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

Re: CANSLIM & Momentum Investing 02 (Nov 09 - Mar 11)

Postby winston » Wed Jan 26, 2011 7:54 pm

kennynah wrote:
but if i had to pin point...i'd say, the breakout principal...to me, it's too late for swing trades...bcos, usually, by the time price goes above the "handle", it would have been quite far away from the low point...


Ha Ha ... I never really understood that part, so I never use that part.

I also always have difficulty visualizing the cup and handle :(

Anyway, I do find the rest very useful, especially "N", News, which I think is stronger than "M", Market Direction.

And I never use it's 7% Stop Loss rule :?
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Re: CANSLIM & Momentum Investing 02 (Nov 09 - Mar 11)

Postby winston » Sun Feb 06, 2011 6:38 pm

TOL:-

Although I've been making fun of "M - Market Direction", I actually do have a lot of respect for it.

When the market turns, I know that it will bring almost everything down with it, unless the counter has a very strong "N - News".

I just gone through all the counters in my portfolio and I dont think they can withstand a strong correction because their "N" is either not recent enough or not strong enough.

So the next question is, "Why am I not selling them into the rally ?"..

I then have a lot of excuses:
1) Some of them are Long Term positions eg. Commodities, Pharmas, Green Energy
2) Some of them are Dividend plays
3) Some of them are RNAV plays
4) Some of them are trading at attractive PEG
etc.

I will need to push myself to raise some cash next week. I know that I always get into trouble when I dont sell when I know that I'm supposed to be selling...

Alternatively, I can try to buy some Put Warrants or Short ETF, if the market does turn downwards next week. My gut feel is that I may still have a few more days before things get ugly ...

And I'm also reminding myself that I should not be putting any new money into the market unless I sell some existing position .,,
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Re: CANSLIM & Momentum Investing 02 (Nov 09 - Mar 11)

Postby kennynah » Mon Feb 07, 2011 5:04 am

imo, taking counter directional positions, as a protection, such as Puts, are not necessarily new positions per se, but insurance tools...

the question is why would i want to buy insurance if i can simply exit with a profit? thus, the answer will determine the course of action...
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Re: CANSLIM & Momentum Investing 02 (Nov 09 - Mar 11)

Postby winston » Mon Feb 07, 2011 6:45 am

kennynah wrote: the question is why would i want to buy insurance if i can simply exit with a profit? thus, the answer will determine the course of action...


Agree. And the difference in due to the Timing for these positions.

These are not Swing nor Position Trades.
1) Some of them are Long Term plays eg. Commodities, Pharmas, Green Energy
2) Some of them are Dividend plays
3) Some of them are RNAV plays
4) Some of them are trading at attractive PEG


All of them need some time to realize their full potential.

As for the Short Term Swing or Position Trades, I have already exited them already.
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Re: CANSLIM & Momentum Investing 02 (Nov 09 - Mar 11)

Postby winston » Wed Feb 09, 2011 9:41 am

TOL:-

Do you remember the last time that you were momentum trading ie. buying high and trying to sell higher ?

At that time, did you think that you would be able to get out, before the music stops ?

So what happened ?

Did the 7% Stop Loss take you out ? Or were you hoping for the market to come back and it dropped further ? And further ? And further ? And further ?

Need to start reminding myself that if I want to be partying in these type of market, I will need to know where's the emergency exit. Better yet, I should only party next to the emergency exit.

because when the fire starts, I would be too disoriented to know where's the fire exit ...
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Re: CANSLIM & Momentum Investing 02 (Nov 09 - Mar 11)

Postby winston » Fri Mar 11, 2011 9:18 am

TOL:-

It's timely to revisit CANSLIM today, especially "Market Direction".

If your stock dont have a strong catalyst eg. SJM, then there's a high probability that it would be going in the direction of Market Direction.

The challenge then boils down to determining "Market Direction".

So do you know what's the "Market Direction" now ? :P

And when "Market Direction" is too obvious, I would like to remind myself of "Black Swan" events, both for the downside and the upside ..
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Re: CANSLIM & Momentum Investing 02 (Nov 09 - Dec 11)

Postby winston » Mon Sep 19, 2011 3:44 pm

TOL:-

If you think that Market Direction is not really that important, this past few weeks is proof that Market Direction is very important.
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Re: CANSLIM & Momentum Investing 02 (Nov 09 - Dec 11)

Postby sesdaqfan » Mon Sep 19, 2011 10:43 pm

winston wrote:TOL:-

If you think that Market Direction is not really that important, this past few weeks is proof that Market Direction is very important.

how do u propose to determine that. (the market direction)
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Re: CANSLIM & Momentum Investing 02 (Nov 09 - Dec 11)

Postby kennynah » Mon Sep 19, 2011 11:00 pm

sesdaqfan wrote:how do u propose to determine that. (the market direction)


this, my friend, is the million dollar question...
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Re: CANSLIM & Momentum Investing 02 (Nov 09 - Dec 11)

Postby sesdaqfan » Mon Sep 19, 2011 11:05 pm

kennynah wrote:
sesdaqfan wrote:how do u propose to determine that. (the market direction)


this, my friend, is the million dollar question...

We do know market direction is important for investors and traders alike. But history shows that the long term trend is always up just like property. Anytime is a good time to buy like what the property developers tell me. But none tell me when to sell.
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