From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #1938 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Wednesday, December 12 2001 Volume 02 : Number 1938 In this issue: Re: [CANSLIM] Dangerous Words Re: [CANSLIM] stacking the odds in my favor-buying before the pivot point Re: [CANSLIM] Dangerous Words RE: [CANSLIM] Dangerous Words RE: [CANSLIM] Dangerous Words Re: [CANSLIM] Dangerous Words Re: [CANSLIM] Dangerous Words RE: [CANSLIM] clarification RE: [CANSLIM] clarification ---------------------------------------------------------------------- Date: Wed, 12 Dec 2001 12:06:50 -0700 From: "Patrick Wahl" Subject: Re: [CANSLIM] Dangerous Words It can't go any lower. On 12 Dec 2001 at 7:51, Katherine Malm wrote: > I have been compiling a list of what I call "dangerous" words. Words that indicate emotion is overtaking rational expectations and decision making. Would you all be willing to add to the list? > > Incredible > Unbelievable > Go XXXX, Go > Should (pretty much in any context) > Have you bought XXXX? (Heard for the third time in 2 days) > Everyone should have this in their portfolio (usually heard on CNBC) > This stock is on fire (always heard on CNBC) > Should I buy XXXX? (Heard from your plumber) > The Fed is no longer important > It can't lose > It's a perfect stock > It's a perfect company > > > > Katherine > > > - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 12 Dec 2001 13:18:29 -0600 From: Subject: Re: [CANSLIM] stacking the odds in my favor-buying before the pivot point This is a multi-part message in MIME format. - ------=_NextPart_000_00C3_01C1830F.7D834EB0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable katherine, this was a hypothetical. i didn't look at the PECS chart. = here is 2 recent real trades that i did. on 11/14/01 i tried to buy KKD = at the 38.25 pivot point-didn't get executed, the price jumped past the = pivot point. on 12/5/01 executed ORLY before the pivot point of 34.00 on = gap up fast trade. i am sorry about about my poor writing, don't have = much time, have a corporation to run. david ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, December 12, 2001 10:02 AM Subject: Re: [CANSLIM] stacking the odds in my favor-buying before the = pivot point David, I might be misunderstanding your "32.50" pivot as an intended = hypothetical here. But let me answer based on the PECS chart itself: (1) The cup starts on 7/23 at at high of $27.45. The correction took = it as low as $12.50. That's about 54.5%, a little deep, but we'll write = that off to 9/11. It traveled up the right side of the cup and the high = of the handle was set on 11/1 at $26.82. There's one troubling high = volume day in the handle, but let me set that aside for the moment. That = means that the pivot is set and the buy point is at $26.92. The proper = B/O is then 11/14 when it gapped open. That day the volume was 1.8m = shares, about 3.5 times average. What that means is that you're already = too late at 32 to 32.5. By then, the stock's already moved almost 19% = from the B/O. An entry here would be an extended entry into the stock. = An entry here would also have you sitting today on a round trip ride. (2) So let's focus on the other question, which is "should I buy = early?" This is probably a great example. Let's say you're watching the = cup form and you decide to enter as it reaches near the old high on the = left. Let's say it hasn't yet formed a perfect handle. Let's say on = about 11/5 or so, only a few days in. Let's enter at the close of the = day at 25.99. Look what happens the next day. Big down day on big = volume. Low of the day? 21.69. Down 16.5% from your entry. Close of the = day? 22.85. Down 12% from your entry. It would be easy to rationalize = that by saying "But the next day it reversed and later the stock went on = to breakout, so you would have made money." But how can you know that is = going to happen on 11/6? You don't, and stop loss rules, if you had = risked the early entry, would have at least kept you out with a 7 or 8% = loss. Nearly 1/2 the loss of the low of the day. Hope that answered the question you had in mind. Katherine ----- Original Message -----=20 From: camelot.homes@charter.net=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, December 12, 2001 11:48 AM Subject: Re: [CANSLIM] stacking the odds in my favor-buying before = the pivot point katherine, thank you for your answer. i didn't really ask the = question right. i am actually talking about a fast market in a stock = like PECS in the past. The stock has formed a nice cup and handle, the = technicals and the fundamentals are very good. the stock gaps up at the = opening, on very heavy volume, and the price of the stock goes up very = fast. let's say the pivot is 32.50. Since the accumulation is so fast, = that instead of being able to buy around the pivot point, ones execution might = come back 1-2% higher.It looks like to me in this instance, that buying = before the pivot might be a good idea..Lets say maybe buying at 32.00 = to 32.50. What do you think? david ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, December 12, 2001 6:14 AM Subject: Re: [CANSLIM] stacking the odds in my favor-buying before = the pivot point Hi David, I see there hasn't yet been a response to your questions. I was = sure this one would draw some discussion. As I don't know your own level of experience with CANSLIM and = investing, I thought I'd answer this from a more generic point of view. (1) The idea behind waiting for a good stock to form a solid base = and then break out on volume is to identify that magical point at which = Demand outstrips Supply and Price is pushed higher--essentially the old = Supply/Demand curve from economics class. Assuming the lion's share of = sellers have been exhausted and the stock is one that people would wish = to own, the theory is that any additional demand for the stock will push = the price further. In order for the Price to continue on, the underlying = fundamentals that create value in the company have got to be sound. So = from this point of view, waiting for the B/O is stacking the odds in = your favor. (2) The statistics on B/O's from various technical formations can = be measured, but as you notice in our discussion the other day, the = studies we were looking at in Bulkowski's book make no preselection = based on fundamentals, as CANSLIM forces us to do. Even still, there are = still odds that B/O's will fail. It's just the way it is. (3) If you are extremely practiced and confident in CANSLIM = candidate selection and can build a sound argument for the company and = its potential, it is possible to make an early entry. Afterall, = *some*body is buying it on the right side of the cup. Even still, it is = less risky if the entry comes on a major change in trend or at a point = that is very near substantial recent support. I'm not advocating this, I = think even the best of the best get whacked when they try to do this. = But more importantly, I don't believe that anyone who hasn't established = a long running track record of successful selection should do this at = all. Just way too risky. Katherine ----- Original Message -----=20 From: camelot.homes@charter.net=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, December 11, 2001 6:31 PM Subject: [CANSLIM] stacking the odds in my favor-buying before = the pivot point one thing that might increase ones odds-is buying before the = pivot point is reach, if the stock has hugh volume, great technicals and = fundamentals. what do you all think??? david and also do any of you buy before the pivot point , if the volume is = hugh, and the technicals and the fundamentals are excellent, and the = stock is setting up to break out of a nice base pattern??? - ------=_NextPart_000_00C3_01C1830F.7D834EB0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
katherine, this was a hypothetical. i = didn't look=20 at the PECS chart. here is 2 recent real trades that i did. on 11/14/01 = i tried=20 to buy KKD at the 38.25 pivot point-didn't get executed, the price = jumped past=20 the pivot point. on 12/5/01 executed ORLY before the pivot point of = 34.00 on gap=20 up fast trade. i am sorry about about my poor writing, don't have much = time,=20 have a corporation to run. david
----- Original Message -----
From:=20 Katherine=20 Malm
To: canslim@lists.xmission.com=
Sent: Wednesday, December 12, = 2001 10:02=20 AM
Subject: Re: [CANSLIM] stacking = the odds=20 in my favor-buying before the pivot point

David,
 
I might be misunderstanding your = "32.50" pivot as=20 an intended hypothetical here. But let me answer based on the = PECS chart=20 itself:
 
(1) The cup starts on 7/23 at at high = of $27.45.=20 The correction took it as low as $12.50. That's about 54.5%, a little = deep,=20 but we'll write that off to 9/11. It traveled up the right side of the = cup and=20 the high of the handle was set on 11/1 at $26.82. There's one = troubling high=20 volume day in the handle, but let me set that aside for the moment. = That means=20 that the pivot is set and the buy point is at $26.92. = The=20 proper B/O is then 11/14 when it gapped open. That day the volume was = 1.8m=20 shares, about 3.5 times average. What that means is that you're = already too=20 late at 32 to 32.5. By then, the stock's already moved almost = 19% from=20 the B/O. An entry here would be an extended entry into the = stock. An=20 entry here would also have you sitting today on a round trip=20 ride.
 
(2) So let's focus on the other = question, which=20 is "should I buy early?" This is probably a great example. Let's say = you're=20 watching the cup form and you decide to enter as it reaches near the = old high=20 on the left. Let's say it hasn't yet formed a perfect handle. Let's = say on=20 about 11/5 or so, only a few days in. Let's enter at the close of = the day=20 at 25.99. Look what happens the next day. Big down day on big = volume. Low=20 of the day? 21.69. Down 16.5% from your entry. Close = of the=20 day? 22.85. Down 12% from your entry. It would be = easy to=20 rationalize that by saying "But the next day it reversed and later the = stock=20 went on to breakout, so you would have made money." But how can you = know that=20 is going to happen on 11/6? You don't, and stop loss rules, if you had = risked=20 the early entry, would have at least kept you out with a 7 or 8% loss. = Nearly=20 1/2 the loss of the low of the day.
 
Hope that answered the question you = had in=20 mind.
 
Katherine
----- Original Message -----
From:=20 camelot.homes@charter.net =
Sent: Wednesday, December 12, = 2001=20 11:48 AM
Subject: Re: [CANSLIM] = stacking the=20 odds in my favor-buying before the pivot point

katherine, thank you for your = answer. i didn't=20 really ask the question right. i am actually talking about a fast = market in=20 a stock like PECS in the past. The stock has formed a nice cup = and=20 handle, the technicals and the fundamentals are very good. the stock = gaps up=20 at the opening, on very heavy volume, and the price of the stock = goes up=20 very fast. let's say the pivot is 32.50. Since the accumulation is = so fast,=20 that instead
of being able to buy around the = pivot point,=20 ones execution might come back 1-2% higher.It looks like to me in = this=20 instance, that buying before the pivot might be a good idea..Lets = say maybe=20 buying  at 32.00 to 32.50. What do you think? = david
----- Original Message ----- =
From:=20 Katherine=20 Malm
To: canslim@lists.xmission.com= =20
Sent: Wednesday, December = 12, 2001=20 6:14 AM
Subject: Re: [CANSLIM] = stacking the=20 odds in my favor-buying before the pivot point

Hi David,
 
I see there hasn't yet been a = response to=20 your questions. I was sure this one would draw some=20 discussion.
 
As I don't know your own level of = experience=20 with CANSLIM and investing, I thought I'd answer this from a more = generic=20 point of view.
 
(1) The idea behind waiting for a = good stock=20 to form a solid base and then break out on volume is to identify = that=20 magical point at which Demand outstrips Supply and Price is pushed = higher--essentially the old Supply/Demand curve from=20 economics class.  Assuming the lion's share of  = sellers=20 have been exhausted and the stock is one that people would = wish to=20 own, the theory is that any additional demand for the stock will = push the=20 price further. In order for the Price to continue on, the = underlying=20 fundamentals that create value in the company have got to be = sound. So=20 from this point of view, waiting for the B/O is stacking the odds = in your=20 favor.
 
(2) The statistics on B/O's from = various=20 technical formations can be measured, but as you notice in = our=20 discussion the other day, the studies we were looking at in = Bulkowski's=20 book make no preselection based on fundamentals, as CANSLIM forces = us to=20 do. Even still, there are still odds that B/O's will fail. It's = just the=20 way it is.
 
(3) If you are extremely = practiced and=20 confident in CANSLIM candidate selection and can build a sound = argument=20 for the company and its potential, it is possible to make an early = entry.=20 Afterall, *some*body is buying it on the right side of the cup. = Even=20 still, it is less risky if the entry comes on a major change in = trend or=20 at a point that is very near substantial recent support. I'm not=20 advocating this, I think even the best of the best get whacked = when they=20 try to do this. But more importantly, I don't believe that anyone = who=20 hasn't established a long running track record of successful = selection=20 should do this at all. Just way too risky.
 
Katherine
 
----- Original Message -----
From:=20 camelot.homes@charter.net=20
To: canslim@lists.xmission.com= =20
Sent: Tuesday, December = 11, 2001=20 6:31 PM
Subject: [CANSLIM] = stacking the=20 odds in my favor-buying before the pivot point

one thing that might increase = ones odds-is=20 buying before the pivot point is reach, if the stock has hugh = volume,=20 great technicals and fundamentals. what do you all think???=20 david
 
and also
 
do any of you buy before the pivot point , if  the = volume is=20 hugh,
and the technicals and the fundamentals are excellent, = and the=20 stock is
setting up to break out of a nice base=20 = pattern???
<= /BODY> - ------=_NextPart_000_00C3_01C1830F.7D834EB0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 12 Dec 2001 13:23:04 -0600 From: Subject: Re: [CANSLIM] Dangerous Words a bargain! it can't go much lower(ENRON) - ----- Original Message ----- From: "Patrick Wahl" To: Sent: Wednesday, December 12, 2001 1:06 PM Subject: Re: [CANSLIM] Dangerous Words > It can't go any lower. > > > On 12 Dec 2001 at 7:51, Katherine Malm wrote: > > > I have been compiling a list of what I call "dangerous" words. Words that indicate emotion is overtaking rational expectations and decision making. Would you all be willing to add to the list? > > > > Incredible > > Unbelievable > > Go XXXX, Go > > Should (pretty much in any context) > > Have you bought XXXX? (Heard for the third time in 2 days) > > Everyone should have this in their portfolio (usually heard on CNBC) > > This stock is on fire (always heard on CNBC) > > Should I buy XXXX? (Heard from your plumber) > > The Fed is no longer important > > It can't lose > > It's a perfect stock > > It's a perfect company > > > > > > > > Katherine > > > > > > > > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 12 Dec 2001 14:27:03 -0500 From: David Bojanowski Subject: RE: [CANSLIM] Dangerous Words "Buy more to lower your cost basis." "This stock is down because it's being manipulated by the market makers" Earlier this year there was an article in the WSJ explaining the excuses we make in order to save face. I have it but it's too long to retype them all here. But some of the good ones included: "My portfolio is pretty eclectic" really means "I have no idea what I'm doing" "I'm a conservative investor" really means "I only have half of my portfolio in tech" "It's the summer rally" really means "There's got to be some reason stocks are climbing" "The fund's got a great record" really means "I'm an expert at predicting past performance" and my favorite... "I picked a stock that doubled last year" means "Don't ask what else I picked!" -----Original Message----- From: Patrick Wahl [mailto:pjwahl@attbi.com] Sent: Wednesday, December 12, 2001 2:07 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Dangerous Words It can't go any lower. On 12 Dec 2001 at 7:51, Katherine Malm wrote: > I have been compiling a list of what I call "dangerous" words. Words that indicate emotion is overtaking rational expectations and decision making. Would you all be willing to add to the list? > > Incredible > Unbelievable > Go XXXX, Go > Should (pretty much in any context) > Have you bought XXXX? (Heard for the third time in 2 days) > Everyone should have this in their portfolio (usually heard on CNBC) > This stock is on fire (always heard on CNBC) > Should I buy XXXX? (Heard from your plumber) > The Fed is no longer important > It can't lose > It's a perfect stock > It's a perfect company > > > > Katherine > > > - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 12 Dec 2001 14:29:19 -0500 From: "Tangen, Eric" Subject: RE: [CANSLIM] Dangerous Words This message is in MIME format. Since your mail reader does not understand this format, some or all of this message may not be legible. - ------_=_NextPart_001_01C18343.4B42EFD0 Content-Type: text/plain; charset="iso-8859-1" How bout: 'pro-forma earnings'. ERIC TANGEN - ----- Original Message ----- From: Katherine Malm To: CANSLIM List Posting Sent: Wednesday, December 12, 2001 5:51 AM Subject: [CANSLIM] Dangerous Words I have been compiling a list of what I call "dangerous" words. Words that indicate emotion is overtaking rational expectations and decision making. Would you all be willing to add to the list? Incredible Unbelievable Go XXXX, Go Should (pretty much in any context) Have you bought XXXX? (Heard for the third time in 2 days) Everyone should have this in their portfolio (usually heard on CNBC) This stock is on fire (always heard on CNBC) Should I buy XXXX? (Heard from your plumber) The Fed is no longer important It can't lose It's a perfect stock It's a perfect company Katherine - ------_=_NextPart_001_01C18343.4B42EFD0 Content-Type: text/html; charset="iso-8859-1"
How bout:
'pro-forma earnings'.

 

ERIC TANGEN

----- Original Message -----
Sent: Wednesday, December 12, 2001 5:51 AM
Subject: [CANSLIM] Dangerous Words

I have been compiling a list of what I call "dangerous" words. Words that indicate emotion is overtaking rational expectations and decision making. Would you all be willing to add to the list?
 
Incredible
Unbelievable
Go XXXX, Go
Should (pretty much in any context)
Have you bought XXXX? (Heard for the third time in 2 days)
Everyone should have this in their portfolio (usually heard on CNBC)
This stock is on fire (always heard on CNBC)
Should I buy XXXX? (Heard from your plumber)
The Fed is no longer important
It can't lose
It's a perfect stock
It's a perfect company
 
 
 
Katherine
 
 
- ------_=_NextPart_001_01C18343.4B42EFD0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 12 Dec 2001 11:09:48 -0600 From: "Katherine Malm" Subject: Re: [CANSLIM] Dangerous Words I think that one may win the prize for the day! Katherine - ----- Original Message ----- From: "Patrick Wahl" To: Sent: Wednesday, December 12, 2001 1:06 PM Subject: Re: [CANSLIM] Dangerous Words > It can't go any lower. > > > On 12 Dec 2001 at 7:51, Katherine Malm wrote: > > > I have been compiling a list of what I call "dangerous" words. Words that indicate emotion is overtaking rational expectations and decision making. Would you all be willing to add to the list? > > > > Incredible > > Unbelievable > > Go XXXX, Go > > Should (pretty much in any context) > > Have you bought XXXX? (Heard for the third time in 2 days) > > Everyone should have this in their portfolio (usually heard on CNBC) > > This stock is on fire (always heard on CNBC) > > Should I buy XXXX? (Heard from your plumber) > > The Fed is no longer important > > It can't lose > > It's a perfect stock > > It's a perfect company > > > > > > > > Katherine > > > > > > > > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 12 Dec 2001 11:15:29 -0600 From: "Katherine Malm" Subject: Re: [CANSLIM] Dangerous Words This is a multi-part message in MIME format. - ------=_NextPart_000_0494_01C182FE.4E79E540 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable OKAY....*THAT* wins today's prize! Think that would rate as dangerous = AND lethal! Katherine ----- Original Message -----=20 From: Tangen, Eric=20 To: 'canslim@lists.xmission.com'=20 Sent: Wednesday, December 12, 2001 1:29 PM Subject: RE: [CANSLIM] Dangerous Words How bout: 'pro-forma earnings'. ERIC TANGEN=20 ----- Original Message -----=20 From: Katherine Malm=20 To: CANSLIM List Posting=20 Sent: Wednesday, December 12, 2001 5:51 AM Subject: [CANSLIM] Dangerous Words I have been compiling a list of what I call "dangerous" words. = Words that indicate emotion is overtaking rational expectations and = decision making. Would you all be willing to add to the list? Incredible Unbelievable Go XXXX, Go Should (pretty much in any context) Have you bought XXXX? (Heard for the third time in 2 days) Everyone should have this in their portfolio (usually heard on = CNBC) This stock is on fire (always heard on CNBC) Should I buy XXXX? (Heard from your plumber) The Fed is no longer important It can't lose It's a perfect stock It's a perfect company Katherine - ------=_NextPart_000_0494_01C182FE.4E79E540 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
OKAY....*THAT* wins today's prize! = Think that would=20 rate as dangerous AND lethal!
 
Katherine
----- Original Message -----
From:=20 Tangen, Eric
Sent: Wednesday, December 12, = 2001 1:29=20 PM
Subject: RE: [CANSLIM] = Dangerous=20 Words

How=20 bout:
'pro-forma earnings'.

 

ERIC = TANGEN

----- Original Message ----- =
From:=20 Katherine=20 Malm
Sent: Wednesday, December = 12, 2001=20 5:51 AM
Subject: [CANSLIM] = Dangerous=20 Words

I have been compiling a list of = what I call=20 "dangerous" words. Words that indicate emotion is overtaking = rational=20 expectations and decision making. Would you all be willing to add = to the=20 list?
 
Incredible
Unbelievable
Go XXXX, Go
Should (pretty much in any=20 context)
Have you bought XXXX? (Heard for = the third=20 time in 2 days)
Everyone should have this in = their portfolio=20 (usually heard on CNBC)
This stock is on fire (always = heard on=20 CNBC)
Should I buy XXXX? (Heard from = your=20 plumber)
The Fed is no longer = important
It can't lose
It's a perfect stock
It's a perfect = company
 
 
 
Katherine
 
 
- ------=_NextPart_000_0494_01C182FE.4E79E540-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 12 Dec 2001 14:46:11 -0500 From: "Tangen, Eric" Subject: RE: [CANSLIM] clarification Welcome to the club! Breakouts are a high risk and high reward strategy - if you're batting .500, that's pretty darn good. You should expect 40% success at finding successful breakouts long-term. I just have to get this off my chest for the new subscribers...WON's 7-8% stop below the pivot is a technical stop. It is a rule of thumb based on volatility in the handle region before a stock takes off. It is NOT A MONEY MANAGEMENT STOP!. If you put 7-8% of your trading capital at risk on any one trade, you will eventually pay some really serious Wall Street tuition on the path to becoming successful trader. WON's work has virtually nothing in the area of money management (what he does say is just plain outdated...by 5 stocks with 100k...more appropriate to an era of high commissions and lower volatility). Tharp's books are the best (only?) work in this area and should be required reading before you head out to the great casino that is Wall Street. ERIC TANGEN - -----Original Message----- From: larry l worden [mailto:worden33@juno.com] Sent: Wednesday, December 12, 2001 12:03 AM To: canslim@lists.xmission.com Subject: [CANSLIM] clarification Thanks Tom and Katherien I looked at DGO last week, expensive. I read HTMMIS and get IBD paper and web sight. I am having trouble with BO. I am getting stopped out more than 50%. thanks again I think I have the terms right. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 12 Dec 2001 12:12:16 -0800 From: John Maycock Subject: RE: [CANSLIM] clarification This raises what is for me a very interesting question. What sort of win/loss % and $ can one expect with a true CANSLIM strategy. By win/loss I mean percentage of all trades that are winners versus percent that are losers, regardless of amount. And secondly, what is the ratio of average winning trades to losing trades, where both are expressed in dollars. I have read, and expect that Canslim will have about a 33/66% win loss. Accepting that, then we need to have a better than 2x gain on average for all winners versus losers. What are peoples actual experiences, especially for this year? And does anyone actually calculate this stuff for their own accounts? Again I seem to have an unspecified delay between the time I press the send to the time it gets posted. It is very annoying. 12:10pm PST. Thanks John - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tangen, Eric Sent: Wednesday, December 12, 2001 11:46 AM To: 'canslim@lists.xmission.com' Subject: RE: [CANSLIM] clarification Welcome to the club! Breakouts are a high risk and high reward strategy - if you're batting .500, that's pretty darn good. You should expect 40% success at finding successful breakouts long-term. I just have to get this off my chest for the new subscribers...WON's 7-8% stop below the pivot is a technical stop. It is a rule of thumb based on volatility in the handle region before a stock takes off. It is NOT A MONEY MANAGEMENT STOP!. If you put 7-8% of your trading capital at risk on any one trade, you will eventually pay some really serious Wall Street tuition on the path to becoming successful trader. WON's work has virtually nothing in the area of money management (what he does say is just plain outdated...by 5 stocks with 100k...more appropriate to an era of high commissions and lower volatility). Tharp's books are the best (only?) work in this area and should be required reading before you head out to the great casino that is Wall Street. ERIC TANGEN - -----Original Message----- From: larry l worden [mailto:worden33@juno.com] Sent: Wednesday, December 12, 2001 12:03 AM To: canslim@lists.xmission.com Subject: [CANSLIM] clarification Thanks Tom and Katherien I looked at DGO last week, expensive. I read HTMMIS and get IBD paper and web sight. I am having trouble with BO. I am getting stopped out more than 50%. thanks again I think I have the terms right. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ End of canslim-digest V2 #1938 ****************************** To unsubscribe to canslim-digest, send an email to "majordomo@xmission.com" with "unsubscribe canslim-digest" in the body of the message. For information on digests or retrieving files and old messages send "help" to the same address. Do not use quotes in your message.