Who Am I and Why Am I here

PuddinHead42 · April 1, 2024, 8:32pm

I am a newly retired investor who has been in the market since I was in high school in the late 70s. I once even asked from some stock shares for Xmas and got them! I have tried all sorts of styles from Ben Graham value in vesting, to random stock selection, to Motley Fool portfolios to Bill O’Neil’s CANSLIM approach. I had great success with MF and that helped me retire early, but with all those growth stocks, retirement became a little uncomfortable in 2022! I have tried CANSLIM on and off for years, but not that I am retired and have more time, I really want to take a serious swing at it. (using their approach and data, I did buy NVDA on a technical breakout in March 2016 at a split adjusted price of $8 and I still have 1/3 of the original buy, which is currently up 11,000%. Yes, this is a shameless brag, so what). If I had know the CANSLIM rules better, I would not have sold the other 2/3rds when I did.

Anyway, I have set up a dedicated account for CANSLIM trading and I wanted to find a TA board where I could discuss charts and also force myself to defend what I think are good opportunities.

If anyone wants to know about the CANSLIM approach, I can post that some day.

So, I will try to start posting some charts for discussion starting today.

Pete

andthereitis · April 1, 2024, 9:49pm

What is a good resource to better understand CANSLIM ?

PuddinHead42 · April 1, 2024, 11:44pm

To better understand CANSLIM, go to investors.com This is the website for “Investors Business Daily” which created by Bill O’Neil. Bill made a ton of money trading after studying some of the great traders. He became the youngest person to buy a seat on the NYSE and he made enough money to create this company. Many successful traders use their methods.

Investors.com has many free videos that go through all the rules. It also has a daily summary video that I think is available with no subscription, you should watch that every day. I forget how much I pay for the “prime” access to investors.com, but it is worth it. I also pay $1400/year for the MarketSurge charting service. Those are the charts you will see me post. It is expensive but invaluable if you end up doing this for real. Let me know how it goes.

Eventually, you could buy his book “How To Make Money In Stocks”. I am re-reading it now and have been refreshed and inspired by the 100 great stock charts he annotates in Chapter 1.

Note, I do not do short term trading, I am looking for growth stocks with great fundamentals and a proper technical setup. The hope is to do ok over time, but every now and then find a long term winner like I did with NVDA. RIght now, I am holding a number of stocks I bought on the follow-through day on 11/2/23 (and just beyond that date). Also have been buying and selling some stocks later in this rally.

Lakedog · April 2, 2024, 2:31pm

Greetings Pete!
Welcome. Exciting to see some new blood and chart interest flow into the site.

CANSLIM is interesting, got to first learn about it 10 years ago from the man himself in a canned presentation at an AAII meeting. Have intermittently used it’s principles. While it’s easy to independently get the key earnings data, they do rely on proprietary Comp Ratings and RS Ratings. There’s proxies that you can generate, but it’s all geared towards pedaling their service. But then, they put in the work so guess you can’t argue.

Your charts look like they are from Leaderboard or MarketSmith, do you have a membership in one or both? I did their trial LB membership a couple years ago and liked it but couldn’t justify the expense as I only intermittently relied upon it. Do you use any other charting program?

From that LB trial, one thing that struck me, they are fairly active in their trading. Positions changed a lot more often than I expected. Anticipated more buy-and-holding.

Will look at your other posts over today and see if I have anything to add.

Lakedog

PS Vibha Jha is a retired healthcare administrator who gained 155% in 2020 when she entered the US Investing Championship. She has built her approach off of CANSLIM. She did an interesting interview recently with traderlion:

Just FYI

Quillnpenn · April 14, 2024, 12:49am

Pete,
Are you an Investor, Swing Trader, or a HODler. ( hanging on for dear life)…

Lets’ peruse the following that will make you a very wealthy person in a short period of tme. There will be some doubting thomaas’ but some stocks are into the 7 to 8 figures per Simon Sez III buying and selling rules. eg… COST, V, META, APPL, NVDA, GDX, teeeter tottering GLL / UGL, SPXL / SPXS. I bought COST in May of 2007 and have Swing Trading ever since with 1000 shares on May 4th. I also own all of the SPDRs since 2006.

Wikipedia says that

‘Simon Says’ is a children’s game for three or more players. One player takes the role of “Simon” and issues instructions to the other players, which should be followed only when prefaced with the phrase “Simon says”. Players are eliminated from the game by either following instructions that are not immediately preceded by the phrase, or by failing to follow an instruction which does include the phrase “Simon says”. It is the ability to distinguish between genuine and fake commands, rather than physical ability, that usually matters in the game.

Simon Says’ is a mechanical --i.e., non-discretionary-- trading system whose embedded assumption is this. “Follow the rules, and you’ll make money. Don’t follow the follows, and you’ll lose.”

" The Simple Simon Trading Method per Simon’s Werld® "

Simon III and Co. will make you a wealthy person over time by learning Risk and Money Management skills.

See Simon Sez III below

re: Swing Trading
re: Stockcharts
re: Barchart
re: Price Label
re: 999 to 1000 percent batting average
re: TinyURL.com - shorten that long URL into a tiny URL 17 changes all day.
re: Out of the Gate
re: Finish Line

So What Is Swing Trading?

Swing trading is the buying and selling of stocks all within the timeframe of a few days or several weeks. It’s a lot like day trading except for the timeframe. After each buy and sell cycle, your slate is clean with no carry-over. It’s the opposite of passive, low-maintenance investing. Swing trading is active short-term investing because the “buy and hold” mantra does not apply.

Simon Sez III. “Wait-one bar” after Price label to Price label rule signal per Simon’s Werld® by Quillnpenn revised 12/1/2020.

Re: New ACP stock charts via Stockcharts.com 9 for subscribers or non-subscribers. To see charts in full detail, you might have to be a subscriber.

Re: COST - ACP | StockCharts.com 26 - - - Cash Cow. One can retire on just this one stock.
Re: HD - ACP | StockCharts.com 7 - - - Cash Cow. One can retire on just this second stock as well.
re: $ETHUSD daily - https://schrts.co/VrxWsRmD- 6 - - Let Simon tell you what to do with Patience and Discipline.
re: $ETHUSD 4 hour - ACP | StockCharts.com 5

When a Price label appears to do the following:

1 ) For the TOP Price Label, we wait and wait until the next bar when the price drops below the high signal to SELL the stock to help protect your ASSets.

2 ) For the BOTTOM Price Label, we wait and wait until the next bar when the Price bar is rising upwards to BUY the stock.

For the very first time when viewing a chart, the default will appear, however, make some minor adjustments for a better view. When the Setup procedure is complete (see way below), the charts will always pop correctly thereafter.

Cheat Sheet:

Class - Simon Sez III - Holy Grail

Holy Grail: “Something that people want very much, but which is very
difficult or impossible to achieve”. Like getting a hole-in-one on a golf course.

Okay now for the Holy Grail part of having fun without really trying.
I believe we can make money with the aid of Simon. If NOT, you get detention for failing to read and review the two (2) simple rules.

The Rules:

Here are the following rules that I found so far broken into two (2)
parts. TOP and BOTTOM.

To SELL @

TOP: When you see the Price label = Wait-one bar rule applies to SELL to help protect your ASSets.

When you see the RED Candle, GREEN Candlestick BELOW the Price label (centered) = SELL immediately when it appears.

To BUY @

BOTTOM: When you see the Price label (Out of the Gate) = Wait until you see the next Green Bar.

When you see the GREEN Candle, RED Candlestick ABOVE the Price label (Centered) = BUY immediately when it appears.

I am using the Daily and the 30-minute charts to make money faster. 4-hour chart for the cryptos all day long.

These charts are good for swing trading and for long-term investments such as the XL’s (xle, xlc, xlf, et.,al) to hold and trade forever since 1999. Includes Dividends at the end of each QUARTER eg…3-6-9-12. Stocks must be bought before the ex-dividend date. NOT on, but before the date to get the dividend checks thereafter.

XLK Snapshot - The Technology Select Sector SPDR Fund XLK - Technology Select Sector SPDR Fund.

Snapshot - All Sector SPDR ETFs have been swing trading the XLs since January 1999 with a 999 to 1000 percent batting average.

These charts are perfect for Tetter Tottering via the MDP (Million Dollar Portfolio) eg…SPXL / SPXS : QQQ / PSQ.

The Teeter Totter Principle is all about using a “seesaw” to balance your Nest Egg’s cash and investments.

eg. . . . . ACP | StockCharts.com 17
. . . . . . . ACP | StockCharts.com 6
. . . . . . . ACP | StockCharts.com 4

Note with the above as a sample POSITIVE CASH FLOW. We would have sold TBT and bought TLT per Simon Sez rules as noted above.

                                 INVERSE
        DDM - Default Style	DDM / DXD	
DGP - Default Style	DGP / DZZ	
DIA - Default Style	DIA 	
DIG - Default Style	DIG / DUG	
DPK - Default Style	DPK / DZK	
DRN - Default Style	DRN / DRV	
DRV - Default Style	DRV / DRN	
DUG - Default Style	DUG / DIG	
DUST - Default Style	DUST/ NUGT	
DXD - Default Style	DXD / DDM	
DZK - Default Style	DZK / DPK	
DZZ - Default Style	DZZ / DGP	
EDC - Default Style	EDC / EDZ 	
EDZ - Default Style	EDZ / EDC	
ERX - Default Style	ERX / ERY	
ERY - Default Style	ERY / ERX	
FAS - Default Style	FAS / FAZ	
FAZ - Default Style	FAZ / FAS	
FXE - Default Style	FXE / 	
GASL - Default Style	GASL/ GASX	
GASX - Default Style	GASX/ GASL	
GLD - Default Style	GLD / UGL	
GLL - Default Style	GLL / UGL	
IYR - Default Style	IYR / 	
KBE - Default Style	KBE	
MIDU - Default Style	MIDU/ MIDZ	
MIDZ - Default Style	MIDZ/ MIDU	
NUGT - Default Style	NUGT/ DUST	
QID - Default Style	QID / QLD	
QLD - Default Style	QLD / QID	
QQQ - Default Style	QQQ / PSQ	
SDOW -Default Style     SDOW/ UDOW	
SDS - Default Style	SDS / SSO	
SH - Default Style	SH  / SPY / SJB	
SKF - Default Style	SKF / UYG	
SLV - Default Style	SLV / 	
SMH - Default Style	SMH	
SMN - Default Style	SMN / UYM	
SOXL - Default Style	SOXL/ SOXS	
SOXS - Default Style	SOXS/SOXL	
SPXL - Default Style	SPXL/ SPXS	
SPXS - Default Style	SPXS/ SPXL	
SPY - Default Style	SPY / SH / UPRO/ SJB
SQQQ - Default Style	SQQQ/ TQQQ	
SRS - Default Style	SRS / URE	
SSG - Default Style	SSG / USD	
SSO - Default Style	SSO / SDS	
TECL - Default Style	TECL/ TECS	
                        TLT / TBF / TBT
    TECS - Default Style    TECS/ TECL	
TMF - Default Style	TMF / TMV	
TMV - Default Style	TMV / TMF	
TNA - Default Style	TNA / TZA	
TQQQ - Default Style	TQQQ/ SQQQ	
TVIX - VelocitySharesTVIX/ 	
TYD - Default Style	TYD / TYO	
TYO - Default Style	TYO / TVD	
TZA - Default Style	TZA / TNA	
UDN - Default Style	UDN / UUP	
UDOW - Default Style    UDOW/ SDOW	
UGL - Default Style	UGL / GLL	
URE - Default Style	URE / SRS	
USD - Default Style	USD / SSG	
UUP - Default Style	UUP / UDN	
UYG - Default Style	UYG / SKF	
UYM - Default Style	UYM / SMN	
XLB - Default Style	XLB / 	
YANG - Default Style	YANG/ YINN	
YINN - Default Style	YINN/ YANG	
ZIV - VelocityShares Daily Inverse VIX Medium Term ETN	ZIV

Quillnpenn -

p.s. One other thought would be the PettyCa$h as a Kamikaze play using Simon’s different rules for Six or fewer days.

Attached is a sample with WM since May 2023 with ZERO Loses. It does matter waht stock or ETF, you trade per the two (2) rules that can be written on the back of a business card.

Quill - a poor church mouse scratching for a living as a Swing Trader for over 48 years and an Investor for over 60 plus years.

Quillnpenn · April 14, 2024, 1:26am

Stockcharts, Barchart and TradersPRO - ( use sell to buy and Muscle stocks.)

How to build the Stockcharts chart.

The journey starts here: Simon Sez III in review

On a 3x5 card write down as a kwik reference the rules in RED - GREEN - BLUE ink if you forget the rules.

The chart shown I review every day from my SPDR’s portfolio on the right hand side and look at the 4th ICON down (globe). It only takes about 3 minutes.

To call up a chart like XLE as an example. Simon III shows you exactly WHEN to buy and WHEN exactly to Sell the stock per the two (2) simple wait - one- day rules. It is impossible to blow it.

=
How to build the Chart

on the URL bar type in stockcharts.com then Enter
click on "Charts & Tools.
find StockChartsACP and enter a Symbol. . . Eg. XLE
It will most likely default to a strange looking chart
at the top of the URL bar we are looking for DAILY OHLC BARS (open-high-low-close). Later on you can change to you favourite bells and whistles.
on the left hand edge is 5 icons
click on the second ICON down
high lighted is XLE blah blah blah will appear
for now, scroll down and find “Murphy” and check it off. Way later you can changeto what to what ever you wish
click on the second ICON to close out
click on the first ICON
we will now be adding 2 moving averages
scroll down and find Moving Averages-exponential.
click on it for the first one to be 20 ema.
click on it for the second one to be 200 ema.
this is important, because Stockcharts will always try to default to 20 sma and 200 sma.
you should confirm the ema’s by clicking on the first ICON.
stay on the first ICON and click on the far right of the name XLE to what looks a wheel.
scroll down to “other settings” and check off - extended hours - last price perference line - price labels - y axis labels - if not done already.
next move to “OHLC Bars Settings” -GREEN BOX for up Color - RED BOX for down Color.
continuing on down, and find " Events" - check off Earnings dates, Dividends and Predefined alerts.
moving on down and find Alerts - should be default to a BLACK BOX line color.
click on the Close box at the below.
click on the first ICON at the top to close.
DON’T touch the other ICONs for now until later.
Back to the Chart
Save the chart Layout
click on the Bottom ICON (5th one down).
go to the bottomand click on the GREEN BOX - “Save Layout”
Give it a name/s to be used later.
I chose " simon ", you can chose you favourite name.
the name of the layout should appear to the right of the 4th ICON.
click on the 5th ICON to just show the current chart.
some time the cursor disappears. Click on the ICON to the right of the word " SAVE " to what looks like a cross hair.
when calling up a chart, confirm in the upper left hand corner the ema’s should appear with the ticker symbol.
if the SMA’s appear, click on the 5th ICON, click on layout name ( simon ), then click on the 5th ICON again to close out
36a. Or click on the URL and click on the ICON to the right of the word RANGE will then give you the EMA 20, EMA 200 with one click.
the chart now appears ready for review.
Later we will go over some scanning tools to find stocks Out of the Gate.