Canslim and High Growth Stock Investing does Not Work Anymore???
Firstly Canslim is a registered trademark of Investors.com. Secondly this is not my statement rather it came up in one of my telephone sessions last weekend with an investor keen on improving his stock trading. I told this student that I will agree to disagree about Canslim. Personally I am an avid fan of Bill O’Neil and Investors.com.
Every investment type of model has various periods of success and more so…struggle. He is a new investor and very frustrated ( rightfully so) with many failed breakouts of leading stocks and choppy market action. I explained trading is not supposed to be fun…entertaining…or EASY!! It always has it’s challenging periods…I asked him…if it was so easy…why do 90% + fail in trading?
For the last 3 years, managed futures and trend following have been extremely difficult! So much for Millions in up markets and millions in down markets. It was choppy without trends and many CTAs quit.
Low and behold when the vast majority of investors have pulled out their money and CTAs quit, the last quarter of 2014 was Great for many trend followers who were short crude oil and currencies. Out of nowhere profits were generated…However..
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING COMMODITY FUTURES, OPTIONS, AND FOREIGN EXCHANGE (“FOREX”) IS SUBSTANTIAL
As I stated…trading is hard. It takes dedication. It takes commitment. It takes perseverance. It takes having an exact trading plan and routine.
My teaching and mentoring help me as a trader. When I hear all the stories of traders who have not succeeded for a myriad of reasons it reinforces how tough trading really is…
Canslim is not dead nor was trend following. Currently in the stock market we have 5 Distribution days on the SPY. This shows institutional selling. The market is in a choppy period. This can continue for quite sometime…
That is why you need a trading plan….