Go to Jeff Salisbury LWGate Home Page.From: "Pritish Shah" <pshah@lason.com>
Subject: RE: [CANSLIM] stock software
Date: Fri, 08 Aug 2003 01:00:18 -0400
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Jeff, I have started reading couple books on "Chart patterns". They are called Trading Classic Chart patterns and Encyclopedia of Chart Patterns (both by the same writer (Thomas Bulkowski). One thing that I do not see in any WON books is detailed statistics with numbers. The above books have it. It also covers what should be the price target and how to calculate an actual number. I have now been able to buy good stocks -- I just haven't been able to sell it at the right price (except ofcourse for the 7% to 8% loss rule). These books put it in clear english what should be the profit point and what is the failure rate etc. Eg. CwH statistics between 1991 and 1996 Failure Rate: 26% Average Rise: 38% with most likely rise between 10% and 20%. Throwbacks: 74% (this is retesting the pivot) % meeting predicted price: 49% using full formation height, 73% using half formation height Surprising find: Cups with higher right lip perform better (40% avg vs 35% for the lower right lip) So, the question is how do you find the target price. Well after reading the book, take the depth of the cup and add it to the pivot (WOW -- this is what I was looking for for such a long time. I now have to go back and examine my failures). But full depth is successful only 49% of the time AND (and this is a big AND) using half the depth of the cup as the profit motive made the trade successful 73% of the time. More later. This book will be like finding Nirvana if what it says turns out to be on the mark. Pritish >>> JHend746@cox.net 08/07/03 8:24 PM >>> Hey thanks everybody! What a great community! One day I will hopefully be able to give something back instead of just asking questions. Jeff Henderson - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of DMC197807 Sent: Thursday, August 07, 2003 12:42 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] stock software Jeff, Those are 3 good books. Only about 50 more to go! I actually think that Van Tharp's book and Stan Weinstein's book are the first pillars of wisdom here, both well-written and logical. Van & Stan, sounds like a car dealership. Here is a basic list I made up for a young man (college boy) who wanted to learn about TA and trading. It's about 1/3 the books I have (I find Farley, Pring and Dorsey to be harder slogging in the initial rounds, so put them off to later--by that time you'll be able to choose your own books) and I'm sure that others may vote for different books in the intial cut, but that's what makes a market, even in books: E= Elder, Trading for a Living IBD= Investors Business Daily M= Murphy, Technical Analysis of the Financial Markets Ma= Moving Averages Simplified (Drokes) Mc=McMillan, Options as a Strategic Investment Mo= Morris, Candlestick Charting Explained Ni= Nison, Beyond Candlesticks Vt= Van Tharp, Trade Your Way to Financial Freedom Ta= Technical Analysis of Stocks & Commodities (magazine) W= Weinstein, Secrets of Profiting in Bull & Bear Markets Things I don't find helpful in the early stages of learning are: Gann, Fibonacci and Bulkowski's chart analysis. DMC - ----- Original Message ----- From: Jeff Henderson <mailto:JHend746@cox.net> To: canslim@lists.xmission.com Sent: Wednesday, August 06, 2003 1:02 PM Subject: RE: [CANSLIM] stock software I read <http://www.amazon.com/exec/obidos/ISBN=0070480176/arbtrading-20/> How to Make Money in Stocks: A Winning System in Good Times or Bad by William O'Neill and <http://www.amazon.com/exec/obidos/ISBN=0070647623/arbtrading-20/> Trade Your Way to Financial Freedom by K. Tharp and Nicholas Darvas's book <http://www.amazon.com/exec/obidos/ISBN=0818403969/arbtrading-20/> How I Made 2,000,000 in the Stock Market - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of DMC197807 Sent: Wednesday, August 06, 2003 2:56 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] stock software Jeff, If you are a college student then I suggest you spend zero dollars for software. You no doubt have access to high speed internet access (aka the Big Pipe). You should be able to utilize a lot of free sites (including this one) to get some education. I'd suggest using the MSN site for scanning, the free section of stockcharts.com for charting (and education) and the library for borrowing books. You can lurk at a number of for-pay investment sites (SI comes to mind) and learn from a number of very wise people. Most investment sites have an extensive education spot (check out stockcharts, Bernie Schaefer). If you're going to college in or near a big city, I'd suggest signing up for free presentations/seminars offered by TC2K, Metastock, 21st Century Investor Educ. Center (options), etc. If your college has a business school you might look for a finance course, if it's Univ of Penna, you might hang out at the Wharton School, etc. Also, check to see if your school has an investment club/group/etc. These can be very sophisticated, although they almost always are enamored of an FA approach. Btw, "I just got finished reading 3 stock books and I'm getting anxious about trading" is a dangerous sentence to read. The market stands ready, willing and able to separate you from your brokerage account. I'm not saying "don't tread," but rather, "tread very carefully." Which 3 stock books did you read? DMC - ----- Original Message ----- From: Jeff Henderson <mailto:JHend746@cox.net> To: Canslim <mailto:canslim@lists.xmission.com> Sent: Wednesday, August 06, 2003 11:57 AM Subject: [CANSLIM] stock software Does anybody have any recommendations for stock software? I'm looking for getting the most for my $ plus I'm a college student so, I really don't have to much money to spend (<$100). Sorry if I'm asking too many questions but it's my first day and I just got finished reading 3 stock books and I'm getting anxious about trading. Thanks, Jeff H. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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