Stock Picking Secrets CAN SLIM system

CAN SLIM system

Each letter in the CAN SLIM system stands for one of the seven basic fundamentals of selecting outstanding stocks. Most successful stocks have these seven common characteristics at emerging growth stages, so they are worth committing to memory.

C = Current Quarterly Earnings per Share: The Higher, The better

A= Annual Earnings Increases: Look for Significant Growth

N= New Products, New Management, New High: Buying the Right Time. And most important, buy stock as they emerge from sound, properly formed chart bases and begin to make new highs in price.

S= Supply and Demand: Shares Outstanding Plus Big Volume Demand. Look for big volume increases when a stock begins to move out of its basing area.

L= Leader or Laggard: Buy market leaders and avoid laggards. Buy the number one company in its field or space. Most leaders will have Relative Price Strength Ratings of 80 to 90 or higher.

I= Institutional Sponsorship: Buy stocks with increasing sponsorship and at least one or two mutual fund owners with top-notch recent performance records.

M= Market Direction: Learn to determine the overall market direction by accurately interpreting the daily market indexes' price and volume movement and the action of individual market leaders. You need to stay in gear with the market.

                                                     -------- How to Make Money in Stocks   William J. O'Neil

TWSE Index

2020年9/23日大盤指數收12,583.88 (-61.63)     
Weekly Chart: 10-Week WMA and 30-Week WMA

 

 

 

 

 

How I discovered the million dollar concept

No matter how bullish the technical structure of a stock is or how impressive its rate of growth and yield figure, these things do not and cannot be guaranteed to influence prices!

Then it hit me…the only thing that can possibly make a stock go higher is an imbalance of buyers and sellers. It is as simple as that. When there are more buyers than sellers, prices will advance. Conversely, when there are more sellers than buyers, prices will go down… regardless of the fundamentals!

You see, to spot professional accumulation, all we need to do is find an example of steady and determined buying in the face of a weak stock market. When this happens we have a good idea that professional buying is taking place.

Professional selling will show up when we see consistent and determined selling in the face of a strong market. That is, when the market is surging up, but selling pressure enter a particular stock we can bet that we have a stock undergoing professional, informed selling.

Remember, we want to detect professional accumulation and distribution. We’ve established that the best way to do this to find individual stocks whose price action differs from the overall market.

                                                                                                                        By Larry Williams

Very Useful Trading Rules developed by Wall Street Master: The 1-2-3 Rule and The 2B Rule

The 1-2-3 Rule

For a trend to change, three events must occur.

1. The trend line must be broken - prices must cross the trend line drawn on the chart.
2. Prices stop making higher highs in an uptrend, or lower lows in a downtrend.
3. Prices must go above a previous short term minor rally high in a downtrend, or below a previous short-term minor sell-off in an uptrend.

The 2B Rule

In an uptrend, if prices penetrate the previous high, fail to carry through, and then immediately drop below the previous high, then the trend is apt to reverse. The converse is true for downtrends.

Stock Market Wizards

Steve Cohen:

40% of a stock's price movement was due to the market, 30% to the sector, and only 30% to the stock itself, which is something that I believe is true. I don't know if the percentages are correct, but conceptually the idea makes sense. 

I compile statistics on my traders. My best trader makes money only 63% of the time. Most traders make money only in the 50 to 55% range. That means you're going to be wrong a lot. If that's the case, you better make sure your losses are as small as they can be, and that your winners are bigger.

All traders make mistakes; the great traders, however, limit the damage.

There is no single right way to trade the markets.

It is important to make sure you have a good reason for putting on a trade.

No single style or approach can provide superior results over long periods of time. To continue to outperform, the great traders continue to learn and adapt.

Cup-With-Handle Pattern

283% increase in 27 weeks

Cup-Without-Handle Pattern

267% increase in 38 weeks