From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #340 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk X-No-Archive: yes canslim-digest Saturday, July 25 1998 Volume 02 : Number 340 In this issue: RE: [CANSLIM] Not CANSLIM - Today's Market Downturn RE: [CANSLIM] Not CANSLIM - Today's Market Downturn RE: [CANSLIM] Not CANSLIM - Today's Market Downturn [CANSLIM] Ian Woodward's HGS discussion area Re: [CANSLIM] Observations CDWC, SYMX, DELL, etc. Re: [CANSLIM] Possible Shorts Re: [CANSLIM] Re: [NONCANSLIM] Gapping, Elder, Walter,Jeffry Re: [CANSLIM] William O'Neil Re: [CANSLIM] Observations CDWC, SYMX, DELL, etc. Re: [CANSLIM] William O'Neil Re: [CANSLIM] Shorts Re: [CANSLIM] Not CANSLIM - Today's Market Downturn Re: [CANSLIM] Possible Shorts Re: [CANSLIM] Possible Shorts [CANSLIM] Trading for a living Re: [CANSLIM] Not CANSLIM - Today's Market Downturn Re: [CANSLIM] Re: [NONCANSLIM] Gapping, Elder, Walter,Jeffry re: [CANSLIM] Psychology and investing: What I personally want to improve. [CANSLIM] Psychology [CANSLIM] Shorting DELL, YHOO & AMZN Re: [CANSLIM] Psychology re: [CANSLIM] Psychology and investing: What I personally want to improve. Re: [CANSLIM] Re: [NONCANSLIM] Gapping, Elder, Walter,Jeffry Re: [CANSLIM] Shorting DELL, YHOO & AMZN Re: [CANSLIM] Shorting DELL, YHOO & AMZN Re: [CANSLIM] Shorting DELL, YHOO & AMZN [CANSLIM] OFF-TOPIC: HUMOR- Good Times Spoof Re: [CANSLIM] Shorting DELL, YHOO & AMZN Re: [CANSLIM] Psychology ---------------------------------------------------------------------- Date: Sat, 25 Jul 1998 10:12:55 -0700 (PDT) From: dbphoenix Subject: RE: [CANSLIM] Not CANSLIM - Today's Market Downturn <> It may have been. Don't know if it is anymore. So much of this kind of thing floats around, like "all gaps must be filled" and "volume always precedes price". It's sort of like "i before e except after c". None of it is true, but that doesn't stop people from believing it. I think the problem most people have with options is that they forget that the options are tied to the underlying stock, and the stock must be analyzed just as thoroughly as if it were going to be purchased. You must do the same research, draw and follow the same charts, develop the same buy and sell strategies. Then do whatever you're going to do with the option. Options are unforgiving. You not only have to be right, you have to be right NOW, or at least pretty da** quick. And you have to pay a premium for them, which evaporates like a popsicle in July if things aren't working out the way you'd planned and you decide to hold them for a while. Hope, fear and greed can damage you pretty severely in stocks. They can kill you in options. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Sat, 25 Jul 1998 13:32:47 -0400 From: Robert Bomba <73223.2767@compuserve.com> Subject: RE: [CANSLIM] Not CANSLIM - Today's Market Downturn >> My lack of planning, my investing too heavily, and then not having any stop in my head for when to retreat were all stupid moves. It is just that simple. << I keep a binder that when I make a trade I immediately write the symbol, # of shares, stop loss & my target. I do this for both longs & shorts. I don't use actual stops but between 3:30 & 4 pm I check each of my positions real time. If any are at either the stop loss or the target they are gone. No questions asked. I also never move my stop loss away from the trade. IOWs if the stop loss is at 60 I'll move it up on a long position but never down. Just flip it if I was short. I also never move my target up or down "pigs get eaten". If I were you I would go over my positions & figure out what my stop loss points should have been & target points should be. If they are sells sell IMHO. Also if I were you I would get Elder's "Trading for a living" & his work book. Good Luck! Bob - - ------------------------------ Date: Sat, 25 Jul 1998 17:47:52 +0200 From: Johan Van Houtven Subject: RE: [CANSLIM] Not CANSLIM - Today's Market Downturn At 07:21 PM 24-07-98 -0400, you wrote: >Well, you guys have me totally confused as usual. Sorry to hear that. I'll offer you this: When I am confused and can't make a focused decision quickly, I go to cash. Then I sit back comfortabily and think it over. But just because that has worked for me, does not automatically mean it will work for anyone else. One other thing: As DB has often said, you must have a plan. That plan has to include what you will do when things go terrific, when your stocks does nothing and when things go the wrong way. Did you have a plan? Just something to think about. Johan Van Houtven / CLICK! N.V. - - ------------------------------ Date: Sat, 25 Jul 1998 17:52:38 +0200 From: Johan Van Houtven Subject: [CANSLIM] Ian Woodward's HGS discussion area Dan wrote: >Your *smiley* with a "B" suggests you wear glasses, >Johan? Not knocking it, I wear glasses myself! Yep, I wear glasses? Is that important to you? When I was about 11 years old I started doing a lot of microscopy (sp?). At 1200x you need a very intensive light source. Ruined my eyes for ever. >Thanks for the links to Ian. There was (and maybe still is) an area in >AOL that was a kind of CANSLIM forum. It was sort of Ian's spot at >AOL. I just cancelled my AOL, so that's out. In a way you're lucky then, because I hear that Ian has transferred his HGS area from AOL to Telescan. That's the: http://nt-chat0.telescan.com:8080/gotomenu link. >I haven't read much by >him, but encountered some extremely generous praise of Ian Woodward, >and really want to avail myself of his >ideas/teachings/knowledfge/wisdom/musings, whatever it is he does. I'd classify (what a terrible word) him as "advanced WON". O'Neil on steroides. Also like his "style" and "language". I love his usage of words and expressions like "mumbo jumbo", "swash bucklers", "Samurai types", "Ian High Jump Indicator", "Iandex", "Mattress Stuffers", "Cha cha cha investing", etc. Johan Van Houtven / CLICK! N.V. - - ------------------------------ Date: Sat, 25 Jul 1998 18:04:42 +0200 From: Johan Van Houtven Subject: Re: [CANSLIM] Observations CDWC, SYMX, DELL, etc. Dave wrote to DB re: DELL : >Db, > >You got your 102 today - now what? > >Dave C. >>dbphoenix wrote: >>As far as DELL goes, root for 102. That would be a good entry point. >> >> --Db May I put in my $0.02? I even stated "I think you'll be lucky if it hits 104-105" or something similar. So DB's 102 looks rather clever compared to my, now dumbo-looking, 104-105. Did I buy? No. Why? Things changed dramatically. The "M" factor. The OTC: This wasn't looking like a normal of-the-shelf pullback anymore. The DJIA had already broken the 50EMA the day before and the SPX was doing it on the day DELL could have been bought @ 102. Breaking the 17EMA was bad enough (for me), but the 50EMA? That brings out the growling grizzly bear in me. Why did I say "you'll be lucky if it hits 104-105" back then? Because it was and is my believe that during, what I consider a "normal" pull-back of the indices, it would have hit that area and no lower. It might have hit the 102 area but only during a several-minute lasting downward spike. The kind where MMs take out a bunch of stops (This is something you can easily spot on on T&S list in real-time after doing it for a while). So the fact that it got to 102 without any problems, was a confirmation (for me) that we likely weren't in a standard pull-back of the market indices. Intra-daytraders point of view? They could have an entirely different perspective. Dipping below 102 (it went to 100 7/8) there was quite a high probability for a bounce back up to the 102 area. Looking at the intraday chart and T&S list, I'd say any decent daytrader could have seen this bounce comming. It closed at 104 7/8. Why was that bounce form a daytraders point of view so predictable? I think nobody knows for sure. I'll bet it has to do with there being some many people out there believing that it will happen and taking action on it, so that effectively they make it happen themselves. Like a self-fulfilling prophecy. Dave, I know this might not help much, but that is the best I can do right now. I look forward to reading DB's reply to your question. Johan Van Houtven / CLICK! N.V. - - ------------------------------ Date: Sat, 25 Jul 1998 10:48:58 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Possible Shorts These are a few of the stocks I'm watching. They all have negative charts. Some have just tested major support and failed. Some look to be just as ready to rally as to fail, depending on the market. The groups they belong to are all weak as well. Some have already lost a substantial percentage of their value but may still be worth trading. Comments welcome. ASI DMMC CVC IDTC PZZA TBA Incidentally, I always look at every potential buy as a potential short and vice-versa. It helps keep me out of trouble when I can stick to the discipline. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Sat, 25 Jul 1998 10:54:35 -0700 From: Dan Cash Subject: Re: [CANSLIM] Re: [NONCANSLIM] Gapping, Elder, Walter,Jeffry TM wrote: > > "Had you applied MACD-Histogram, Stoch., triple screen to an index > such > > as the S&P500 in you decision making process to bail on the 17th?" > > Hi Dan, > > Yes in a way, SPY and DIA, trust funds are based on indices. > MACD-Histo was (and had been) in the area above the zero line and > sloping downwards, where I understood I should be looking to sell > according to Elder. It is first nature for me to not work through the market on a daily basis. I have to force myself to think it through. And I am still learning all this stuff. I look at a MACD-Histo of the SP500 and I see that the daily bar reversed direction on 7/9 and rather steeply at that. Prices still in assention, A&D line in a rather anemic recovery, stoch peaked on the 8th, MACD starting to chatter. So, in hind site, if the MACD-Histo is to be valued, the warning signs were there earlier. Now on a weekly chart, this is not too clear to me. The M-H started to slope down on 4/9, along with a correction in the indices. M-H went negative considerably and was much lower than the recovery of price by the 17th. So is this a divergence? Is it a sign of weakness? And the A-D is in a shallow range. The weekly picture is not clear to me. So what will I be looking for to enter some trades again? M-H reversal of slope for a few bars, and some indication that A-D lines are showing some signs of health??? At any rate, with not much more than a discomfort, and not liking the A-D lines, I placed stops on the few issue I had on Monday, aatt being one, and was stopped out that day. I had gone through an exercise with Tom about a week or so ago concerning stops having not used them before. Needless to say, a big smile of appreciation. As I came out well. Do you use any of his other indicators? > > > > > Jeffry's comments were invaluable. He was talking about "M"; my > stocks "were" the market. I spent time reading Elder, reading Jeffry, > reading Martin Zweig to interpret Jeffry, reading Jeffry to interpret > Martin Zweig, reading WON, running to the computer looking at charts, > volume, distribution. > > I used the 2nd screen (Slo-Sto) to determine a selling point trying to > sell on the 16th based on the results of the 15th, but my stops were > not hit. I raised the stops on the 17th based on the screen of the > 16th and sold that day. The second screen kept me in ~24 hours longer > and enabled me to sell higher. > > My goal going in was to preserve capital and beat the money market > rate. I did better than that. > > The dilemma I'm having now is that I can't seem to find a good entry > point in my paper trading with CS, mostly I would have been too late > for much profits after expenses. If I have to put enough cash in to > shave points for profits, this kind of trading will not be for me. > There is something critical that I am missing yet-I'm going to study > subtle accumulation more. Connie's tutorials helped me here. Don't know if you were involved while he was actively posting prior to the cleansing wars, but they are available in the archives. And have kept me out of issues that fizzled. Of course, I either impulsively enter or wait until the situation is confirmed to death. I have a difficult time in evaluating the current evidence clearly. Possibly this is due to my rather rusty skills of observation in my avocation of Forensic Ornithology! > > > > > Thank you, I always enjoy your contributions. Harpo speaks. Thanks for the response. Dan. > > > > > TM > > > > ---Dan Cash wrote: > > > > > > > Thanks, > > Dan > > > > Tannis Malone wrote: > > > > > Thanks to the discussion about distribution while prices are rising > > > and the triple screen, I closed out at near highs on my spiders and > > > diamonds on the 17th. It is so nice to have a method. > > > > > > Also, I am afraid I am turning into a bit of a Walter (not a bad > thing > > > :)), reading Elder and WON at night. Since you are the resident > expert > > > on Elder, Walter would you mind explaining what we should be looking > > > for in the way of watching the gapping that has happened in some of > > > the stocks these last few days? The way it is played out seems to be > > > another confirmation of market health etc. > > > > > > _________________________________________________________ > > > DO YOU YAHOO!? > > > Get your free @yahoo.com address at http://mail.yahoo.com > > > > > > - > > > > > > > > > - > > > > > > _________________________________________________________ > DO YOU YAHOO!? > Get your free @yahoo.com address at http://mail.yahoo.com > > - > - - ------------------------------ Date: Sat, 25 Jul 1998 13:57:19 -0400 (EDT) From: Deepak Kapur Subject: Re: [CANSLIM] William O'Neil Does anyone have online O'Neil's articles in the series appearing in IBD on Mondays? I got the one for the upcoming Monday, but missed the ones that have already appeared. Thanks, Deepak - - ------------------------------ Date: Sat, 25 Jul 1998 11:04:50 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Observations CDWC, SYMX, DELL, etc. <> Now it's my turn to laugh, since my reply consisted of two sentences. But I did write a long-winded post about market psychology which applies here. When Greenspan made his comments, I expected the usual pullback followed by the usual rally the next day or day after. But that didn't happen. IMO, the earnings picture was finally making an impression on investors. I was careful not to act on this, but to focus on the charts and the volume instead, and that caused me to sell several stocks, not my view of what I thought was happening. I like the fact that the Naz and several leading stocks bounced off strong support so nicely, but I'm not as enthusiastic as I was at 1740. Why? History. Probabilities. Odds. Right now I'm just piddling around. I see no point in taking any large and/or risky positions at this level. I'd much rather wait for the next correction and load up then. Last January will happen again, though probably not in January. It always does. And then we can go through the legs all over again. One reason I'd like to see a major correction is so that we can start looking for new leaders. Dell and Lucent and so forth just don't have that much juice left, compared to the distance they've come. Even the internet stocks are looking tired. I'm hoping it'll be chips or chip equipment or disk drives. The bargains there are criminal. But who knows? Y2K again? They sure fizzled out this go-round. Healthcare? All we can do is watch and wait. I'm not going to go for those few extra points when breadth just gets worse and worse. Bawk! Bawk!! - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Sat, 25 Jul 1998 11:17:07 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] William O'Neil <> http://ibd.infostreet.com/won/ - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Sat, 25 Jul 1998 11:42:45 -0700 From: Dan Cash Subject: Re: [CANSLIM] Shorts Yes, I am interested. Please include me. Dan dbphoenix wrote: > Anyone interested in a shorting thread? Or setting up a separate > e-mail group to discuss shorting over the next few weeks? > > --Db > - - ------------------------------ Date: Sat, 25 Jul 1998 13:50:22 -0500 From: Dave Cameron Subject: Re: [CANSLIM] Not CANSLIM - Today's Market Downturn > < love/hate > relationship with the Oregon Brewers' Festival) but I am reminded of a > statement in Motley Fools' book - something like "90% of all options > expire > worthless." Is this even remotely true?>> Actually, I think it is pretty close. BUT... the typical investor BUYS options - and usually calls. Very few non-pros SELL options. Many professionals make a slow, steady stream of money by selling CALLS & PUTS. The option writer won't make much - but will pocket the fee for selling a good majority of the time. Dave C - - ------------------------------ Date: Sat, 25 Jul 1998 14:05:45 -0500 From: Dave Cameron Subject: Re: [CANSLIM] Possible Shorts Db, I won't even call you a wuss for not buying Dell at 102... I wouldn't either. If I owned it, I certainly wouldn't sell either. But... I will comment on 5 of the 6 stocks you posted. Dave C. dbphoenix wrote: > > These are a few of the stocks I'm watching. They all have negative > charts. Some have just tested major support and failed. Some look to > be just as ready to rally as to fail, depending on the market. The > groups they belong to are all weak as well. Some have already lost a > substantial percentage of their value but may still be worth trading. > Comments welcome. > > ASI -- no comment. > DMMC -- I like the chart on this one; it looks a lot like the stocks I still own - good base - recent attempted breakout - failure due to recent market action (most likely). > CVC -- Too extended to buy. Wouldn't short - too strong a stock. > IDTC -- My experience has been these kind of stocks trade between 25 and 28 for quite a while... > PZZA -- Don't like the big negative price drop from about 3 weeks ago; earnings are too good to short. > TBA -- Looks like a chart of the Russell 2000 ;-> - - ------------------------------ Date: Sat, 25 Jul 1998 12:39:02 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Possible Shorts <<> CVC -- Too extended to buy. Wouldn't short - too strong a stock.>> One would think so. Monday will be interesting. The stock didn't trade at the outset on Friday, then when it opened it shot up 2.5, choked at the 17d and fell back to basically unchanged for the rest of the day. It's not ridiculously overextended in terms of the 200d, but it does look vulnerable. And the 50d is 15 points away. <<> IDTC -- My experience has been these kind of stocks trade between 25 and 28 for quite a while...>> That's OK. Three points is fine, though given the angle of descent, it may be a bit more. It could very well just base here. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Sat, 25 Jul 1998 14:03:52 -0600 From: "Dan Sutton" Subject: [CANSLIM] Trading for a living I finally have sat down to begin reading Elders Trading for a Living. There has been a lot of talk here about the triple screen and the various indicators espoused by Mr. Elder. I have to say that after reading only two chapters in the book I really think it can't possibly be any more informative or present more valuable information than what has already been covered. In his discussion of the psychology of the trader, the number of examples he examines that hit close to home are amazing. With less than 75 pages under my belt, I highly recommend this book to anyone who wants to understand market psychology and trading it. - - ------------------------------ Date: Sat, 25 Jul 1998 16:41:10 -0400 From: Al French Subject: Re: [CANSLIM] Not CANSLIM - Today's Market Downturn > > I'm not sure what to do, honestly. If the market goes back to where > it was and I sell out, only to have it go higher, I will be disgusted > with myself. > > Nelson > With options, even if the market should go back to where it was, you'll still be down as the result of the time decay in the premiums. And if the volatility is less than when you bought them, the premiums will be reduced much more. The price of options depends on the volatility of the stock and the time to expiration usually more than the price movement of the underlying stock. That's why professionals usually are option sellers. They usuallly make profits on the time decay and the reduced volatility even when the buyers are right on the stock price movement. Al French alfrench@erols.com - -- - - ------------------------------ Date: Sat, 25 Jul 1998 13:56:22 -0700 (PDT) From: TM Subject: Re: [CANSLIM] Re: [NONCANSLIM] Gapping, Elder, Walter,Jeffry Dan, "It is first nature for me to not work through the I have to force myself to think it through." You sound like my husband, decisive and good at winging it (in life). For me, I think that unless I have all my ducks in a row, things don't work out as well. "So, in hind site, if the MACD-Histo is to be valued, the warning signs were there earlier". I've been watching MACD-Histo for awhile, If I understand Walter and Elder, whenever the bars become positive, you should be looking to sell. Not that you will or will want to right then, but it becomes more realistic as an option. It seems like a paradox, you want the bars increasing in length because the price goes up then; at the same time while the price is rising, some buyers are remorseful waiting to bail out. "Now on a weekly chart, this is not too clear to me" I haven't done this analysis for long, but so far I have never had a weekly chart work out. At first I thought it was me, now I'm relieved because it's probably the market :). "Connie's tutorials helped me.... Don't know if you were involved while he was actively posting prior to the cleansing wars, but they are available in the archives." I've read them all, they are wonderful, it's not the same when it's not real-time. He's got answers in OBV/MF and parabolics. IMHO, following the money is a big deal, I miss his posts (and Tom's). "Possibly this is due to my rather rusty skills of observation in my avocation of Forensic Ornithology!" Well my background in nursing will lead me to Eller, he uses what I will call triage to determine if the market is going up, down, or sideways; then depending on what the market is doing, uses indicators for the specific situation/result. I can relate to that. In a cardiac arrest, I have to know enough so that I don't get orthopedic supplies ready and then a whole lot more to do the job right with the appropriate equipment. Right now, I'm trying to learn what the tools do and when they are appropriate. Thank you for the scans. You've probably gone over this before and I didn't get it. What is the possible range of group strength? TM _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Sat, 25 Jul 1998 23:37:33 +0200 From: Johan Van Houtven Subject: re: [CANSLIM] Psychology and investing: What I personally want to improve. Do I personally know all there is to know about the how psychology applies to the markets? Far, far from it. The more I learn, the more I realise I have much more to learn. (But don't let that take all your hopes away. I'm told even Eistein had that 'problem'. ;^) I know a litle bit about, maybe even a bit more that your average investor. I've personally witnessed 2 people go under in the markets. I'm pretty sure I can pinpoint the primary reason for their misfortune. It was ego, pride and rigidity. Not willing to admit that one has made a mistake. Have been in that position myself, and at times still have to remind myself that ego, pride and rigidity do not work in the markets. Currently, the most important thing I need to and am working on is on holding longer. Letting my winners ride. I'm getting better at it, but I'm not there yet. Maybe half way. Wanna laugh yourself silly? I sold most of my holdings between the 9th and the 14th. Looking back on it now I fully realise how stupid that was. After noticing that I did rebuy some of those holdings and some others but only to do some several-day trading, as the markets already looked pretty extended. Can't really complain about my net YTD return though: +30.9%. That for _me_ I view as quite reasonable since I've been investing for only two and a half years now. On the other hand I also realize that I could easily have netted 60% and more if I had kept my winners longer. I do have the selling-your-losers-quickly thing down though.Very happy, and yes, even proud (for myself!) about that. I've posted this because I do not want anyone to think I've got it all figured out. Far from it. But I like that: Still lots of interesting things to learn out there for me! B^) Johan Van Houtven / CLICK! N.V. - - ------------------------------ Date: Sat, 25 Jul 1998 23:16:48 +0200 From: Johan Van Houtven Subject: [CANSLIM] Psychology After reading some of the rather sad stories here I think we could benefit from a thread on the subject of psychology. Both crowd psychology (the way crowd behaviour influences the markets) and personal psychology (how you can be your own worst enemy without ever realizing it). A better understanding of crowd behaviour and how it influences markets has helped me a lot. Understanding how the human brain works has helped me to control my emotions when they need to be controlled. Johan Van Houtven / CLICK! N.V. - - ------------------------------ Date: Sat, 25 Jul 1998 22:19:40 +0200 From: Johan Van Houtven Subject: [CANSLIM] Shorting DELL, YHOO & AMZN Tim wrote: >Anyway I sincerely hope no one in this group would seriously consider >shorting DELL. To all: That is da** good advice IMO (in my opinion). Shorting DELL: Been there, done that. Almost 2 years ago I learned the hard way that there are too many people out there that will buy DELL on any serious dip, for me to consider shorting DELL again. FWIW (for what it is worth) I'll add that IMO you also should not try to short YHOO (a market leader of sorts in a group that has shown that is can disobey general market sentiment) or AMZN. Especially AMZN *IMO* should not be shorted. (Unless you are a top notch professional daytrader with the necessary top level trading equipment like instant order execution and confirmation and top quality RT data and charting.) Why? AMZN gets a high level of daytrading activity from the pro's. And has a history of short squeezes. All of the above is of course just opinion and believes, not verifiable fact. I'm not saying that you can not succesfully short DELL, YHOO or AMZN. I'm saying that I think there are better, easier if you will, shorting candidates out there. Just hoping that I can prevent someone from losing money. One more thing to think about while I'm at it: Consider this: Why even short at all? Must you be active in the markets all the time? Shorting is a magnitude more difficult than going long IMO. Some of WON's opinion on shorting is on pages 113 and 114 of HTMMIS. Last but not least: I'm not suggesting that the period to starting shorting is upon us now. For me personally it is time to prepare for the eventuality. No more, no less. Johan Van Houtven / CLICK! N.V. - - ------------------------------ Date: Sat, 25 Jul 1998 17:41:55 -0400 (EDT) From: Deepak Kapur Subject: Re: [CANSLIM] Psychology >After reading some of the rather sad stories here I think we could benefit >from a thread on the subject of psychology. Both crowd psychology (the way >crowd behaviour influences the markets) and personal psychology (how you >can be your own worst enemy without ever realizing it). > >A better understanding of crowd behaviour and how it influences markets has >helped me a lot. Understanding how the human brain works has helped me to >control my emotions when they need to be controlled. Johan, That would be a great idea. Also, given that some folks are thinking of shorting stocks, does any body know of any brokerage firm (preferably discount but full are okay also) that give interest on short sales? Thanks, Deepak - - ------------------------------ Date: Sat, 25 Jul 1998 18:24:23 -0400 From: Robert Bomba <73223.2767@compuserve.com> Subject: re: [CANSLIM] Psychology and investing: What I personally want to improve. >> Wanna laugh yourself silly? I sold most of my holdings between the 9th and the 14th. Looking back on it now I fully realise how stupid that was. After noticing that I did rebuy some of those holdings and some others but only to do some several-day trading, as the markets already looked pretty extended. << I'm not laughing. I don't know what money management techniques you are using but selling & buying back may be a very smart move. You never said if you made money on the trades but assuming you did, nobody & I mean NOBODY ever lost a dime taking a profit. If you have a good system & it's making you money don't second guess yourself. Trade the system. If the system doesn't make you money find a new system. Bob - - ------------------------------ Date: Sat, 25 Jul 1998 15:42:13 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Re: [NONCANSLIM] Gapping, Elder, Walter,Jeffry <> Don't mean to butt in, but it should be made clear that you two are talking about very short-term trading. A triple screen of some sort, whether Elder's or someone else's, can be very useful for narrowing down an entry point. But a MACD histogram is not necessarily appropriate for someone who'd rather hold on through the generally ascending wobbles than exit and enter and exit and enter day after day. For an intermediate-term trader or investor, there's no reason to exit a position before the MACDw crosses downward unless some major moving average or other major support has been broken to the downside. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Sat, 25 Jul 1998 16:03:24 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Shorting DELL, YHOO & AMZN <> You needn't be active in the market all the time, but there's no good reason why one shouldn't make money on the way down as well as on the way. Unless, of course, one hasn't learned how to trade the long side well or hasn't dealt with discipline or emotion issues. The discipline required on the short side makes the discipline required on the long side look like a cakewalk. Personally, I never leave my computer when I'm short. I can't imagine anyone who's away from a computer for eight hours a day even considering shorting. But I'm not the shorting police. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Sat, 25 Jul 1998 19:41:27 -0400 From: Robert Bomba <73223.2767@compuserve.com> Subject: Re: [CANSLIM] Shorting DELL, YHOO & AMZN >> The discipline required on the short side makes the discipline required on the long side look like a cakewalk. Personally, I never leave my computer when I'm short. I can't imagine anyone who's away from a computer for eight hours a day even considering shorting << I don't see the difference in the discipline between longs & shorts. If you don't have the discipline to buy/sell a long then you won't have it for a short. You need the same discipline long or short. Exactly the same. A short is a long turned upside down (G). Speaking of shorts 3 on my sell list for Monday are ltc,lwn,tca with sell stops. The biggest problem I have with making a short sale is the uptick rule & finding shares. I use both Brown & Co. & E*Trade & still sometimes can't find them. Bob - - ------------------------------ Date: Sat, 25 Jul 1998 16:52:23 -0700 (PDT) From: rolatzi Subject: Re: [CANSLIM] Shorting DELL, YHOO & AMZN Long positions are more forgiving than shorts because the over all tendency of the market is up. Down movements tend to be of very short duration as well. I have been burned with AMZN put options. Enuf said. Ciao, rolatzi - ---Robert Bomba <73223.2767@compuserve.com> wrote: > > >> The discipline required on the short side makes the discipline > required on the long side look like a cakewalk. Personally, I never leave > my > computer when I'm short. I can't imagine anyone who's away from a > computer for eight hours a day even considering shorting << > > I don't see the difference in the discipline between longs & shorts. If you > don't have the discipline to buy/sell a long then you won't have it for a > short. You need the same discipline long or short. Exactly the same. A > short is a long turned upside down (G). Speaking of shorts 3 on my sell > list for Monday are ltc,lwn,tca with sell stops. The biggest problem I have > with making a short sale is the uptick rule & finding shares. I use both > Brown & Co. & E*Trade & still sometimes can't find them. > > Bob > > - > > _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Sat, 25 Jul 1998 18:06:47 -0700 From: Tim Fisher Subject: [CANSLIM] OFF-TOPIC: HUMOR- Good Times Spoof OK this is the last one, I promise. Well, maybe. It's hilarious though. It's from the CIAC anti-spam site. Gawd it's hot here. Anyone got a truckload of ice? Good Times Spoof The following spoof of the good times hoax is too well done not to include here. The author of this spoof is unknown, but we will gladly give him credit if he will only contact us. READ THIS: Goodtimes will re-write your hard drive. Not only that, but it will scramble any disks that are even close to your computer. It will recalibrate your refrigerator's coolness setting so all your ice cream goes melty. It will demagnetize the strips on all your credit cards, screw up the tracking on your television and use subspace field harmonics to scratch any CD's you try to play. It will give your ex-girlfriend your new phone number. It will mix Kool-aid into your fishtank. It will drink all your beer and leave its socks out on the coffee table when there's company coming over. It will put a dead kitten in the back pocket of your good suit pants and hide your car keys when you are late for work. Goodtimes will make you fall in love with a penguin. It will give you nightmares about circus midgets. It will pour sugar in your gas tank and shave off both your eyebrows while dating your girlfriend behind your back and billing the dinner and hotel room to your Discover card. It will seduce your grandmother. It does not matter if she is dead, such is the power of Goodtimes, it reaches out beyond the grave to sully those things we hold most dear. It moves your car randomly around parking lots so you can't find it. It will kick your dog. It will leave libidinous messages on your boss's voice mail in your voice! It is insidious and subtle. It is dangerous and terrifying to behold. It is also a rather interesting shade of mauve. Goodtimes will give you Dutch Elm disease. It will leave the toilet seat up. It will make a batch of Methanphedime (sic) in your bathtub and then leave bacon cooking on the stove while it goes out to chase gradeschoolers with your new snowblower. Listen to me. Goodtimes does not exist. It cannot do anything to you. But I can. I am sending this message to everyone in the world. Tell your friends, tell your family. If anyone else sends me another E-mail about this fake Goodtimes Virus, I will turn hating them into a religion. I will do things to them that would make a horsehead in your bed look like Easter Sunday brunch. So there, take that Good Times. Tim Fisher, 1995 President, Pacific Fishery Biologists Ore-ROCK-On Rockhounding Web Site PFB Information mailto:tim@OreRockOn.com WWW http://OreRockOn.com - - ------------------------------ Date: Sat, 25 Jul 1998 21:29:56 -0400 From: Robert Bomba <73223.2767@compuserve.com> Subject: Re: [CANSLIM] Shorting DELL, YHOO & AMZN >> Enuf said. << Not quite. The statement had to do with discipline not bias. Are you more likely to let a loss continue because it's a put verses a call? If you use any less discipline because your long rather then short then I would advise you to stop trading. Bad habits are very expensive to break in the markets. >> Long positions are more forgiving than shorts because the over all tendency of the market is up.>> That really depends on what market your trading & what time frame wouldn't you think? If you buy & hold (stocks) then yes we have an upward bias, if your a trader (day or position) then it's not so clear cut. >>I have been burned with AMZN put options.>> Were you trying to pick the top? I have never been good at picking tops or bottoms. The market is so much more smarter then me. New lows generally will go lower & new highs will go higher generally. Pick your entry/exit point take small losses don't get greedy you can always get back in. Good Luck! Bob - - ------------------------------ Date: Sat, 25 Jul 1998 20:15:44 -0800 From: "Patrick Wahl" Subject: Re: [CANSLIM] Psychology Date sent: Sat, 25 Jul 1998 23:16:48 +0200 To: canslim@lists.xmission.com From: Johan Van Houtven > A better understanding of crowd behaviour and how it influences markets has > helped me a lot. Understanding how the human brain works has helped me to > control my emotions when they need to be controlled. If you haven't yet read "Extraordinary Delusions and the Madness of Crowds", by Charles Mackay, that is a good one on crowd psychology. Actually, just reading the tulip bulb section is pretty much enough to get the picture. Ever since reading that, I tend to see some sort of speculative frenzy every year. The current one, of course, is the internet stock craze. Previously we've had riverboat casino stocks, biotech, wireless phones. - - ------------------------------ End of canslim-digest V2 #340 ***************************** 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.