent
simplicity
> of it.  I do not have the opportunity to swap funds on a daily basis as
you
> do, so your parlay is could not be part of my process.
>
> One of the things I do not want to do is to keep looking for new theories
on
> stock picking.  I have spent the 14 years listening to various analysts,
> news letters (Michael Murphy, Louis Rukeyser, The Chartist, friends) and
> find that when the market is booming they all do pretty well.  None of
them
> were able to see the bust, which I have been waiting for since 1990 (my
> naturally pessimistic personality) nor were they able to be realistic
about
> the depth or longevity of the fall.
>
> I have been a member of AAII since 1996 and find their monthly magazine
very
> worthwhile.  They also have a good website.  They have screening programs
> that emulate many stock picking theories including CANSLIM.  Canslim shows
> about a 270% increase for the last 4 years.  Another one that is very good
> is the Martin Zweig screen, up 299%.  I am tracking both portfolios on the
> AAII website.  The screen are done on a monthly basis at the end of the
> month, and adjustments are made on the next screening or when a stock
should
> be sold because of meeting a certain parameter (like falling 8%).
>
> My background is: 64 years old, in my first life I owned a small metal
> stamping & die making shop ( I was the Diemaker) for 23 years.  I sold the
> business in 1988.  In my 2nd life I went into the computer world, PC
> operating systems were my specialty, Starting in 1978 with Northstar dos,
> CPM, TurboDos, MS-DOS, Windows, Novell, and ending with NT.  I am
basically
> a techie, with some people skills.  I received a quick lesson in 1989 on
how
> to use the IBD newspaper and then went off on various tangents.  I have
come
> full circle and find myself back at the IBD Canslim theory.
>
> My dilemma is how do I get the necessary skills and then make use of them
in
> the time I can allocate for investing.  I have subscribed to IBD and use
> their website.  I check their screens every day looking for stocks to
watch
> and found myself getting emotionally carried away.  I bought TRR, UTSI,
CACI
> and proceeded to $1500 in a week.  I sold when they dropped 8%, one fell
so
> fast it cost me 12%.
>
> So here I am folks, any help would be much appreciated.
>
> Bert Pesak
> bpesak@ct1.nai.net
>
>
>
>
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>



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