CANSLIM & Momentum Investing 01 (May 08 - Jul 09)

Re: CANSLIM / Momentum Investing

Postby kennynah » Wed May 21, 2008 2:19 pm

L : hahaha... ya man... as long make money...whatever yellow or black belt pattern oso can lah.... :D
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 » Mon May 26, 2008 9:58 pm

A bit more on the CANSLIM method for those of you who are not familiar..

No. 1 rule - Always cut your losses short... 7-8% max... Y? cos' if you take profit consistently at 20% and losses at 7%...you can be wrong 3X and right once and still come out OK. For stocks that cheong up more than 20% in 3 weeks.. hold longer... that might be your BIG WINNER.. or what John Boik likes to call MONSTER STOCKS..after the book of the same name.

Most investors don't cut their losses.. it is because of the human need to be right. It is impossible to be right all the time in the mkt. We can be wrong about the stock, wrong about our analysis, wrong about our mkt trends and wrong about our analytical ability or too trusting on the brokers' comments.

Cutting losses is the only way we can protect us from the market and our basic human flaws. The No. 1 reason y most traders fail is because they don't cut their losses short and let their winners ride...

When your stock starts showing a loss.. be VERY FEARFUL that it will snowball enough to damage your portfolio...

If you buy a stock with the proper research and at the start of an uptrend, it is VERY DIFFICULT to hit the 7% loss for Singapore stocks. One can verify that with the data from March 24 onwards...

If when the mkt trends up and your stocks is tanking, the mkt is telling you that YOU ARE WRONG..
:mrgreen: :mrgreen: Best is to cut and move on.

As for US stocks, start buying when the top rated stocks with superior earnings as they break out of bases in a mkt uptrend. I have covered a couple of examples earlier in the thread on US stock MA and POT.

Hope this helps.

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 bertyeo » Tue May 27, 2008 8:46 am

always remeber rule no. 1
"Die for something or Live for nothing"
User avatar
bertyeo
Loafer
 
Posts: 81
Joined: Thu May 15, 2008 7:33 am

Re: CANSLIM / Momentum Investing

Postby millionairemind » Tue May 27, 2008 2:54 pm

Now for a little bit of the M in CANSLIM

I have covered a fair bit of that in the US - Market Direction thread.

One thing of special interest is to pay attention to the LEADERS of every rally.

Jesse Livermore was able to spot the leaders of his times and he watches them closely... every rally must be lead by the leaders group. According to his book, he was able to call the 1929 correction right to the hour, when the leaders of his time stopped advancing and started to break down.

During the frenzy that lead up to the March 14 2000 peak of Nasdaq... the following leaders that led the rally started breaking down within 2-3 days of the peak. Here is the list taken from a book "How Legendary Traders Made Millions"

- Comverse Techology, Seibel systems, JDS Uniphase, Analog Devices...

Paying attention to the leaders of each rally will tell you the health of the rally...
"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 LenaHuat » Tue May 27, 2008 7:59 pm

Last Friday, I went to a regional post office hoping to laminate my precis of MM's posting on follow-thru and distribution days and found out that this service is no longer available. Now awaiting a visit to the Bras Basah book centre to get this done. Reading MM's postings is better than reading the book cuz MM adds value :)
Please be forewarned that you are reading a post by an otiose housewife. ImageImage**Image**Image@@ImageImageImage
User avatar
LenaHuat
Big Boss
 
Posts: 3229
Joined: Thu May 08, 2008 9:35 am

Re: CANSLIM / Momentum Investing

Postby blid2def » Tue May 27, 2008 10:18 pm

LenaHuat wrote:Last Friday, I went to a regional post office hoping to laminate my precis of MM's posting on follow-thru and distribution days and found out that this service is no longer available. Now awaiting a visit to the Bras Basah book centre to get this done. Reading MM's postings is better than reading the book cuz MM adds value :)


The entrepreneurial amongst us will be dashing out to print and laminate a few thousand copies and make them available for sale. :D
blid2def
Permanent Loafer
 
Posts: 2344
Joined: Tue May 06, 2008 7:03 pm

Re: CANSLIM / Momentum Investing

Postby kennynah » Tue May 27, 2008 10:28 pm

i buy a few...paste one at the office, one in the room, one in the shower room, one in the dung room, one on top of TV set...

L : i get from u ok... :lol:
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 » Tue May 27, 2008 10:41 pm

Can reserve one copy for me also?? :mrgreen:

So that I can KICK MYSELF IN THE BEHIND when I lose money in correction by "ge-kiang" going long and then can read it and say - TOLD YOU SO :P

L - you are too kind in your comments.. :)
"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 LenaHuat » Wed May 28, 2008 10:38 am

Hi K and MM
Yes, certainly. I can be pretty slow abt moving around in city centre (that means things will be akan datang for some time) but I WILL get them laminated for both of U.

(Sidenote: So many threads, I almost missed this).
Please be forewarned that you are reading a post by an otiose housewife. ImageImage**Image**Image@@ImageImageImage
User avatar
LenaHuat
Big Boss
 
Posts: 3229
Joined: Thu May 08, 2008 9:35 am

Re: CANSLIM / Momentum Investing

Postby pepper » Wed May 28, 2008 2:02 pm

LenaHuat wrote:Last Friday, I went to a regional post office hoping to laminate my precis of MM's posting on follow-thru and distribution days and found out that this service is no longer available. Now awaiting a visit to the Bras Basah book centre to get this done. Reading MM's postings is better than reading the book cuz MM adds value :)


Hi LenaHuat,

perhaps before u laminate them, u shd get MM to autograph them first, then laminate. : :lol:
User avatar
pepper
Coolie
 
Posts: 165
Joined: Fri May 16, 2008 4:17 pm

PreviousNext

Return to Other Investment Instruments & Ideas

Who is online

Users browsing this forum: No registered users and 10 guests

cron