From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #3428 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, July 16 2003 Volume 02 : Number 3428 In this issue: Re: [CANSLIM] Market Trend Charts Re: RE: [CANSLIM] Market Wizards [CANSLIM] Slightly Off Topic - Mutual Fund Newsletters Re: RE: [CANSLIM] Market Wizards RE: RE: [CANSLIM] Market Wizards RE: RE: [CANSLIM] Market Wizards Re: [CANSLIM] IRS rules for traders (was dumb question...) ---------------------------------------------------------------------- Date: Wed, 16 Jul 2003 13:44:23 -0700 (PDT) From: Tomas Subject: Re: [CANSLIM] Market Trend Charts Gene, Dave, Jonathan, Thanks for clarifying it. I misread the email. Thanks, tomas - --- Gene Ricci wrote: > Tomas, the 2% is RISK, not the amount of the stock > purchase. > He's going to use 1/12 of his portfolio for each > purchase. If I > get time later this evening I'll send you an > example. > Let me add that CS is good for selecting stocks to > buy . <- period > Not known, in any of the circles that I frequent, > for money management. > Gene > ----- Original Message ----- > From: Tomas > To: canslim@lists.xmission.com > Sent: Wednesday, July 16, 2003 12:56 PM > Subject: RE: [CANSLIM] Market Trend Charts > > > One comment on the 2% comment. The whole idea > using > CS is to win big when you are right, as stated by > WON. > So, with only an investment of 2%, how do you win > BIG > even if the one stock went up 100%? Of course, > you > can pyramid up. But if you do that then that > stock/investment will be more then 2% of your > portfolio. I understand that capital preservation > is > very important, but I 2% is a bit much or too > little. > > You have to put a lot of eggs in one basket to win > big, right? That 2% rule sounds like > diworsification. > > just my $.02 > tomas > > --- Pritish Shah wrote: > > Dave, > > > > You asked a good question on how to make money > in > > the range bound market. There in lies the answer > > that I hope to use. If the stock market goes to > the > > bottom of the range, buy. If it goes to the top, > > lock in your profits with a trailing stop so if > a > > stock goes higher, we would still be in. > > > > I am hoping to purchase breakouts in the top 40 > or > > 50 industries only and want to do legwork before > > hand so I only have to make a "yes" or a "no" > > decision when an alert occurs. > > > > I am still learning and the idea of "8% loss in > a > > stock should not be greater than 2% of total > > portfolio" is a great. So at minimum, I should > not > > invest more than 1/12th of my total portfolio in > any > > individual stock. > > > > Pritish > > > > > > >>> canslimdave2003@yahoo.com 07/15/03 23:11 PM > >>> > > Pritish -- > > > > I agree with you exactly. IMHO it will take 14 > > years before the markets really break to a new > high. > > Well, 11 counting the three we've just been > > through. In the 1968-82 period, the 1000 point > > barrier was called "The Graveyard in the Sky" > > because of all the rallies that failed at that > > point. > > > > I'm very interested in learning how to apply > CANSLIM > > in such a range bound market. But I also want > to > > trade with the idea in mind that I may well be > wrong > > about my ideas on what the market will do. > > Therefore, I'm looking for buy/sell rules that > work > > despite my opinions. For example, SELL if a > stock > > breaks its 50 day moving average. > > > > On thing I have come up with is the idea of > getting > > into the market one profitable trade at a time. > > Last year, I became convinced that a bull market > was > > beginning and bought 6 different stocks on > > breakouts, convinced that surely 1-2 would > remain > > above their 7-8% stop loss and therefore bail me > > out. Instead, the market turned sharply against > me > > and I was quickly down 8+ % (because I bought > some > > on margin). > > > > This year, when the market started looking good > to > > me, I only put on one trade. Once that proved > > profitable, I raised my stop loss level to break > > even and put on a second trade. So, I've scaled > my > > way into the market. I am hoping that approach > will > > keep me from taking too big a hit if I am wrong > > about market direction in the future. > > > > Also, I am being vigilant about limiting my > > purchases so that if my 7% stop is hit, the loss > is > > less than 1.5% of my total portfolio. Over and > over > > in the Market Wizards books professional traders > > talk about keeping the risk on any individual > trade > > to less than 2%. I don't think WON stresses > this > > rule enough. > > > > Thanks for your post! > > > > Dave > > > > Pritish Shah wrote: > > Hi Kelly, > > > > I have been studying where I am making mistakes. > A > > lot of my failures were bought when Nasdaq was > > touching the upper bollinger bands. Checkout the > > following chart. You will notice that Nasdaq is > > currently toying with the upper bollinger bands > and > > has been bouncing from the 20dma. So the best > time > > to buy would be when Nasdaq again touches 20dma > and > > there are a flurry of breakouts. > > > > > > http://finance.yahoo.com/q?s=^IXIC&d=c&k=c3&a=vm,m26-12-9,ss,fs&p=m20,b&t=6m&l=on&z=l&q=b > > > > > > A lot of people have shown me charts that > basically > > predict that the market will churn for the next > few > > years and I believe that would be the trend. > This is > > where CANSLIM can do much better than any other > > method of investing. > > > > Take a look at the following chart. You will > notice > > that from 1937 to 1950 (13 yrs), the market was > > pretty much flat. From 1965 to 1983 also the > market > > was flat. There was also a flat period before > 1930 > > but that is not shown on the graph. > > > > > > http://finance.yahoo.com/q?s=^DJI&d=c&k=c3&p=&t=my&l=on&z=l&q=l > > > > > > Basically after every major rise, the market > pauses > > for several years and then tries again. This has > > happened 3 times on DJI. Nasdaq is currently > > behaving exactly like DJI from 1930 to 1933. If > it > > continues to behave like DJI, for next year and > > half, we are not going to go anywhere and then > there > > will be a major move upwards. > > > > I am open for discussions but not flames please. > > > > Thanks, > > Pritish > > > > > > >>> kelly.short@fw.us.neoris.com 07/15/03 > 02:40PM > === message truncated === __________________________________ Do you Yahoo!? SBC Yahoo! DSL - Now only $29.95 per month! http://sbc.yahoo.com - - - -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, 16 Jul 2003 16:54:15 -0400 From: France Subject: Re: RE: [CANSLIM] Market Wizards This is a multi-part message in MIME format. - ------=____1058388855420_I,hGr+p-YT Content-Type: text/plain; charset=iso-8859-1 Content-Transfer-Encoding: 7bit Kelly, Regarding the Market Wizards books, I have read all 3 and I consider them my bibles. They are very informative in terms of experience and most importantly from a trader's perspective, not some salesman's (read: broker) or analyst's. I highly recommend them to everybody. The traders' background differ (stocks, commodities, currencies), but they all exhibit similar winning characteristics. That being said, once you're out there doing your thing, the challenge is to adapt what you've learned to your situation, namely, most of us do not trade millions! Cheers, France From: "Kelly Short" Date: 2003/07/16 Wed PM 12:09:17 EST To: Subject: RE: [CANSLIM] Market Trend Charts David, What is the "Market Wizards" you refer to? Is this a book and if so, could you send me a link with more information on it. Has anyone else in the group read this book that could offer opinions on its value? Kelly - -----Original Message----- From: Dave Stem [mailto:canslimdave2003@yahoo.com] Sent: Wednesday, July 16, 2003 2:18 AM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] Market Trend Charts Pritish... A good idea is to focus almost solely on risk and let the profits take care of themselves... which is what the 2% or less risk rule allows you to do. In his book, WON talks about how if you are alert, you will actually be out of many stocks before the 7-8% loss because you will be able to tell when a stock is not acting right. The 7-8% loss is the maximum. It's not a blind rule to follow. David Ryan, in Market Wizards, said he would sell half of any position that fell back to the pivot point. I highly recommend the interview with him. He talks very specifically about how to trade using CANSLIM. And he won some sort of investing championship 3 years in a row... which is not bad. Returns well over 100 percent each year. Personally, I think if you just buy breakouts and blindly use a 7-8% stop over the next few years, there is a good chance your portfolio will be eaten away... particularly if you are so naive as I was last year... to buy many stocks simultaneously without waiting for profits to show up first. Dave Pritish Shah wrote: I am still learning and the idea of "8% loss in a stock should not be greater than 2% of total portfolio" is a great. So at minimum, I should not invest more than 1/12th of my total portfolio in any individual stock. _____ Do you Yahoo!? SBC Yahoo! DSL - Now only $29.95 per month! - ------=____1058388855420_I,hGr+p-YT Content-Type: text/html; name="replyAll" Content-Disposition: inline; filename="replyAll"
David,
 
What is the "Market Wizards" you refer to? Is this a book and if so, could you send me a link with more information on it. Has anyone else in the group read this book that could offer opinions on its value?
 
Kelly
-----Original Message-----
From: Dave Stem [mailto:canslimdave2003@yahoo.com]
Sent: Wednesday, July 16, 2003 2:18 AM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] Market Trend Charts

Pritish...
 
A good idea is to focus almost solely on risk and let the profits take care of themselves... which is what the 2% or less risk rule allows  you to do.  In his book, WON talks about how if you are alert, you will actually be out of many stocks before the 7-8% loss because you will be able to tell when a stock is not acting right.  The 7-8% loss is the maximum.  It's not a blind rule to follow. 
 
David Ryan, in Market Wizards, said he would sell half of any position that fell back to the pivot point.  I highly recommend the interview with him.  He talks very specifically about how to trade using CANSLIM.  And he won some sort of investing championship 3 years in a row... which is not bad.  Returns well over 100 percent each year.
 
Personally, I think if you just buy breakouts and blindly use a 7-8% stop over the next few years, there is a good chance your portfolio will be eaten away... particularly if you are so naive as I was last year... to buy many stocks simultaneously without waiting for profits to show up first.
 
Dave


Pritish Shah <pshah@lason.com> wrote:

I am still learning and the idea of "8% loss in a stock should not be greater than 2% of total portfolio" is a great. So at minimum, I should not invest more than 1/12th of my total portfolio in any individual stock.

Do you Yahoo!?
SBC Yahoo! DSL - Now only $29.95 per month!
- ------=____1058388855420_I,hGr+p-YT-- - - - -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, 16 Jul 2003 18:47:28 -0400 From: "John P" Subject: [CANSLIM] Slightly Off Topic - Mutual Fund Newsletters This is a multi-part message in MIME format. - ------=_NextPart_000_011E_01C34BCA.B50A1640 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Forgive me for getting off topic but I value the opinion of this group. = I am not confortable enough with CANSLIM to use it for all my = investments so I keep some money in Mutual Funds. Does any use/recommend = a good newsletter for Fidelity Funds, preferably something with a little = market timing. Thanks John P. - ------=_NextPart_000_011E_01C34BCA.B50A1640 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Forgive me for getting off topic but I = value the=20 opinion of this group. I am not confortable enough with CANSLIM to use = it for=20 all my investments so I keep some money in Mutual Funds. Does any = use/recommend=20 a good newsletter for Fidelity Funds, preferably something with a little = market=20 timing.
 
Thanks
 John = P.
- ------=_NextPart_000_011E_01C34BCA.B50A1640-- - - - -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, 16 Jul 2003 13:00:33 -1000 From: "Roger" Subject: Re: RE: [CANSLIM] Market Wizards This is a multi-part message in MIME format. - ------=_NextPart_000_001F_01C34B9A.3E428720 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable I missed something about the 3 books I got the Market w\Wizard by David = Ryan (I believe) but dont know what the titles of the other 2 are. = Would someone help? ----- Original Message -----=20 From: David Taggart=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 16, 2003 10:02 AM Subject: RE: RE: [CANSLIM] Market Wizards All three Market Wizard books are excellent I dont know of a good = trader that doesnt reccomend them. You can get all 3 in paperback for = like 15 a book. =20 -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of France Sent: Wednesday, July 16, 2003 1:40 PM To: canslim@lists.xmission.com; canslim@lists.xmission.com Subject: Re: RE: [CANSLIM] Market Wizards David, What is the "Market Wizards" you refer to? Is this a book and if so, = could you send me a link with more information on it. Has anyone else in = the group read this book that could offer opinions on its value? Kelly -----Original Message----- From: Dave Stem [mailto:canslimdave2003@yahoo.com] Sent: Wednesday, July 16, 2003 2:18 AM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] Market Trend Charts Pritish...=20 A good idea is to focus almost solely on risk and let the profits = take care of themselves... which is what the 2% or less risk rule allows = you to do. In his book, WON talks about how if you are alert, you will = actually be out of many stocks before the 7-8% loss because you will be = able to tell when a stock is not acting right. The 7-8% loss is the = maximum. It's not a blind rule to follow. =20 David Ryan, in Market Wizards, said he would sell half of any = position that fell back to the pivot point. I highly recommend the = interview with him. He talks very specifically about how to trade using = CANSLIM. And he won some sort of investing championship 3 years in a = row... which is not bad. Returns well over 100 percent each year. Personally, I think if you just buy breakouts and blindly use a = 7-8% stop over the next few years, there is a good chance your portfolio = will be eaten away... particularly if you are so naive as I was last = year... to buy many stocks simultaneously without waiting for profits to = show up first. Dave Pritish Shah wrote:=20 I am still learning and the idea of "8% loss in a stock should = not be greater than 2% of total portfolio" is a great. So at minimum, I = should not invest more than 1/12th of my total portfolio in any = individual stock. - -------------------------------------------------------------------------= - - Do you Yahoo!? SBC Yahoo! DSL - Now only $29.95 per month! - ------=_NextPart_000_001F_01C34B9A.3E428720 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
I = missed something=20 about the 3 books  I got the Market w\Wizard by David Ryan (I = believe)=20 but  dont know what the titles of the other 2 are.  Would = someone=20 help?
----- Original Message -----
From:=20 David Taggart
Sent: Wednesday, July 16, 2003 = 10:02=20 AM
Subject: RE: RE: [CANSLIM] = Market=20 Wizards

All=20 three Market Wizard books are excellent I dont know of a good trader = that=20 doesnt reccomend them.  You can get all 3 in paperback for like = 15 a=20 book. 
-----Original Message-----
From: owner-canslim@lists.xmis= sion.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of=20 France
Sent: Wednesday, July 16, 2003 1:40 = PM
To: canslim@lists.xmission.com= ;=20 canslim@lists.xmission.com
Subject: Re: RE: [CANSLIM] = Market=20 Wizards

David,
 
What is the "Market Wizards" you refer to? Is this a book = and if so,=20 could you send me a link with more information on it. Has anyone = else in the=20 group read this book that could offer opinions on its=20 value?
 
Kelly
-----Original Message-----
From: Dave Stem=20 [mailto:canslimdave2003@yahoo.com]
Sent: Wednesday, July = 16,=20 2003 2:18 AM
To: = canslim@lists.xmission.com
Subject:=20 RE: [CANSLIM] Market Trend Charts

Pritish...
 
A good idea is to focus almost solely on risk and let the = profits=20 take care of themselves... which is what the 2% or less risk rule=20 allows  you to do.  In his book, WON talks about how if = you are=20 alert, you will actually be out of many stocks before the 7-8% = loss=20 because you will be able to tell when a stock is not acting = right. =20 The 7-8% loss is the maximum.  It's not a blind rule to = follow. =20
 
David Ryan, in Market Wizards, said he would sell half of any = position that fell back to the pivot point.  I highly = recommend the=20 interview with him.  He talks very specifically about how to = trade=20 using CANSLIM.  And he won some sort of investing = championship 3=20 years in a row... which is not bad.  Returns well over 100 = percent=20 each year.
 
Personally, I think if you just buy breakouts and blindly use = a 7-8%=20 stop over the next few years, there is a good chance your = portfolio will=20 be eaten away... particularly if you are so naive as I was last = year... to=20 buy many stocks simultaneously without waiting for profits to show = up=20 first.
 
Dave


Pritish Shah <pshah@lason.com> = wrote:=20
I=20 am still learning and the idea of "8% loss in a stock should not = be=20 greater than 2% of total portfolio" is a great. So at minimum, I = should=20 not invest more than 1/12th of my total portfolio in any = individual=20 stock.

Do you Yahoo!?
SBC=20 Yahoo! DSL - Now only $29.95 per=20 month!
- ------=_NextPart_000_001F_01C34B9A.3E428720-- - - - -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, 16 Jul 2003 18:17:33 -0500 From: "Katherine Malm" Subject: RE: RE: [CANSLIM] Market Wizards This is a multi-part message in MIME format. - ------=_NextPart_000_0083_01C34BC6.86D74AD0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: 7bit Market Wizards books (Jack Schwager): http://www.amazon.com/exec/obidos/ASIN/0887306101/qid=1058397229/sr=2-2/ref=sr_2 _2/103-9921310-1178225 http://www.amazon.com/exec/obidos/ASIN/0887306675/qid=1058397229/sr=2-3/ref=sr_2 _3/103-9921310-1178225 http://www.amazon.com/exec/obidos/ASIN/0066620597/qid=1058397229/sr=2-1/ref=sr_2 _1/103-9921310-1178225 Also mentioned today in the discussion on money management (Van Tharp): http://www.amazon.com/exec/obidos/ASIN/0070647623/qid=1058397390/sr=2-1/ref=sr_2 _1/103-9921310-1178225 -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Roger Sent: Wednesday, July 16, 2003 5:01 PM To: canslim@lists.xmission.com Subject: Re: RE: [CANSLIM] Market Wizards I missed something about the 3 books I got the Market w\Wizard by David Ryan (I believe) but dont know what the titles of the other 2 are. Would someone help? ----- Original Message ----- From: David Taggart To: canslim@lists.xmission.com Sent: Wednesday, July 16, 2003 10:02 AM Subject: RE: RE: [CANSLIM] Market Wizards All three Market Wizard books are excellent I dont know of a good trader that doesnt reccomend them. You can get all 3 in paperback for like 15 a book. -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of France Sent: Wednesday, July 16, 2003 1:40 PM To: canslim@lists.xmission.com; canslim@lists.xmission.com Subject: Re: RE: [CANSLIM] Market Wizards David, What is the "Market Wizards" you refer to? Is this a book and if so, could you send me a link with more information on it. Has anyone else in the group read this book that could offer opinions on its value? Kelly -----Original Message----- From: Dave Stem [mailto:canslimdave2003@yahoo.com] Sent: Wednesday, July 16, 2003 2:18 AM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] Market Trend Charts Pritish... A good idea is to focus almost solely on risk and let the profits take care of themselves... which is what the 2% or less risk rule allows you to do. In his book, WON talks about how if you are alert, you will actually be out of many stocks before the 7-8% loss because you will be able to tell when a stock is not acting right. The 7-8% loss is the maximum. It's not a blind rule to follow. David Ryan, in Market Wizards, said he would sell half of any position that fell back to the pivot point. I highly recommend the interview with him. He talks very specifically about how to trade using CANSLIM. And he won some sort of investing championship 3 years in a row... which is not bad. Returns well over 100 percent each year. Personally, I think if you just buy breakouts and blindly use a 7-8% stop over the next few years, there is a good chance your portfolio will be eaten away... particularly if you are so naive as I was last year... to buy many stocks simultaneously without waiting for profits to show up first. Dave Pritish Shah wrote: I am still learning and the idea of "8% loss in a stock should not be greater than 2% of total portfolio" is a great. So at minimum, I should not invest more than 1/12th of my total portfolio in any individual stock. - ------------------------------------------------------------------------ Do you Yahoo!? SBC Yahoo! DSL - Now only $29.95 per month! - ------=_NextPart_000_0083_01C34BC6.86D74AD0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
 
Market Wizards books (Jack=20 Schwager):
 
http://www.amazon.com/exec/o= bidos/ASIN/0887306101/qid=3D1058397229/sr=3D2-2/ref=3Dsr_2_2/103-9921310-= 1178225
 
http://www.amazon.com/exec/o= bidos/ASIN/0887306675/qid=3D1058397229/sr=3D2-3/ref=3Dsr_2_3/103-9921310-= 1178225
 
http://www.amazon.com/exec/o= bidos/ASIN/0066620597/qid=3D1058397229/sr=3D2-1/ref=3Dsr_2_1/103-9921310-= 1178225
 
Also mentioned today in the = discussion on=20 money management (Van Tharp):
 
http://www.amazon.com/exec/o= bidos/ASIN/0070647623/qid=3D1058397390/sr=3D2-1/ref=3Dsr_2_1/103-9921310-= 1178225
 
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of=20 Roger
Sent: Wednesday, July 16, 2003 5:01 = PM
To:=20 canslim@lists.xmission.com
Subject: Re: RE: [CANSLIM] Market = Wizards

I = missed=20 something about the 3 books  I got the Market w\Wizard by David = Ryan (I=20 believe) but  dont know what the titles of the other 2 are.  = Would=20 someone help?
----- Original Message -----
From:=20 David Taggart
Sent: Wednesday, July 16, = 2003 10:02=20 AM
Subject: RE: RE: [CANSLIM] = Market=20 Wizards

All three Market Wizard books are excellent I dont know of = a good=20 trader that doesnt reccomend them.  You can get all 3 in = paperback for=20 like 15 a book. 
-----Original Message-----
From: owner-canslim@lists.xmis= sion.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of=20 France
Sent: Wednesday, July 16, 2003 1:40 = PM
To:=20 canslim@lists.xmission.com= ;=20 canslim@lists.xmission.com
Subject: Re: RE: [CANSLIM] = Market=20 Wizards

David,
 
What is the "Market Wizards" you refer to? Is this a book = and if=20 so, could you send me a link with more information on it. Has = anyone else=20 in the group read this book that could offer opinions on its=20 value?
 
Kelly
-----Original Message-----
From: Dave Stem=20 [mailto:canslimdave2003@yahoo.com]
Sent: Wednesday, = July 16,=20 2003 2:18 AM
To: = canslim@lists.xmission.com
Subject:=20 RE: [CANSLIM] Market Trend Charts

Pritish...
 
A good idea is to focus almost solely on risk and let the = profits=20 take care of themselves... which is what the 2% or less risk = rule=20 allows  you to do.  In his book, WON talks about how = if you=20 are alert, you will actually be out of many stocks before the = 7-8% loss=20 because you will be able to tell when a stock is not acting = right. =20 The 7-8% loss is the maximum.  It's not a blind rule to=20 follow. 
 
David Ryan, in Market Wizards, said he would sell half of = any=20 position that fell back to the pivot point.  I highly = recommend the=20 interview with him.  He talks very specifically about how = to trade=20 using CANSLIM.  And he won some sort of investing = championship 3=20 years in a row... which is not bad.  Returns well over 100 = percent=20 each year.
 
Personally, I think if you just buy breakouts and blindly = use a=20 7-8% stop over the next few years, there is a good chance your = portfolio=20 will be eaten away... particularly if you are so naive as I was = last=20 year... to buy many stocks simultaneously without waiting for = profits to=20 show up first.
 
Dave


Pritish Shah <pshah@lason.com> = wrote:=20
I=20 am still learning and the idea of "8% loss in a stock should = not be=20 greater than 2% of total portfolio" is a great. So at minimum, = I=20 should not invest more than 1/12th of my total portfolio in = any=20 individual stock.

Do you Yahoo!?
SBC=20 Yahoo! DSL - Now only $29.95 per=20 = month!
- ------=_NextPart_000_0083_01C34BC6.86D74AD0-- - - - -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, 16 Jul 2003 18:12:32 -0600 From: "Patrick Wahl" Subject: RE: RE: [CANSLIM] Market Wizards On 16 Jul 2003 at 14:02, David Taggart wrote: > All three Market Wizard books are excellent I dont know of a good trader > that doesnt reccomend them. You can get all 3 in paperback for like 15 a > book. (this is a repeat of what I said a couple years ago, but probably a new person or two on the list since then ) I liked the first two, by the third one, Stock Market Wizards, I found it was getting very familiar and I didn't get anything out of it. People talk primarily about general investing rules - cut your losses, don't take a big loss, the stuff that was discussed in the first two. One of the guys he interviewed, if I remember correctly, uses a few patterns, but not only would this stiff not describe the patterns, he would not give out the names he has for the patterns for fear of misleading people. - - - -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, 16 Jul 2003 16:02:22 -0400 From: "Charles & Lois Layne" Subject: Re: [CANSLIM] IRS rules for traders (was dumb question...) This is a multi-part message in MIME format. - ------=_NextPart_000_004F_01C34BB3.A4833FC0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable ----- Original Message -----=20 From: Gene Ricci=20 Chuck, thanks for the added information. Gene You're welcome! Chuck Layne - ------=_NextPart_000_004F_01C34BB3.A4833FC0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
 
----- Original Message -----
From:=20 Gene = Ricci

Chuck, thanks for the added=20 information.
 
Gene
 
 
You're welcome!
 
 
Chuck Layne
 
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