Re: [CANSLIM] Re: Does CANSLIM Work?

From: "Erik Harris" <erik_harris3745@yahoo.com>
Subject: Re: [CANSLIM] Re: Does CANSLIM Work?
Date: Fri, 7 Mar 2003 16:53:57 -0500

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James,

As other people have indicated, the book will help you out with your
question.  There are chapters which address the topics of "how to spot when
the market hits a top", "how to spot when the market bottoms", How to guage
the stock market's health", and "How to buy at just the right moment", just
to name a few.

In brief, Canslim advocates waiting for a "follow-through" day before going
long after a negative trend.  This means one of the indicies closes up 1% or
more with a increase in volume the day before.  Because often the market
will continue on its downward trend, we wait for a "confirmation day" which
is another day of increasing price and volume which will generally occur 3-4
days after the FT Day.  Such a move confirms that the trend is a good one
and suggest safety in going long (or back in the market from cash).

Note:  this is a very condensed summary of the idea and I suggest you read
one of the books.
  24 Essential Lessons for Investment Success - O'Neil
  How to Make Money in Stocks - O'Neil

Erik

- ----- Original Message -----
From: "James Lackey" <lackey1967@yahoo.com>
To: <canslim@lists.xmission.com>
Sent: Friday, March 07, 2003 12:08 AM
Subject: Re: [CANSLIM] Re: Does CANSLIM Work?

> " CANSLIM advocates a 100% cash position when the technical
> > situation of the market is negative."  So this CANSLIM has been in cash
> since 2000?  How do you know when the market turns negative, until it goes
> down?  Then how do you know when it is time to get back in when the market
> goes up?  So I sell after it starts going down and I buy after it starts
> going up?  I do not understand..LACK
>
> --- AJAskey@aol.com wrote:
> > James,
> >
> > CANSLIM is nothing mystical.  The goal is to find the best fundamental
> > growth
> > stocks and buy them just as they make their major price moves.  It
differs
> >
> > from most fundamental growth stategies in that it does not advocate
buying
> > a
> > stock with exceptional fundamentals and waiting for the market to
"figure
> > out
> > the value".  The goal is to buy each stock just as it begins a major
price
> >
> > move.  The market's general conditions are consider as the probabilty of
> > success is greatly increased in a bull market (and decreased in a bear
> > market).  CANSLIM advocates a 100% cash position when the technical
> > situation
> > of the market is negative.  There are rules and guides outlining what
and
> > when to buy and sell but it still requires judgement and experience to
> > maximize profits.
> >
> > I recommend reading O'Neil's book before you attempt to trade using
> > CANSLIM.
> > Even if you decide against CANSLIM as a strategy, you will probably
learn
> > enough to make/save hundreds, thousands, and maybe millions of times the
> > $12
> > cost of the book.
> >
> > Andy
> >
>
>
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