CANSLIM & Momentum Investing 01 (May 08 - Jul 09)

[memphisb]

can't help but notice O Neil practise something something is dreadly diff from his shifu jesse.

Jesse says Don't chase stock price and
O Neil says Pick the best in the best leadin in the industry


BUT How not to chase when u are choosing the best without chasing the price?

forgive me. Because I am reading both at the same time. I prefer Jesse's as I am not full time trader.

[Aspellian]

remember to invest with patience, passion and peace. Feel rich and prosperous and be wealthy!

[blid2def]

ChartNexus does have the STI. Look under World Indexes (WORLDINX).

Or you can look at $STI in StockCharts.com (no volume info though). Looks like we're near a multi-year resistance line (1994, 1996, 2000). Wow... didn't realize that. Then again, I'm not sure if StockCharts has adjusted for the STI data/component changes that happened er... last year or year before last?

Here's the chart from StockCharts: http://stockcharts.com/h-sc/ui?s=$STI&p ... 6172403822

[millionairemind]

Hi A Bro,

If uptrend is intact, best to hold on tight... but I hor, only human, sometimes GE KEANG... haha...

I have found thro' the 4 yrs of modeling CANSLIM for Singapore market that as long as US market don't break, just hold on. But if you hit your stop loss, you must take it. Sorry har, I no "see see first" on stop loss. Once hit, I take it without question. 9 times out of 10, it saved me from further grief.

Case in point, in a follow thro' last year, I was long swiber at $2 (20lots for first entry) if I remember correctly. On a day that market went up, Swiber went down on heavy vol., I cut out immediately. It proceeded to tank all the way below $1. See my post on Jul 30.

viewtopic.php?f=31&t=296&start=100

If I did not cut out my initial 20lots and continued to average down, I would probably be dead by now.

I found that cutting losses always saved me in the long run.

Cheers,
mm

[Aspellian]

remember to invest with patience, passion and peace. Feel rich and prosperous and be wealthy!

[Aspellian]

remember to invest with patience, passion and peace. Feel rich and prosperous and be wealthy!

[LenaHuat]

I have found thro' the 4 yrs of modeling CANSLIM for Singapore market that as long as US market don't break, just hold on. But if you hit your stop loss, you must take it. Sorry har, I no "see see first" on stop loss. Once hit, I take it without question. 9 times out of 10, it saved me from further grief.

............................................

I found that cutting losses always saved me in the long run.

Cheers,
mm

Absolutely Agree. 9 times out of 10, I will ruthlessly 'CUT LOSS'. I make exceptions for small holdings for sentimental reasons or when I'm too busy to get to my laptop or broker. But these must be smallholdings. Otherwise U will be surrendering $$ with 2 hands to the market.

The other change I would recommend is to acquire the technique of 'Averaging Up' instead of 'Averaging Down'.

Once dead broke (as in living/dying), 'changes' for the better are no longer possible. BTW, opportunities wait for no humankind.

[winston]

MM bro, we probably bought the exactly same stock at the same time but we have distinctly different outcomes. You cut loss per your rule, i averaged down and down and down per my naive rule back then

If one did not managed to Cut Loss at 7% and thereafter, watch it go down by 80%, at that time, it's not a bad time to average down if one is confident that the company's fundamental will improve in the medium term.

This round, a lot of people made money when they averaged down heavily in March

Cutting Loss is of course the preferred way to go but averaging down at the bottom, on the right company, can also be very profitable as well...

Play Devil's Advocate here mah ..

[LenaHuat]

This round, a lot of people made money when they averaged down heavily in March

Hi Winston
U are right if they had averaged down in March. But many would have continually been doing so for a long time b4 March 2009.

[winston]

Ha Ha .. it depends on when one average down and what positions that one has..

Let me share what I do:-

For me, I like to put my positions in one quarter at a time...

If I dont have a position, I dont have the sensory acuity on that counter ie. I'm not in tune with it's price action, I dont follow the analyst's reports that closely , I dont know what their competitor's are doing etc.

With a position, I'm very aware of what's happening with the company eg. price action, analy's report etc.

If the market is not doing well, I will not buy my second quarter. I may even sell some of my existing positions. Very seldom do I sell everything unless I dont like the company anymore.

Even if I have one lot in the company, it would help me be in tune on what's happening with the company ie. it's price action, analyst's report etc.

If I dont own the company, I will not be so in tune. I will not know when the price is stabiliing after a huge drop. I will not know when there's an uptrend and miss the time to average down heavily...

Anyway, we all have our own rules. My rule is not to follow something blindly but to modify the rule to suit my own style.

As I have said, Cutting Loss is a good rule though ..