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

Re: CANSLIM & Momentum Investing

Postby Aspellian » Thu Aug 20, 2009 10:55 am

millionairemind wrote:Here's my take..

2. Yes, my understanding is the same. As long as previous low is undercut, mkt remains in a correction until the attempt rally succeeds. When mkt in correction, the volume that it falls will not matter. Some days will fall in higher or lower volume than others. It is the day when it stopped falling and attempting to rally which is considered Day 1 of attempt rally.

Hope this helps.


Thanks very much!! much appreciated <as always ;) >

PROMISE, PASSION, PEACE, POWER, PURPOSE, PLAN, PATIENCE, PERSEVERANCE, PROTECTION
DELIGHT, DISCIPLINE, DILIGENT, DETERMINATION, DESIRE

"Its not whether you're right or wrong thats important, but how much money you make when you're right and how much you lose when you're wrong." - Warren Buffet
User avatar
Aspellian
Boss
 
Posts: 1552
Joined: Fri May 23, 2008 8:53 am

Re: CANSLIM & Momentum Investing

Postby bulltick » Thu Aug 20, 2009 11:58 am

Hi MM/Aspellian,

I am wondering why IBD chooses day 4 as the follow thru day after the day 1 of rally attempt. For Singapore, I can understand as that will mean the trades are for “long term” buy instead of contra trading. Does US market also practice T+3 settlements?

Both US market & SSE are currently in IBD correction phase while STI & HSI should still in rally phase (correct me if I am wrong). Hmmm... :roll:
bulltick
Loafer
 
Posts: 53
Joined: Mon May 26, 2008 10:36 pm

Re: CANSLIM & Momentum Investing

Postby kennynah » Thu Aug 20, 2009 12:13 pm

in US market... you have no money in your account...they wont even let you purchase the stocks... there's no such thing as T+3 concept... no money..no honey, baby....

in fact,i would go further to suggest that MAS should do away with allowing T+3 ... people with no money can initiate a trade and when lost... go bankrupt becos cant pay up..
Options Strategies & Discussions .(Trading Discipline : The Science of Constantly Acting on Knowledge Consistently - kennynah).Investment Strategies & Ideas

Image..................................................................<A fool gives full vent to his anger, but a wise man keeps himself under control-Proverbs 29:11>.................................................................Image
User avatar
kennynah
Lord of the Lew Lian
 
Posts: 16005
Joined: Wed May 07, 2008 2:00 am
Location: everywhere.. and nowhere..

Re: CANSLIM & Momentum Investing

Postby millionairemind » Thu Aug 20, 2009 12:30 pm

bulltick wrote:Hi MM/Aspellian,

I am wondering why IBD chooses day 4 as the follow thru day after the day 1 of rally attempt. For Singapore, I can understand as that will mean the trades are for “long term” buy instead of contra trading. Does US market also practice T+3 settlements?

Both US market & SSE are currently in IBD correction phase while STI & HSI should still in rally phase (correct me if I am wrong). Hmmm... :roll:


Nothing related to T+3 :D

The follow thro' day is based on study of past uptrends and the most powerful uptrends occurs on Day 4-10 of rally attempt.

If I remember correctly, the follow thro' day on March 12 which started this uptrend was Day 4.
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
User avatar
millionairemind
Big Boss
 
Posts: 8183
Joined: Wed May 07, 2008 8:50 am
Location: The Matrix

Re: CANSLIM & Momentum Investing

Postby bulltick » Thu Aug 20, 2009 1:06 pm

millionairemind wrote:[
Nothing related to T+3 :D

The follow thro' day is based on study of past uptrends and the most powerful uptrends occurs on Day 4-10 of rally attempt.

If I remember correctly, the follow thro' day on March 12 which started this uptrend was Day 4.


Thanks MM for your clarification!
bulltick
Loafer
 
Posts: 53
Joined: Mon May 26, 2008 10:36 pm

Re: CANSLIM & Momentum Investing

Postby teachme » Sat Aug 22, 2009 1:00 am

This is my first post on this forum and I have been reading it for some time already. While the number of members of this forum is small, I sense from the posts that some members are no ordinary investors/traders. They probably have graduated to become the minority who can milk money from the market consistently.

millionairemind: Would you mind if I ask you some questions regarding CANSLIM? Your posts on CANSLIM are among the best I have read.

1. Any system, however good, will have its weaknesses. Can you think of the weaknesses of CANSLIM? Knowing that CANSLIM is your method, I am sorry to get you to poke holes in it. But having been burnt before for being too ready to accept fresh investment ideas, I have become more extra-careful now.

2. CANSLIM was a methodology invented for the US stock market. When you apply it to the Singapore market, did you have to make any changes to adjust to the peculiarities of the local market?

Thank you for your time to read this post.
teachme
Loafer
 
Posts: 14
Joined: Wed Jul 09, 2008 10:07 pm

Re: CANSLIM & Momentum Investing

Postby millionairemind » Sat Aug 22, 2009 6:47 am

Hello TM,

Thanks for the kind comments...

You see me too up... I make mistakes until :oops: :oops:

1. CANSLIM has its weaknesses for both Singapore and US markets. For eg., coming off from a DEEP BEAR mkt like we had this year, after the follow thro', the leaders group did not really emerge till a few weeks later, and there were no concrete leaders, more like sporadic leadership stocks like Green Mountain Coffee, unlike previous mkt uptrends back in 2003 to 2007 (apple, google, baidu etc... etc... ), where you can see stocks like the fertilizer group breaking new highs consistently...

Follow thro' only works 2/3 of the time. That is 1/3 of the time follow thro's WILL FAIL. Last year was worse, it failed almost 2/3 of the time... for the years I have been back-testing the data from 2003-2007, it typically fails 1 out of 3 follow thro's. That is Y never WHACK the mkt on follow thro'... spread out your buys and buy higher.... not lower...

2. Yes I did. There is no sector leadership for Singapore mkt. When follow thro' day comes, just buy... :D If follow thro's don't fail, typically it will not touch my 7% stop loss.

At times the mkt reaction can be VERY ERRATIC among the 3 markets (NYSE/NASDAQ/SP500).. go look at July-Aug 2008. There was a follow thro' Nasdaq powered higher, but NYSE went no where!!! and ultimately Singapore went no where.. so one of my trading guidelines for SIngapore/US mkt is to watch all three markets to make sure they are moving in unison.
We hope to see more of your posts in the future.

Hope this helps.

There are very Lao Chiau (old bird) traders/investors like Lena and Winston, good option traders like Kenny and everything also can investors like Bordercollie... I like the mix of the bunch here...

Cheers,
mm
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
User avatar
millionairemind
Big Boss
 
Posts: 8183
Joined: Wed May 07, 2008 8:50 am
Location: The Matrix

Re: CANSLIM & Momentum Investing

Postby kennynah » Sat Aug 22, 2009 1:14 pm

i lost 4 out of 5 of my option positions this month...so...better don't look to me for any suggestions :?

i am going to join GR in mountain cave already....闭门练功
Options Strategies & Discussions .(Trading Discipline : The Science of Constantly Acting on Knowledge Consistently - kennynah).Investment Strategies & Ideas

Image..................................................................<A fool gives full vent to his anger, but a wise man keeps himself under control-Proverbs 29:11>.................................................................Image
User avatar
kennynah
Lord of the Lew Lian
 
Posts: 16005
Joined: Wed May 07, 2008 2:00 am
Location: everywhere.. and nowhere..

Re: CANSLIM & Momentum Investing

Postby -dol- » Sat Aug 22, 2009 1:28 pm

teachme wrote:This is my first post on this forum and I have been reading it for some time already. While the number of members of this forum is small, I sense from the posts that some members are no ordinary investors/traders. They probably have graduated to become the minority who can milk money from the market consistently.


Hi teachme,

You don't have to be of the calibre of MM, winston, kenny etc to post here.

Even I was asked by winston to post here, such was their desperation given the lack of participation. I have to crack my head to post something even I have nothing much of value to say.

So do get your friends and more to come and post here.

It's a chicken and egg situation - so don't be chicken and let's lay more eggs.
It's not the bottom if you are not crying.

Disclaimer: This is not investment advice! Please do your own research and due diligence.
-dol-
Foreman
 
Posts: 372
Joined: Sat Jul 12, 2008 12:24 pm

Re: CANSLIM & Momentum Investing

Postby Aspellian » Sat Aug 22, 2009 3:54 pm

teachme wrote:This is my first post on this forum and I have been reading it for some time already.


Welcome to the forum, "Teachme"!!
Keep your posts coming!

PROMISE, PASSION, PEACE, POWER, PURPOSE, PLAN, PATIENCE, PERSEVERANCE, PROTECTION
DELIGHT, DISCIPLINE, DILIGENT, DETERMINATION, DESIRE

"Its not whether you're right or wrong thats important, but how much money you make when you're right and how much you lose when you're wrong." - Warren Buffet
User avatar
Aspellian
Boss
 
Posts: 1552
Joined: Fri May 23, 2008 8:53 am

PreviousNext

Return to Other Investment Instruments & Ideas

Who is online

Users browsing this forum: No registered users and 10 guests

cron