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Author: PuddinHead42 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 23022  
Subject: How to Start CANSLIM Date: 11/10/2013 6:44 PM
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for any newbies or curious cats, here is a way to start

Any following steps mentioned for the web site are free to the pubic (I am pretty sure, let us know if false).
1) go to http://www.investors.com/offer/actionsteps.aspx and watch all the educational videos.
2) go to investors.com and click on the Education link and watch any videos you did not see in step 1.
So by now, you have a great idea on the philosophy and approach of CANSLIM and IBD.
3) watch the video here after dinner each market night..http://ibdtv.investors.com/ it is the daily wrap and tells you if the market is currently in up trend, down trend or under pressure.
4) Once you are getting the hang of what they are talking about in step 3, look at the market charts each day before you watch the video and try and guess what they will say about it. Once you are good at guessing, then you are good at knowing and are ready to get more serious.
- note, if you don't have the patience for this, then you don't have the patience necessary to really learn the system and execute properly, so you can just drive by my house and put all your money in my mailbox. Thanks.

5) The free IBDTV videos have the occasional "daily stock analysis" of an individual stock. Pay close attention. Watch that chart every day for 2 weeks and see if match the price/volume action you see with the rules of CANSLIM. When would you buy if you were ready to buy.
6) Set up the "My routine" list with all the free things you can do each day.
7) Check they daily screen and look at a chart of each stock. Which ones are in a base and ready to be put on a watch list (create a watch list and check every day. Do not buy yet). Which broke out a while back and are extended? (can you see where they broke out?) Which are just kind of bouncing around with no helpful chart.

8) after a few months, buy the book "How to Make Money in Stocks", finishing within two weekends. A lot of it will read fast because of all the work you did above.

9) Free trial. You can get a two week free trail with the website, sometimes you can get a 4 week trial. This lets you see all the ratings and stock analyses. (a few weeks ago they open access to the website with no credit card commitment, then they allowed you to buy an additional 8 week trial for $20.)

Buying your first stock:
Many people look for a new strategy because they have not been successful and think the next thing is the real thing. You may be excited to try this - the propaganda is very convincing. It is a lot of work. If you have put in the work above, you might have what it takes. Our psychology wants us to cheat the rules. "I'm not selling at the 8% rule, it will bounce back." "I can break even". "Don't care if the market it in a correction, this stock is great", "Don't need to wait for the breakout, I can buy early", etc. Be careful. Know yourself. Question your emotions. Be a computer, not a human!

So if the market is in an uptrend, especially if it recently started, then build your watch list, set some alerts and get ready to buy. But do this: ONLY buy one stock. Buy the best stock on your list and watch it like a hawk, every day. (Of course, "Buy Right" like you will have learned). For this, don't buy a stock you have loved and always wanted to own, your judgement will be clouded. I find plenty of stocks I have never really heard of, but they have good fundies and charts and can do every bit as well as their more famous brothers.

Do not buy a second stock until you have made at least 10% on first or sold it (for stop loss or profit lock in). You need to be unemotional and if you start buying 2,4,6, stocks right away you will inevitably be burned and get your psyche all screwed up for next time.

check out this board here, they post lots of lists from different screens, but also post the IBD 50 list.
http://boards.fool.com/kuaaina-partners-110654.aspx?mid=3092...


Do you have the time?
Success is not free, this approach takes time. Can you spend hours each week? Can you execute this with a day job? When a stock breaks out while you are at work, how will you know? Can you get real time alerts in your e-mail? Can you trade without getting fired?

All things to consider.
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