Re: [CANSLIM] filter

From: Fanus <fanus13@yahoo.com>
Subject: Re: [CANSLIM] filter
Date: Thu, 7 Aug 2003 08:59:14 -0700 (PDT)
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What you list below is the easy part.  This is just an
easy filter, or screen to get a list of stocks.
Creating and running a filter IS easy. But having a
filter is not investing, or trading.  

The rest you mentioned almost as an afterthought is
the difficult part.  You still have to decide on entry
and exit points, money management, discipline to stay
with your decisions, etc.

Maybe it is easy for you after doing it a couple of
years, but investing/trading is not easy for most
people. If it was, everyone would be doing it for a
few years and then retire on an island somewhere.

- - Fanus

- --- Mark Crisp <stressfreetrader@btopenworld.com>
wrote:
> Look,
> 
>  I think many of you are making CANSLIM much more
> complicated that it really is.
> 
>   This is how I have been trading very successfully
> for a number of years.
> 
>  RS 80+
>  E.P.S. 70+ (annual)
> 1 Year high (5 y/h preferred)
>  Price >$10 <$50
> Volume% inc: >250%   (this tells me an institution
> has bought)
> Average volume: >250,000 per day (not interested in
> illiquid stocks)
> Cap: <2.0bn   (small cap stocks)
> 
>   Viola... I usually get one or two stocks per week
> that I then chart and concentrate on "trading"
> 
>    At the end of the day it is about position
> sizing, money management and having the correct
> trading psychology.
> 
>   READ Darvases book. you'll get the picture.
> 
>   Mark
>   ----- Original Message ----- 
>   From: DMC197807 
>   To: canslim@lists.xmission.com 
>   Sent: Wednesday, August 06, 2003 8:08 PM
>   Subject: Re: [CANSLIM] filter
> 
> 
>   Jeff,
> 
>   If you're using a free scanner, why don't you use
> the one Gene posted a couple of days ago (I'll
> repost his post) and play with the criteria there. 
> If I adjust relative strength to 80 or above it
> spits out 15 names.
> 
>   As for CANSLIM criteria, after M one supposes they
> are all important, and my descending order is no
> better (could be a lot worse) than anyone else's. 
> However, you are asking a question that I answered 2
> days ago, at least from my perspective.  This is
> from my note on 8/4 to Yien:
> 
> 
>   <<Good, that's a bunch of information that you
> can't use.  Now, for some you
>   can.  There are only 3 numbers which matter, when
> all the dust is settled.
>   They are NOT p/e, d/e, current ratio, PEG, profit
> margin or inventory
>   turnover.
> 
>   THEY ARE:  Price paid for shares, Price received
> for shares, Time held.
> 
>   Now, MILSCAN (Canslim to some of you) is a very
> interesting approach, and
>   can possibly, with strong position and money
> management systems, help you to
>   buy low and sell high in a timely timeframe.
> 
>   Here's how I think of these factors, in descending
> order of importance:
> 
>   <<M is for the market and the market trend.  We
> are at an inflection point
>   here, so it's lookout below, or perhaps lookout
> above.
> 
>   N is for new highs in the stock, breaking out
> above the pivot point
> 
>   L is for an relative strength rating of 70 or
> better
> 
>   A is for annual earnings growth (this is for
> additional comfort)
> 
>   C is for current quarterly earnings (this is for
> additional comfort)
> 
>   I is for institutional sponsorship  (this is a
> timing issue--I think I trust
>   the chart over this, for some reason)
> 
>   S is for supply of stock (looking for a relatively
> low no. of shares--here I
>   want to exclude the over-issued monsters like CSCO
> and INTC where it will
>   take a ton of momentum to move the billions of
> shares outstanding).
> 
>   In closing, using TA and FA together is a good
> idea, but when in conflict,
>   trust the TA.  Remember, out of 7000 stocks we are
> looking for 1 or 2 names
>   a week on which to carefully place our hopes. >>
> 
>   DMC
>     ----- Original Message ----- 
>     From: Jeff Henderson 
>     To: canslim@lists.xmission.com 
>     Sent: Wednesday, August 06, 2003 11:40 AM
>     Subject: RE: [CANSLIM] filter
> 
> 
>     Sorry about the misunderstanding I was using the
> CANSLIM acronym.  I'll explain my filter again. 
> First off I use MSN as my filter source.  Here is my
> filter that I use: current earnings per share (the
> same quarter a year ago)>=70%, annual earnings per
> share over the past 5 years, >= 24% compounded,
> shares outstanding<25,000,000, relative strength>
> 80%.
> 
>      
> 
>     -----Original Message-----
>     From: owner-canslim@lists.xmission.com
> [mailto:owner-canslim@lists.xmission.com] On Behalf
> Of DMC197807
>     Sent: Wednesday, August 06, 2003 11:23 AM
>     To: canslim@lists.xmission.com
>     Subject: Re: [CANSLIM] filter
> 
>      
> 
>     Jeff,
> 
>      
> 
>     I don't understand which filter/scan you are
> using, or what all your variables mean.  If you're
> using a public scan or stockcharts, maybe you can
> put in a link here?
> 
>      
> 
>     If C = capitalization and you are using only the
> top 30% of stocks you've filtered out way too many
> stocks already.  In capitalization I only filter out
> the very top stocks, but that's just me.  I don't
> know what your S is.  For relative strength I use
> the top 40% of the market, that is, stocks
> outperforming 60%.
> 
>      
> 
>     I'm willing to let some other names in because
> after this scan gives me names, I'm happy to look
> through charts to find appropriate patterns.
> 
>      
> 
>     DMC
> 
>      
> 
>      
> 
>     ----- Original Message ----- 
> 
>       From: Jeff Henderson 
> 
>       To: Canslim 
> 
>       Sent: Wednesday, August 06, 2003 9:02 AM
> 
>       Subject: [CANSLIM] filter
> 
>        
> 
>       After reading O'Neil's book I decided to use
> the filter C>=70, A>=5, S<25,000,000, relative
> strength>80 and last volume 1.5 average quarterly
> volume.  To my dismay, no stocks popped up.  How
> would you alter this filter?
> 


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