CANSLIM & Momentum Investing 02 (Aug 09 - Dec 24)

[iam802]

Lithium must have got it from Tiger

[lithium]

he he he........ in out in out in out....... make money or not is a different story

[Aspellian]

Agree with MM and learn2win,

find a method that suits you and gives you "an edge" (perceived or real). As long as it saves your pants when it matters and you follow the important rules (instead of pick and choose), then one should be relatively safe.

For me I do all the following which are highly debatable (which I dun intend to - just sharing and for learning)
- I count distribution days based on IBD and follow strictly the general trends
- I assume STI is a tou-fu index that generally follows US market.
- I cut loss when required
- I mainly buy companies with growth stories or strong catalysts on the horizon (ideally both growth + catalyst)
- trying to discipline myself on what to buy and how much of it each time


Still have lots and lots to learn. some accounts more +ve than others. I just choose that when it matters most (eg. 2008/ March 2009), I am ready and able to make some kopi $. Most importantly what CANSLIM teaches is something useful and I find it make sense (growth drives share prices) and suits me (as there's a guide that I can follow since I super-goondu and cannot make head/tail of economies)...


See where the market goes... remember that there's a turning point in 10th AUgust based on Bradley Graph (another perceived edge!!!!!!!hahahaha!!!) It can turned higher or lower.

By the way - the last 2 turning points of Bradley Graph indicated 26th June and 8th July and are very close to IBD's changes in Market Direction. Double Trading Edge man! hahah!!

Thanks to MM for bringing Bradley to our attention... Thanks also for bringing CAnslim to the forum's attention too. appreciated much.

[bulltick]

Thanks to MM for bringing Bradley to our attention... Thanks also for bringing CAnslim to the forum's attention too. appreciated much.

Yes, I also started to know of IBD and William O Neil from MM. Thank MM a million!

Like what MM said, Follow through/Market in correction is just a system in which some of us may find it useful to follow so that we will not be distracted by all the surrounding noises from news headlines, economists, analysts or any of the forumers' opinon ....
If you use MACD cross over rules for STI, we also can quote that not all bullish crossover will lead to a sustainable up trend but every up trend will begin with a bullish crossover....but of course you can add the volume trend with MACD to be like IBD FT/correction system.
For the current STI MACD uptrend, it started on 3-June at 2793 & is currently at 2955.

[lithium]

So last night is a follow thru again? Do I read it correctly? How do you guys trade with this follow thru and distribution?

[winston]

So last night is a follow thru again? Do I read it correctly? How do you guys trade with this follow thru and distribution?

Ha Ha ... I have given up on this "follow thru and distribution" a long time ago. Too complicated for my simple mind...

In times of Volatility, I only use Catalysts to trade. If the Catalyst is right, I dont have to worry about Market Direction ...

Just like in the Martial Arts, you can learn Hand techniques from Karate, Foot techniques from Tae Kwan Do, Avoidance techniques from Ju Jitsu etc. However, one day, you realize that "Street Fighting" techniques from a Rojak instructor, is not too bad, not that I'm saying that Rojak is better than CANSLIM

[Aspellian]

Thanks to MM for bringing Bradley to our attention... Thanks also for bringing CAnslim to the forum's attention too. appreciated much.

Yes, I also started to know of IBD and William O Neil from MM. Thank MM a million!

Like what MM said, Follow through/Market in correction is just a system in which some of us may find it useful to follow so that we will not be distracted by all the surrounding noises from news headlines, economists, analysts or any of the forumers' opinon ....
If you use MACD cross over rules for STI, we also can quote that not all bullish crossover will lead to a sustainable up trend but every up trend will begin with a bullish crossover....but of course you can add the volume trend with MACD to be like IBD FT/correction system.
For the current STI MACD uptrend, it started on 3-June at 2793 & is currently at 2955.

Hi Bulltick,

interesting observation using MACD. I will keep a look out for that! but this market seems that blue chips moving much more than mid-cap stocks. I am still hoping for the tide to rest so that all boats will rise.... let's hope the uptrend sustains till mid of next month when half yearly results are announced for most of the stocks with Dec year-end, there could be re-ratings for some stocks that out-performed.

[winston]

TOL:-

During the Financial Crisis, everyone made "Market Direction" to be the most important part of CANSLIM.

The theory is that 80% of stocks move in the direction of the market, unless your stock has a very strong "N" ( catalyst ).

After reflecting on things for a while, I think "M" is probably only important at the extremes. If you are getting into an extended sharp correction, then you may want to take notice of Market Direction.

If it's a Trading Range or even a slow correction, then "N" ( catalyst ) is probably more important than "M".

My point is that one should give more priority to "N" ( catalyst ) unless there's a sharp correction or an extended correction.

I would appreciate your thoughts

[millionairemind]

W,

Just my 2 cts here.

If one is lucky enough to catch the punter's stocks that can go up 50% in a day with no rhyme or reason, then there isn't a need to pay attention to mkt direction.

When mkt goes into a correction, we will never know how severe it can be. 2008 is a great example. I never expected it to be that bad.

However, in a non-trending mkt like we are in for the last 10months, then it becomes very difficult to make use of the market direction to trade.

Having said that, it takes alot of foresight to know this year is a non-trending market. I don't have this kind of foresight, unfortunately.

Just my tiny weeny 2 rupiah cents.

mm

[winston]

Thanks MM.

I think I'm gravitating towards giving "N" more priority than "M", unless I see an extended correction or a sharp correction.

And having a Stop Loss with such a strategy may have it's own merit, whether it's a mental stop loss or a real one.

Take care, Winston