Ken's Mail Bag 11/05/09 - Conditional Orders & Screening Criteria
Kenneth J. Gruneisen, Founder and Contributing Writer, www.CANSLIM.net
November 2, 2009
Due to work reasons, I cannot trade during the day. Is there an online trading service that will accept a buy order under the following conditions: a buy order, placed in advance, which will buy a stock at its pivot point or higher within its proper buy range and only if it hits its +50% above average volume threshold? It seems the appropriate buy order is a stop order that once the stock price reaches or surpasses the pivot point the stop order becomes a market order.
How do stocks qualify for your leaders list of high ranked stocks? Most stocks shown in the second section of Today's Breakout Screen do not qualify/fundamentals are below the CANSLIM investment guidelines. I am confused. Please comment. Thank you!.
November 4, 2009
I do not have any specific recommendations I can give, as I am not aware of any firms offering to accept and execute conditional orders of that nature - "buy stop" orders based on a combination of both price and volume. I believe there may likely be a few trading system software packages available that are designed to work in conjunction with certain online trading firms' platforms. In such cases, one would need to have their account held at a compatible brokerage firm, and then pay additional fees for add-on software/services including a real-time data feed. Then, after learning how to configure it to work with your brokerage account and getting familiar with how to actually use it, you would need to leave it up and running all day on a computer so that it would (hopefully) work as desired. There could be several pitfalls to that approach, and costs might be viewed as high by some, however that depends on the investment amount at stake..
Concerning your other question on how stocks qualify for the Leaders List of high-ranked stocks, the list has been updated for the past 13 years using a fairly simple mechanical export of stocks ranked 80+ for Earnings Per Share and Relative Strength as a starting point, then we trim that list down by removing certain thinly traded stocks and those that are greatly off their 52-week highs percentage-wise even though they have high RS ranks.
We believe the companies in the lower portion of the mid-day report are not as worthy of action as the issues specifically listed on the top portion of the report (which may be color coded yellow or green). When there are no stocks in the top portion, you should not be confused. As you have observed, stocks shown in the second section of Today's Breakout Screen are specifically noted because their fundamentals or their technicals are below the investment system guidelines. Many members find value in the notes our experts provide on these issues so they can become more aware of what to look for and what to look out for in their day-to-day investing.
If you have any other questions or concerns related to CANSLIM.net services please do not hesitate to contact me directly or write in using the inquiry form again
Kenneth J. Gruneisen
Founder & Contributing Writer for CANSLIM.net
Kenneth J. Gruneisen, Founder and Contributing Writer, www.CANSLIM.net :
Kenneth J. Gruneisen has successfully completed the CAN SLIM® Certification Program. Mr. Gruneisen became a Registered Representative in 1987 and his career includes experience offering personalized assistance to investors with more than a decade of experience as a Registered Principal managing a branch office.
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