Trading Strategies

[Lucavia123]

I am hoping to get some insight into the different trading strategies that are out there. This would be a huge help for new and advance traders alike. Please feel free to list your favorite strategy and if possible some info on where others can learn these strategies.

I am a new investor and am currently learning. I like using the CANSLIM method for finding strong fundamentals then using technicals to determine when to buy. I am hoping to learn more about Trend trading amd candle stick charting.

[skiracer]

I am hoping to get some insight into the different trading strategies that are out there. This would be a huge help for new and advance traders alike. Please feel free to list your favorite strategy and if possible some info on where others can learn these strategies.

I am a new investor and am currently learning. I like using the CANSLIM method for finding strong fundamentals then using technicals to determine when to buy. I am hoping to learn more about Trend trading amd candle stick charting.

Luc, there is a book out there called "Bulkowski's Chart Patterns" It is the bible of chart reading and interpretation. Worth picking up a used copy somewhere like Amazon and reading it. It will enlighten you on the technical aspects of interpreting charts and understanding what the numerous patterns suggest.
You need a plan. It should consist of timing your entry, determining the current trend, stops, targets, money management, and risk vs reward and math expectancy if you are going to trade on the technical aspects. Good luck this coming year.

[ninner]

I am hoping to get some insight into the different trading strategies that are out there. This would be a huge help for new and advance traders alike. Please feel free to list your favorite strategy and if possible some info on where others can learn these strategies.

I am a new investor and am currently learning. I like using the CANSLIM method for finding strong fundamentals then using technicals to determine when to buy. I am hoping to learn more about Trend trading amd candle stick charting.

i would advise to continue to use the CANSLIM method..its a great method wheen the market is in a uptrend and you find great stocks...if the market is going sideways no method will work..its a bad environment and you should be waiting for the next opportunity to come around which will occur eventually.


all the best

[skiracer]

[QUOTE=ninner;111815]i would advise to continue to use the CANSLIM method..its a great method wheen the market is in a uptrend and you find great stocks...if the market is going sideways no method will work..its a bad environment and you should be waiting for the next opportunity to come around which will occur eventually.

If there was one method I would stay away from it would be anything that O'Neil or IBD preaches on when to make entries or targets. Can't knock CANSLIM methodology for finding good stocks but by then they are in the later stages of their move upward and you will miss the best part of the trades usually. But it will lead you in the right direction for finding fundamentally sound stocks.
Any well rounded trader should be equipped to understand the markets under any conditions or trend and be able to make a decision about whether to be in it or out of it due to trend or conditions.

[Deaddog]

There are only a couple of strategies.
Either follow the trend or trade in the range.
Breakouts hope to catch the trend, waiting for a pullback is taking advantage of the trend, and bottom fishing is looking to catch a trend reversal.
Taking advantage of support and resistance levels; Buying at or near support and selling at resistance takes advantage of a trading range.
Having both strategies in your arsenal makes your chances of survival a little better.

[ninner]

[QUOTE=skiracer;111816]

i would advise to continue to use the CANSLIM method..its a great method wheen the market is in a uptrend and you find great stocks...if the market is going sideways no method will work..its a bad environment and you should be waiting for the next opportunity to come around which will occur eventually.

If there was one method I would stay away from it would be anything that O'Neil or IBD preaches on when to make entries or targets. Can't knock CANSLIM methodology for finding good stocks but by then they are in the later stages of their move upward and you will miss the best part of the trades usually. But it will lead you in the right direction for finding fundamentally sound stocks.
Any well rounded trader should be equipped to understand the markets under any conditions or trend and be able to make a decision about whether to be in it or out of it due to trend or conditions.

skiracer, as i said earlier...canslim works however, its people that buys late...if you listen to WON in 2009 he was buying alot of the big winners like AAPL, BIDU,PCLN...NFLX, AMZN...WHEN they were ccoming out of first stage bases and sometimes even before as he realized that these were the big liquid leaders that funds were buying up

[IIC]

Good idea to look for fundamentally sound companies and then wait for the technicals to be right. However, I'd suggest staying away from strict Canslim...Since 2000 it has not worked well.

As an example look at the Canslim Select Fund (CANGX). These guys are featured at IBD and they are suppossedly Canslim Experts.

The fund is down 0.89% over the past 4 years
http://finance.yahoo.com/echarts?s=C...ale=off;source=;

I've heard arguments from diehard Canslimmers that the reason for the poor performance is that they have too much money to move...That's hogwash...It is a very small fund w/ only $70mil as of 9/30/11.

The question you should ask yourself is:

"If the CANSLIM experts can't make money w/ Canslim how the heck can I"?

You could have done better than they did leaving your money in cash the last 4 years.

Doug

[ninner]

so how did i make OVER 200 percent in BIDU, 120 percent in CAT, AND over 200 percent in NFLX since 2009 bottom...im not in them anymore since i folow the CANSLIM sell ruless...however, bright one.....it can be done...and will be done again....you have to follow the rules.....

cheers

[IIC]

so how did i make OVER 200 percent in BIDU, 120 percent in CAT, AND over 200 percent in NFLX since 2009 bottom...im not in them anymore since i folow the CANSLIM sell ruless...however, bright one.....it can be done...and will be done again....you have to follow the rules.....

cheers

Maybe the Canslim Select Fund should hire you to manage CANGX

[ninner]

maybe....i work hard at this and follow the rules....i dont care what anyone says you dont need all these indicators ...just follow price and volume action and WONS rules and you can do well in the long run .....but you have to be strict...to be honest, i dont even follow ibd big picture anymore...i do my own analysis and it has served me well so far at least.....the only other book i would recommend is Timing the trade by tom obrien...it supplements the price and volume aspect however, its abit subjective and you have to be careful when using some of the principles in and look at the bigger picture...


all the best.

[Lucavia123]

Luc, there is a book out there called "Bulkowski's Chart Patterns" It is the bible of chart reading and interpretation. Worth picking up a used copy somewhere like Amazon and reading it. It will enlighten you on the technical aspects of interpreting charts and understanding what the numerous patterns suggest.
You need a plan. It should consist of timing your entry, determining the current trend, stops, targets, money management, and risk vs reward and math expectancy if you are going to trade on the technical aspects. Good luck this coming year.

Which book do you recommend to start? All 3 are by Bulkowski.

Getting Started in Chart Patterns
Encyclopedia of Chart Patterns
Trading Classic Chart Patterns

Thanks for the quick and helpful reply.

[Lucavia123]

Thanks everyone for the great ideas.

Does anyone do options and what is a good resource for learning that aspect of the market?

[skiracer]

Which book do you recommend to start? All 3 are by Bulkowski.

Getting Started in Chart Patterns
Encyclopedia of Chart Patterns
Trading Classic Chart Patterns

Thanks for the quick and helpful reply.

Encyclopedia of Chart Patterns. You should be able to find a used edition somewhere. Maybe Amazon. Just checked out amazon for paperback and used editions. no dice on the paperback and didnt see any used ones advertised. new one is going to cost you around $75 plus shipping from amazon. I'll look around for some more sites that are geared towards interpreting chart patterns.
Regarding Options, check out www.optionsinstitute.com or www.cboe.com. I'm sure there are hundreds of sites for options.

[IIC]

Which book do you recommend to start? All 3 are by Bulkowski.

Getting Started in Chart Patterns
Encyclopedia of Chart Patterns
Trading Classic Chart Patterns

Thanks for the quick and helpful reply.

You might start out going to Bulkowski's site at http://thepatternsite.com and also the Stockcharts Cart School at http://stockcharts.com/school/doku.php?id=chart_school

Best...Doug

[skiracer]

You might start out going to Bulkowski's site at http://thepatternsite.com and also the Stockcharts Cart School at http://stockcharts.com/school/doku.php?id=chart_school

Best...Doug

two good ideas doug. that pattern site is a good one and I have it on my favs bar. use it quite frequently, dont know why I didnt list it.