Re: [CANSLIM] Swing Trading? & Greetings & A question

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] Swing Trading? & Greetings & A question
Date: Wed, 21 Aug 2002 23:41:21 -0400
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Hi Jeff, and welcome to the group, glad to see another lurker come out into
the open and introduce himself. You must be a fast student if you go from
knowing nothing about the markets to actual investing in such a short time
period.

As for your questions, if a company is using stock to pay for acquisitions,
they at least want the appearance that their stock is strong. Otherwise, the
acquired company will demand more favorable terms.

Why would a company buy back its own stock? Bottom line is that they
consider it so undervalued that it represents a good investment to them. Of
course, I am also cynical enough to believe that corp insiders, with lots of
stock options, or even stock, want the price supported. If the purchased
shares are retired, it reduces both the float and the total issue, and
increases earnings. If the shares are placed in Treasury, they can be used
for employee stock option plans, or as currency of tender for a future
acquisition.

I will let someone else with first hand experience with floor specialists
comment on your third question.

- ----- Original Message -----
From: "Jeff Bogatay" <jeff@bogatay.com>
To: <canslim@lists.xmission.com>
Sent: Wednesday, August 21, 2002 3:51 PM
Subject: RE: [CANSLIM] Swing Trading? & Greetings & A question


Greets group.

Long time lurker.  Six months ago I knew absolutely nothing about the
markets.  It's starting to sink in now.  Jumped in head first and burned
through my free trades in no-time flat.  I feel fortunate to only be
down about 20%.  Didn't start with that much, so it's not _that_
painfull.  It was almost purely driven by emotion, and now that I got it
out of my system I am taking a slower, more analytical approach.

This mailing list is chock-full of great information.  I have learned
quite a bit via this list alone.

I'm more into charts then fundamentals, my ultimate goal is to do some
shorter term trading.  You need to have a sizable chunk of capital to do
this, in the interim I am studying up on CANSLIM and intermediate term
investing.  Who knows, perhaps I'll learn to love fundamentals? :P

I too have My Farley's book.  I got almost 2 chapters in and I haven't
got back to it yet.  It's most definitely a tough read.  For some reason
it almost reminded me of Dr Suess talks Stock Markets.  I am presently
reading HTMMIS.  I will return to Master Swing Trader at some later
point, when I have more time and open it before it's dark outside.  On
more than a few nights, that book put me out like a light.

I have a decent understaning of the mechanics of business, and am
starting to grasp the mechanics of the market.  One area which I'd like
to learn more about is the intersection of the two.  Does anybody have
any websites that detail this interaction?  Things like...

- -  Other than the obvious benefit for acquisitions, stock options,
etc... What direct effect does a company's stock price have on the
company?
- -  Other than for investment purposes, why would a company buy back
stock?
- -  A quick overview of specialists?  Who do they work for, their
interaction with the company/exchange, etc..


Forgive me if these questions are off-topic or dumbish.  I hope that one
day I'll be able to contribute something of substance.








- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of Eric Jaenike
Sent: Wednesday, August 21, 2002 2:11 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Swing Trading?


I just started reading Alan Farley's book, The Master Swing Trader. As I
understand it, swing trading focuses on shorter term swings in the
market when the market/stock is trading in a nontrending/horizontal
fashion. That method focuses on buying at support and selling at
resistance. When the instrument in question then breaks from its current
trading range, the swing trader will then change tactics and switch to a
momentum trading style.
I have only read about 50 pages of his book, but so far have found it to
be one of the best investing books I have read. It is, however, very
advanced, very technical, and a slow read.
Eric

 Warren Keuffel wrote:
What, exactly, is swing trading? I understand day trading -- you are in
and out of a stock one or more times during a day, and don't hold
overnight. CANSLIM has (in my mind) a 1-6 month horizon, in general,
depending on markets, etc. The term Swing Trading implies some kind of
back and forth action. For how long? What kind of buy/sell rules apply?

Inquiring Minds Want To Know.
Thanks.
Warren


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