Re: [CANSLIM] Market, Nasdaq 100

From: "Doug Goertzen" <d_s_g67@hotmail.com>
Subject: Re: [CANSLIM] Market, Nasdaq 100
Date: Sun, 24 Feb 2002 09:33:24 -0600
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I would say that you are both right.  CANSLIM is simple, in the sense that
there are identifiable basics and a fairly easy to understand "spirit" of
investing.  On the other hand, knowing yourself well enough to narrow the
generality of CANSLIM to an applicable set of rules that fit you and having
the discipline to consistently apply the rules even when it feels wrong
emotionally is much more difficult.

A direct analogy is physical fitness.  I can write out on one or two sheets
of paper a simple plan of diet, aerobic exercise, and resistance training
that will allow anyone to get in great shape in 3 months.  Even with this
information easily available, there will only be a small percentage of
people with the internal ability and control to follow the plan relentlessly
until the results are achieved.

Just my two cents (which, given my trading account and money management
rules, is all I can risk on any one opinion).

- -- Doug

>From: "Katherine Malm" <kmalm@earthlink.net>
>Reply-To: canslim@lists.xmission.com
>To: <canslim@lists.xmission.com>
>Subject: Re: [CANSLIM] Market, Nasdaq 100
>Date: Sat, 23 Feb 2002 16:28:06 -0600
>
>Dan,
>
>Agreed that a business degree from Harvard is not necessary.
>
>I would also add, if CANSLIM is so "simple" then why is there a paper
>published each and every market day that continues to print lessons, an IBD
>advanced investment seminar at least twice a year, an updated edition of
>HTMMIS every so often, lists devoted to the CANSLIM discipline? Why is it
>that WON continues to refine and add to his lists of indicators or his
>market FTD rules? Why is it that each and every person who follows the
>CANSLIM discipline has not garnered at least a 25% compounded annual return
>each and every year? Because, while the *rules* are simple as you suggest,
>the *implementation* is not. There is always something new to learn, always
>a new "twist" on interpretation, always a new economic/business/market
>backdrop unfolding and the investor must always be intelligently conscious
>of these things.
>
>To the notion of "beating the bushes," I believe that an intelligent
>investor is always preparing for the market to go *either* direction and
>then willing to take trades in the appropriate direction (or if they don't
>short to stand aside). To idly sit by and discontinue mining for quality
>candidates because the market is in a downdraft is mindless and
>inappropriate whether a CANSLIMer or anything else.
>
>Katherine
>   ----- Original Message -----
>   From: Dan Forant
>   To: canslim@lists.xmission.com
>   Sent: Saturday, February 23, 2002 4:07 PM
>   Subject: Re: [CANSLIM] Market, Nasdaq 100
>
>
>   Katherine,
>
>   Well, we must agree to disagree here. Canslim is a simple system to
>follow. It's book is just over 260 pages. Large print. All that is needed
>is knowing the general guidelines. A business degree from Harvard isn't
>necessary.
>
>   L8ter
>   DanF
>     ----- Original Message -----
>     From: Katherine Malm
>     To: canslim@lists.xmission.com
>     Sent: Saturday, February 23, 2002 3:47 PM
>     Subject: Re: [CANSLIM] Market, Nasdaq 100
>
>
>     Dan,
>
>     I'd say there's a world of difference between "brain surgery" and "a
>thinking person's system." On the same note, I wouldn't oversimplify what
>it takes to implement CANSLIM effectively. Not only do you have to be ready
>when the opportunity strikes, but have to select well, buy right AND sell
>right to make money. While the "rules" of CANSLIM are straightforward, they
>are not *simplistic" and neither is the market nor the economy.
>
>     Katherine
>       ----- Original Message -----
>       From: Dan Forant
>       To: canslim@lists.xmission.com
>       Sent: Saturday, February 23, 2002 2:41 PM
>       Subject: Re: [CANSLIM] Market, Nasdaq 100
>
>
>       Interpretation for the new Cansliim investors, don't stick your toes
>in the water unless you can do without them. I won't be steppin in puddles
>till the carnage is over using Canslim. Long after reading HTMMIS, a fairly
>simple form of stock picking, many in this group would lead you to believe
>it's brain surgery. Remember the KISS rule.
>
>       L8ter
>       DanF
>         ----- Original Message -----
>         From: Katherine Malm
>         To: canslim@lists.xmission.com
>         Sent: Saturday, February 23, 2002 1:21 PM
>         Subject: Re: [CANSLIM] Market, Nasdaq 100
>
>
>         Hi Patrick,
>
>         The sideways market seems the most plausible scenario given the
>confluence of economic/business/market/innovation cycles. What is most
>interesting about this, however, is that although at the end of the period
>the real returns on the market may be even, within that sideways market
>there are waves of stock/industry movement to ride up and down. A
>discipline like CANSLIM will allow us to make money during this type of
>market but doesn't allow for the sloppiness in candidate mining/due
>diligence/entry/exit afforded us by a Great Bull run. I just think a
>sideways market will *force* us to be excellent investors and I can't see
>that that's a bad thing.
>
>         Katherine
>           ----- Original Message -----
>           From: Patrick Wahl
>           To: canslim@lists.xmission.com
>           Sent: Saturday, February 23, 2002 11:19 AM
>           Subject: Re: [CANSLIM] Market, Nasdaq 100
>
>
>           I've seen several people make the same forecast for a 10-15 year
>sideway market, I
>           guess this would be similar to the market from the late 60's to
>1982, so it is certainly
>           possible.  Not very encouraging, I hope you are wrong on this
>one.  We were above
>           the long term growth trend of the market for so long that I
>suppose a below trend
>           period is due.
>
>           (remember the books of a few years ago - Dow 30,000, and I think
>there was also a
>           Dow 50,000.  Wonder where the authors stand on this now.)
>
>           On 22 Feb 2002 at 17:11, Katherine Malm wrote:
>
>           > I remember your remark, Fred, and I heed well the advise. I
>do,
>           > however, differentiate between "hope" and "what I see" as they
>are not
>           > one and the same. I have never believed that we were headed
>into a
>           > raging Bull as the '82-'00 but instead into a long 10-15 year
>sideways
>           > market. We have several forces working in
>tandem--monetary/inflation
>           > cycles, earnings cycles, global interconnectedness, innovation
>cycles,
>           > human nature, fiscal policy, market cycles, etc. Despite the
>fact that
>           > I was not investing during the last 100 years, I have studied
>market
>           > history. For that reason, I simply "read what is and act upon
>it" vs.
>           > "wish or hope that the market will go up." A CANSLIM
>discipline works
>           > because it forces the trader/investor to read the signals and
>act
>           > accordingly.
>
>
>           -
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_______________________________________________________
"While Piglet frets...and Eeyore hesitates...and Rabbit
calculates...and Owl pontificates...Pooh just is."
- -- The Tao of Pooh

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