Hi , ever heard of the CANSLIM stock investment method coined by the famous William O'Neil ? I am a big fan of his newspaper and books.
While looking at my stock portfolio...I wonder if similar principles can be applied to FX. So before I give you my FX version, below is the overview of the original rules acronym into seven letters for stock investing.
C : current earnings per share
A : annual earnings
N : new product or new high (price)
S : shares outstanding
L : leader ?
I : institutional backing
M : market trend/indices
CANSLIM for FX (with intraday emphasis) :
C : current price compared to previous 3 to 5 days
A : available information, technical and fundamental eg. price patterns, released news data
N : new high/low, near high/low, news releases
S : strategy suitability, strength of price under different time frames
L : leader or laggard when measured against recently highly co-related pairs
I : institutional reports, bank projections, broker analysis...they all count
M : main trend, minor trend, market trends of other related industries eg. oil, gold etc
And there you go, CANSLIM for FX....I'm surprised it took me less than 15 mins to come up with this...however this is a very close illustration to how I trade (maybe thats why).
Fellow forumers, if you have anything you think I can add within the C A N S L I M acronym, please share with me !! Thanks in advance
People who are interested in the details behind each terminology, just post your questions here !!
Regards
mt
While looking at my stock portfolio...I wonder if similar principles can be applied to FX. So before I give you my FX version, below is the overview of the original rules acronym into seven letters for stock investing.
C : current earnings per share
A : annual earnings
N : new product or new high (price)
S : shares outstanding
L : leader ?
I : institutional backing
M : market trend/indices
CANSLIM for FX (with intraday emphasis) :
C : current price compared to previous 3 to 5 days
A : available information, technical and fundamental eg. price patterns, released news data
N : new high/low, near high/low, news releases
S : strategy suitability, strength of price under different time frames
L : leader or laggard when measured against recently highly co-related pairs
I : institutional reports, bank projections, broker analysis...they all count
M : main trend, minor trend, market trends of other related industries eg. oil, gold etc
And there you go, CANSLIM for FX....I'm surprised it took me less than 15 mins to come up with this...however this is a very close illustration to how I trade (maybe thats why).
Fellow forumers, if you have anything you think I can add within the C A N S L I M acronym, please share with me !! Thanks in advance
People who are interested in the details behind each terminology, just post your questions here !!
Regards
mt