Re: [CANSLIM] AAII letter to the editor

From: "Charles & Lois Layne" <lelayne@earthlink.net>
Subject: Re: [CANSLIM] AAII letter to the editor
Date: Tue, 15 Jul 2003 09:41:03 -0400

Next Article (by Author): Re: [CANSLIM] Break outs or pullbacks Davellil5@aol.com
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- ----- Original Message -----

>
> "Finally, after three years and 25% to 35% or more annual deterioration in
> investors' stock portfolios," says Ford, "Investor's Business Daily
finally
> advised readers to go to cash - a recommendation that, if acted upon,
would
> have effectively crystallized losses and kept investors from participating
> in the market increases only a month later."
>
> Ouch!

I consider this a clear reminder for investors/traders to implement their
own trading rules and not depend on someone else.  Personalized trading
rules may be based on others' research and systems, such as CANSLIM, but
they need to be personalized and implemented by the individual.  In this
case, if one is utilizing CANSLIM principles, why wait for WON to say "get
out of the market" when CANSLIM applied principles say "get out of the
market?"

I was burned similarly in my only venture into the Motley Fool's
modifications of the Dow theories.  I read their material, did the research,
and decided it was viable.  I bought the appropriate Dow stocks at the time
and waited for the cycle.  Miserable times awaited.  One was delisted during
my holding period and another was just in time for tobacco lawsuits
pressures (any guesses on which one that was?).  To top it off, within two
years from my point of entry, the Motley Fools sort of disbanded their
theories.

The moral of my story is that I have learned over and over that it is far
better for me to know what I am trying to do than to wait for someone else
to tell me what to do.  It's cheaper, too.  And always remember: there's no
such thing as a free lunch (although I'd still like to at least get what I
pay for!).


Chuck Layne




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