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CANSLIM


Thread replies: 6
Thread images: 1

File: CANSLIM.gif (88KB, 620x1038px) Image search: [Google] [Yandex] [Bing]
CANSLIM.gif
88KB, 620x1038px
What does /biz/ think about CANSLIM selection process?

>pic related
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Shameless self bump.
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And a final one.
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seems stringent. what are the time frames and it doesn't have exit framework. arguably more important than the entrance criterion insofar as that may require less robotic decision making.
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its less a selection process and more a mnemonic for things that could potentially be indicative of growth

if your process starts and stops at CAN SLIM you're not gonna have a good time
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>>1278120
OP's image is a good summary of CAN SLIM selection criteria but it is not representative of the system in its entirety.

If you read O'brien's book, there is actually an entire chapter (2 actually, iirc) dedicated to determining exit signals. O'brien himself states the importance of exiting at the right time, citing the first time he actually discovered this method, he only broke even because he held on to the stocks for too long.

The recommend take-profit in the book is 20% with a stop-loss of 7%, this gives a P/L of ~3:1. But there is an entire list of other sell signals as well.

I honestly think its a great method, it makes sense economically and has had good performance even since his book was published. In some ways its the opposite of the Graham school (ignoring P/E, buying at price highs etc.) yet the profits are there if you do the work.
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