From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #906 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 Friday, May 26 2000 Volume 02 : Number 906 In this issue: Re: [CANSLIM] I'm now 100% invested! [CANSLIM] Lesson learned (was I'm now 100% invested!) [CANSLIM] Re: canslim-I'm now 100% invested! Re: [CANSLIM] Re: canslim-I'm now 100% invested! Re: [CANSLIM] I'm now 100% invested! [CANSLIM] Cutting losses Re: [CANSLIM] what online broker Re: [CANSLIM] what online broker Re: [CANSLIM] what online broker Re: [CANSLIM] what online broker Re: [CANSLIM] Re: canslim-I'm now 100% invested! ---------------------------------------------------------------------- Date: Thu, 25 May 2000 14:18:58 -0700 (PDT) From: Pritish Shah Subject: Re: [CANSLIM] I'm now 100% invested! I concur. I had CREE which I bought on breakout but then I did not sell it when it went through 8%, then 16%, then 50dma and now I am regretting it. I am actually thinking of selling it off but it has bounced twice from the 200dma. I had bought it for long term investment (seriously). It had looked better than JDSU because of its earnings growth. However, I screwed up. Now I am suffering because of that. Regards, Shah 408-525-4263 On Thu, 25 May 2000 han.26@osu.edu wrote: > OK, now that I have your attention, the real reason that I'm fully invested is > because I never sold when I should have, and I feel that we're closer to the end > [point-wise anyway if not timewise] of the bear [than to the beginning]. > > I'm glad I've taken a beating this early in my investment "career" so that I will > actually FOLLOW WON's advice to sell when M and ONLY M is bad. My two stocks were > both excellent CANSLI...just that I didn't pay enough attention to M. It's not > like WON doesn't stress it enough in HTMMIS..it's just that I apparently must have > wanted to really learn [the hard way] and pay some more [life] tuition. > > Hoping for imminent M capitulation, > > -Jim the-street-begger > > > - > > - - ------------------------------ Date: Thu, 25 May 2000 20:11:11 -0400 From: "Hugh Fader" Subject: [CANSLIM] Lesson learned (was I'm now 100% invested!) I had a similar lesson last fall. I held TAN which at one point was 30% above my purchase price. The day they warned they would not meet December sales forecasts, the stock plunged 20% below my buy point. I decided to hold to see what would happen. It was obviously oversold, I thought, and bargain hunters would boost the price back up at least to my break even point. Here is the lesson: If you fail to follow your trading rules and operate outside of the bounds where they work, you have no way to know when to buy or sell. I held on. The stock moved up and down and then down further and further. I didn't know what to do. Finally, I sold at a 40% loss just so I could stop agonizing over this stock. Since starting CANSLIM trading almost two years ago, this was the first and last time I did not cut my losses. - - Hugh - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of han.26@osu.edu Sent: Thursday, May 25, 2000 7:23 PM To: canslim@lists.xmission.com Subject: [CANSLIM] I'm now 100% invested! OK, now that I have your attention, the real reason that I'm fully invested is because I never sold when I should have, and I feel that we're closer to the end [point-wise anyway if not timewise] of the bear [than to the beginning]. I'm glad I've taken a beating this early in my investment "career" so that I will actually FOLLOW WON's advice to sell when M and ONLY M is bad. My two stocks were both excellent CANSLI...just that I didn't pay enough attention to M. It's not like WON doesn't stress it enough in HTMMIS..it's just that I apparently must have wanted to really learn [the hard way] and pay some more [life] tuition. Hoping for imminent M capitulation, - -Jim the-street-begger - - - - ------------------------------ Date: Thu, 25 May 2000 20:58:18 -0500 From: Richard Turner Subject: [CANSLIM] Re: canslim-I'm now 100% invested! Jim, Congratulations on your initiation but if you're a slow learner like myself you'll do about five more times before you CUT LOSSES,CUT LOSSES,CUT LOSSES. - - ------------------------------ Date: Thu, 25 May 2000 18:01:50 -0400 From: "lynn williams" Subject: Re: [CANSLIM] Re: canslim-I'm now 100% invested! Well all I can say is I agree but maybe way too late..have too many losers. My question is: oftentimes I can buy a stock which is a super strong canslim stock and actually lose 7-8% that very day! Then what do you do??? Lynn - ----- Original Message ----- From: "Richard Turner" To: Sent: Thursday, May 25, 2000 9:58 PM Subject: [CANSLIM] Re: canslim-I'm now 100% invested! > Jim, Congratulations on your initiation but if you're a slow learner > like myself you'll do about five more times before you CUT LOSSES,CUT > LOSSES,CUT LOSSES. > > > - > - - ------------------------------ Date: Thu, 25 May 2000 19:23:01 -0600 From: Earl Setser Subject: Re: [CANSLIM] I'm now 100% invested! Well, if nothing else, this is making me feel a little better. I watched as my YTD gains reached 70% or more, and then ALL of my holdings just dropped like anchors. In the end, I bailed out of this and that, and ended up with about 30% of my gains intact. I really think that I was VERY slow on the draw and let a lot get away that I shouldn't have, but I also chalk it up to an expensive lesson. A short while later, the NASDAQ apparently turned, and I jumped in with both feet. I realized that buying 8 & 9 day bases was suspect at best, but decided to give it a whirl. I ended up stopped out of everything I bought, but I did escape better, and stand about 20% up YTD. I tiptoed in a while later on a supposed FT Day. The volume was up, but suspect, and the IBD was VERY hesitant, but I made a couple of purchases (33% invested) anyway. I caught a couple of good stocks, they broke higher and looked good. It took about a week for them to come crashing down. At this point, I was unwilling to risk much capital, and I sold both stocks at near-even for an insignificant gain. This was better. I went in with both eyes open and was VERY cautious. I was unwilling to risk my capital very much, and even if I had lost 10% on both, it was only 3% overall. I think this is correct way to go at any FT day that is somewhat suspect. Look for leadership, get in only in small increments, and be ready to go in deeper when things look good. I feel the same about yesterday's day 1 of a possible rally. I'll be watching for an FT day starting Tuesday. Given a convincing day, I'll look for Industry Groups and stocks ready to break out, and only tiptoe in if things look good. After today's action, I'm very doubtful we have seen a bottom, but my OPINION isn't what matters. We just need to watch the market and listen to what it tells us. So far, all I hear is "Not Yet!". Signed, "another antsy investor, but 100% cash in my CANSLIM acct" (and wishing my Mutual Fund accounts were CANSLIM instead!!!) At 04:22 PM 5/25/00 -0700, you wrote: >OK, now that I have your attention, the real reason that I'm fully invested is >because I never sold when I should have, and I feel that we're closer to the end >[point-wise anyway if not timewise] of the bear [than to the beginning]. > >I'm glad I've taken a beating this early in my investment "career" so that I will >actually FOLLOW WON's advice to sell when M and ONLY M is bad. My two stocks were >both excellent CANSLI...just that I didn't pay enough attention to M. It's not >like WON doesn't stress it enough in HTMMIS..it's just that I apparently must have >wanted to really learn [the hard way] and pay some more [life] tuition. > >Hoping for imminent M capitulation, > >-Jim the-street-begger > > >- > > > - - ------------------------------ Date: Fri, 26 May 2000 05:57:02 -0700 (PDT) From: Dave Cameron Subject: [CANSLIM] Cutting losses In interviews, O'Neil has asserted that the TOUGHEST thing for individual investors to do is cut their losses. I can assure those of you who are having problems with it, that it remains my biggest problem. There have been several occasions where I bought a stock as it broke out of a strong base only to watch the market go down the next day and take mine with it. On some of those occasions, I stupidly said to myself - oh, my stock only went down because the market blipped down today. While that was probably true - the stock almost never went back up to my buy point. Another poster mentioned the tendency to buy back in on short bases - and then get stopped out at a loss shortly thereafter. IMHO, its not really a good idea to buy anything now because the market action still isn't right, and there aren't many CANSLIM looking charts. I've tried to buy on short bases as well, and usually ended up giving back previous gains in the process. We're all human. We want to believe we made the right decision. Buying a stock that looks like a CANSLIM stock that gives us a quick loss is not a mistake. But failing to sell it is. Dave Cameron dfcameron@yahoo.com __________________________________________________ Do You Yahoo!? Kick off your party with Yahoo! Invites. http://invites.yahoo.com/ - - ------------------------------ Date: Fri, 26 May 2000 16:10:19 EDT From: BIKEAR@aol.com Subject: Re: [CANSLIM] what online broker I'm new to the list and was wondering what on-line broker do some of you us...I have the American X and like it but learning more and more everyday...I relized if I am a intermed or short seller using the canslim that I have got to have a stop order on the nas...they have it on the other but not the Nas....I have the limit order do you feel that it is ok llllllhope to hear...jan - - ------------------------------ Date: Fri, 26 May 2000 14:32:55 -0600 From: Earl Setser Subject: Re: [CANSLIM] what online broker I use Fidelity and previously Schwab. I originally got into Fidelity for their mutual funds, but I changed it to a Brokerage account later on. They do provide stops on the NASDAQ and their costs are pretty competitive once you get a good balance there. I traded enough last year to get some additional discounts. I pay $14.95 per on-line trade with no charge for stops or limits. I have been very happy with their service and the rapid response on trades. At 04:10 PM 5/26/00 EDT, you wrote: >I'm new to the list and was wondering what on-line broker do some of you >us...I have the American X and like it but learning more and more >everyday...I relized if I am a intermed or short seller using the canslim >that I have got to have a stop order on the nas...they have it on the other >but not the Nas....I have the limit order do you feel that it is ok >llllllhope to hear...jan > >- > > > - - ------------------------------ Date: Fri, 26 May 2000 17:09:15 -0400 From: drd@2020.com (Dr. DiGirolamo) Subject: Re: [CANSLIM] what online broker At 04:10 PM 05/26/2000 , you wrote: >I'm new to the list and was wondering what on-line broker do some of you >us...I have the American X and like it but learning more and more >everyday...I relized if I am a intermed or short seller using the canslim >that I have got to have a stop order on the nas...they have it on the other >but not the Nas....I have the limit order do you feel that it is ok >llllllhope to hear...jan Hi Jan, I've used Ameritrade and E*Trade for a couple of years but have recently decided to switch. I opened an account with DLJdirect. Though they are a bit more expensive, they provide an awful lot of benefits over the other two. While E*Trade advertises access to IPO's, you are lucky when you get 100 shares of any stock. Of course, IPO's are of little interest in this particular market now, but their research tools and data bank are wonderful. You do need to maintain a balance in excess of $100k to get a lot of freebies, and those fortunate enough to keep in excess of $1Mill get still more. Check them out.. you may feel that the difference in price is offset by their added services (and execution and reliability). Regards, Mike - - ------------------------------ Date: Fri, 26 May 2000 14:19:10 -0700 From: Eric Shen Subject: Re: [CANSLIM] what online broker BIKEAR@aol.com wrote: > > I'm new to the list and was wondering what on-line broker do some of you > us...I have the American X and like it but learning more and more > everyday...I relized if I am a intermed or short seller using the canslim > that I have got to have a stop order on the nas...they have it on the other > but not the Nas....I have the limit order do you feel that it is ok > llllllhope to hear...jan > > - I have a Schwab account and am quite happy with them. Their commissions on the web are $24.95 and starting this fall, they will be charging some sort of account maint. fee if the balance goes below $10,000. I also have a TD Waterhouse account. I'm not that impressed with their web site. Too slow. I've been seeing e-trade commercials where they are giving free DSL access by signing up to their Power E-trade account. That might be worth looking into. Eric - -- - -------------------------------------------------------------- Eric Shen MS LOC3-8 / / / Level One Communications email: eshen@level1.com | | |_/ an Intel company Tel: (916) 855 5177 | |___/ 9750 Goethe Road ext: 4497 |_____/ Sacramento, CA 95827 - - ------------------------------ Date: Fri, 26 May 2000 18:55:20 -0700 From: "Dave" Subject: Re: [CANSLIM] Re: canslim-I'm now 100% invested! Lynn, Your question is quite easy to answer.....you sell out at a loss no questions asked. Of course, this "sell at a 7% loss" stuff is always hard to handle since the buy point can be very subjective. However, the process is quite simple. 1) The market follows through 2) There are MANY sound bases* forming in aggressive growth (earning or revenue) stocks. 3) Buy stocks breaking out (on 50-100% increase in 50-day ADV) from either the top part of the handle or the most obvious resistance point on the chart. 4) Cut your losses on any stock that goes against you 4-10% depending on your risk profile. 5) hold winning stocks until their price/volume action turns negative or a climax run occurs. 5) If your "sold at a loss" stock breaks out again on expanding volume you buy it back just like you never heard of the thing in your life! * Sound Bases in my book are sideways movement in stocks (that have been in previous uptrends) that last AT LEAST 4 weeks but preferable 6-8 weeks. The depth of the base must be viewed in relation to the most recent uptrend. Just remember, if a stock goes against you by 4-10%(my parameters) you sell out no questions asked regardless of the amount of time you have own it. A 10% loss is a 10% loss in 2 minutes or 2 weeks. If you read the Market Wizards I & II, you will see an obvious theme....every trader says there success comes from CUTTING LOSSES SHORT!!!. If you remember no other rule remember to TAKE YOUR LOSS! One last thing....please remember as your loss increases the required % move needed to get back to even grows exponentially. Do the numbers in ten % increments to see how hard it is to recover from a large loss. BTW, I am speaking from experience....I have made EVERY investing/trading mistake under the sun! Hope this helped, DSquires - ----- Original Message ----- From: "lynn williams" To: Sent: Thursday, May 25, 2000 3:01 PM Subject: Re: [CANSLIM] Re: canslim-I'm now 100% invested! > Well all I can say is I agree but maybe way too late..have too many losers. > My question is: oftentimes I can buy a stock which is a super strong canslim > stock and actually lose 7-8% that very day! Then what do you do??? > Lynn > ----- Original Message ----- > From: "Richard Turner" > To: > Sent: Thursday, May 25, 2000 9:58 PM > Subject: [CANSLIM] Re: canslim-I'm now 100% invested! > > > > Jim, Congratulations on your initiation but if you're a slow learner > > like myself you'll do about five more times before you CUT LOSSES,CUT > > LOSSES,CUT LOSSES. > > > > > > - > > > > > - > - - ------------------------------ End of canslim-digest V2 #906 ***************************** 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.