What separates one investor trading with the CANSLIM® Investment System from another?
- Success in investing and trading is impossible without the proper mind set and mental strategies. The CANSLIM® Investment System requires active portfolio management and the ability to remain flexible with your opinion.
- According to William J. O’Neil it can take years to master the CANSLIM® Investment System. People often mistake time with experience. Understanding this critical difference usually separates those who succeed from those who fail. In our opinion, you can only gain experience by fully engaging in the process. If you are not fully engaged you can put time in but you never gain experience using the CANSLIM® system.
- So many investors and traders begin this journey full of enthusiasm and quickly fall to the wayside when faced with adversity. The CANSLIM® Investment System is not easy! Everyone will make mistakes. It takes a lot of hard work, time and focus to achieve success.
- When C.J. met with William J. O’Neil and his portfolio managers during the CANSLIM® Masters Program he quickly learned that each PM had their own style and would very often have different opinions and hold different stocks in their portfolio. Some were sitting in 100% cash and others were partially invested in their portfolios at the time. Some would trade off the 50 day moving average if the stock had strong volume others would be taking in stock as it approached the 50 if the volume was coming in light. While they were all very successful it was interesting to notice that they utilized the CANSLIM® Investment System according to their own trading style.
- You must approach the use of margin with a sense of respect and caution. The use of leverage is a sword the cuts both ways and can amplify either gains or losses.
- To the rules of the CANSLIM® Investment System. To be successful you must be disciplined.
- to dedicate to research and the markets. THE 10 YEAR OR 10,000 RULE-Scientific research has concluded that it takes eight-to-twelve years of training for a person to reach elite levels. This is called the ten-year or 10,000 hour rule, which translates to slightly more than three hours of practice daily for ten years (Ericsson, et al., 1993; Ericsson and Charness, 1994, Bloom, 1985; Salmela et al., 19
“It takes 10 years of extensive training to excel at anything”
Herbert Simon – Nobel Laureate
- Once you put in the time to become a master you must then be prepared to put in the time do the actual work! How much time are you willing to commit to the markets and sacrifice from your career and loved ones? Are you confident enough to compete against professional investors and traders? Time is our scarcest resource. The allocation of our time is by far hands down the most important source of our productivity.
- The burning desire to be the best.
Risk Management vs. Reward Chasing:
- What makes the CANSLIM® Investment System so powerful is that it has both a great offensive and defensive strategy. The balance of the two is key to unlocking long term returns and how you tip the scale according to your own style can change the returns you experience during any given time frame.