Teach a man how to fish…
We at the stockmarkethacker.com are technical and system traders. That means that we do not take into account stock fundamentals at the specific time that we enter a trade. However, we do try to gleam diamonds in the rough to populate our ever-changing lists.
We use mostly the parameters that were discussed in our post “CANSLIM-A Sound System to Select Growth Stocks”. We also add a positive cash flow to the mix. Cash flow is used to prevent inflated earnings due to misrepresented non-cash expenses such as depreciation and amortization. Think think Enron.
We use two sites that offer free stock scanning capabilities: Yahoo’s Java Stock Scanner and the scanner embedded in Zignals.com. Our settings are:
1. Return on Equity over 17.
2. Quarterly Earnings increasing over 25 percent.
3. Yearly Earnings increasing over 25 percent.
4. Quarterly Revenues increasing over 25 percent.
5. Yearly Revenues increasing over 25 percent.
6. Free Cash Flow over 0 or Free Cash Flow/Number of Shares over 1.
We do deviate from CANSLIM in that we do not take into consideration the average volume traded or recent relative strength. We are just trying to uncover potential winners for future trades. We recommend running the scans once a week.
Fin.
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I am a dad, professional engineer, MBA student, and a financial fanatic. I can help you make money in the stock market. I use Fibonacci techniques for retracements and targets, technical analysis, some little fundamental analysis, and automated systems trading. I also trade options. In addition, I use CANSLIM to get neat growth stock ideas. No fluff and no BS.
If you want to discuss stocks, options or personal finance you are welcome to follow me in Twitter (@smarkethacker) or drop me a line to smh@stockmarkethacker.com. In addition, consider subscribing to my RSS feed located in the top right hand corner.
interesting method, what has been your return using these parameters ?? Do you use th e CANSLIM method even when some sectors are clearly hot, like gold was last year?
My return has been better than index average. I had a year of over 100 percent return. This year my accounts are up about 5 percent which is an accomplishment on a non-trending choppy market. We do not do sector based investing. We trade systems and then we evaluate individual picks for likelihood of success using technical analysis before we enter the positions.
Do you have a minimum timeframe for holding positions or a set exit strategy?
We use a parabolic exit on most of my systems. We also use a fix loss stop and a signal change stop on the other system we trade. Nothing is left to chance. We do not use time stops even though you could argue in favor of them.
Im sorry if this is a bit random but what made you put that picture with the man and the fish up lol.
Ill say one thing it made me click on the post
Give a man a fish and you would feed him for a day. Teach a man how to fish and you will feed him for a lifetime.