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

[lithium]

Haha didn't know it's that bad

[learn2win]

Whether is is IBD,blogs,newletters,etc. It will just be one of the indicators that what you should be doing at the current moment. Long or short or do nothing.

Derive your own trading strategy with O'Neil as one of your decision making indicators. I am sure it will be useful.

[lithium]

Beware of Distribution Days Soon After Follow-Through Day

KS: In the last two issues of IBDextra!, we talked a lot about
follow-through days. We mentioned how no new market uptrend since the 1880s
has started without one. But we also noted that around 25% - 30% of
follow-through days end up failing - that is, they don't lead to a sustained
uptrend, and the market falls back into a correction fairly quickly.

And as we said in May, if you see distribution days - that is, days of heavy
selling - right after a follow-through day, watch out! That can spell
trouble for the new rally.

That's what happened in recent weeks. We saw distribution soon after the
June 2 and June 15 follow-through days, sending the market back into a
correction each time.

Another distribution day! Looks like CANSLIM's follow thru days fails more than 30% nowadays? Like to hear experience of the CANSLIM followers regarding these follow thru days.

[millionairemind]

L bro,

Technically, the uptrend is not broken yet...

But having said that, NO method is FOOLPROOF....

One has to have an edge trading the market if not one will DIE PAIN PAIN..

Sticking to the rules helped me avoid 2008 like the plague and come out +ve for that year. CANSLIM is NOT for everyone.... it suits my personality, so I like it.

There are thousand and one ways to make money in the market... but one has to consider the risk/reward ratio before committing.

Back in 2009, there was only 2 follow thro's and both worked perfectly... the most impt. one being the one on March 12, near the market bottom on March 9.

If this one fails, it will be the 3rd failure in 2 months!!!

Cheers,
mm

[learn2win]

Beware of Distribution Days Soon After Follow-Through Day

KS: In the last two issues of IBDextra!, we talked a lot about
follow-through days. We mentioned how no new market uptrend since the 1880s
has started without one. But we also noted that around 25% - 30% of
follow-through days end up failing - that is, they don't lead to a sustained
uptrend, and the market falls back into a correction fairly quickly.

And as we said in May, if you see distribution days - that is, days of heavy
selling - right after a follow-through day, watch out! That can spell
trouble for the new rally.

That's what happened in recent weeks. We saw distribution soon after the
June 2 and June 15 follow-through days, sending the market back into a
correction each time.

Another distribution day! Looks like CANSLIM's follow thru days fails more than 30% nowadays? Like to hear experience of the CANSLIM followers regarding these follow thru days.

Yo bro,

As what MM mentioned, no method is perfect. It have to suit your character.

If you those that buy heavily once the uptrend is confirmed and lousy in cutting losses, then the 30% failure will wipe you out! But if you are disciplined, a single uptrend like the previous one in March will help you make tremendous gain.

Seems like IBD is having good edge at the current market condition.

[lithium]

Thanks Bros,

I like the way CANSLIM pick stocks.

But I don't like to buy and sell based on follow thru's and distributions. I use different method to go in and out. It doesn't suit me.

[millionairemind]

But I don't like to buy and sell based on follow thru's and distributions. I use different method to go in and out. It doesn't suit me.

As long as it works for you.

[lithium]

Yeap, there are thousands of methods, just have to find one that suits you.

[winston]

I use different method to go in and out.

Hmm .... different method to go in and out ?

[kennynah]

I really dun know to cone out differently from going in

Lithium must share his skills. Hahaha