Re: [CANSLIM] watchlist / portfolio philosophy

From: "Patrick Wahl" <pjwahl@attbi.com>
Subject: Re: [CANSLIM] watchlist / portfolio philosophy
Date: Thu, 17 Oct 2002 14:06:47 -0600

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On 17 Oct 2002 at 9:28, michael_niemotka@baxter.com wrote:

> That having been said, I was wonder how all of you manage your watchlist.
> Say for instance you have built a list of 20 (is that too few or too many)
> stocks that you are interested in.  You have noted the pivot points, and
> are waiting to see what happens.  On a day to day basis, as you read IBD,
> or get an idea from some other source on a stock, and after doing some
> research, you decide that it could be added to your list, do you delete the
> worst stock on your current list to make room for the new one?

I think you should be able to follow many more stocks than that in a favorable 
market, most of the time they just require a glance each day.  Right now that's 
actually about the number I've found that look ok, but I think that number could go 
to 50 or 100 in a good market, only reason to drop something is if it breaks down 
tecnhically or has some change in its fundamentals.

> Now, one of the stocks on your watch list breaks out on great volume......
> Do you sell off the worst performer, to buy into the breakout,  I guess the
> underlying question is how long do you hold a stock that you feel is sound,
> and has shown no sell signs, but yet is performing flat, or less powerfully
> than some of the newest breakout,

One thought is to go on margin and then be quick to cut the weakest performer, 
anything that starts to lag the market, so you aren't paying interest to hold a non-
performing stock.  But if you are tapped out and see something that looks good and 
the only option is to sell something, then I'd probably do that if I had a stock that 
hadn't gone anywhere.  I guess you need to evaluate any underpreformer relative to 
the market and relative to others in its industry, if is lagging both, and a good 
alternative comes along, dump it.

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