A follow-through day is identified when either the Nasdaq or the S&P 500 index rises a minimum of 1.7% on volume that is greater than the prior day's volume. This typically occurs between the fourth and seventh day of a rally attempt following a market correction.
This video explains William O'Neil's CANSLIM investing strategy, presented by Ross Haber, who worked under O'Neil. The presentation covers the seven key traits of successful stocks according to CANSLIM, emphasizing risk management, identifying market trends, and utilizing both fundamental and technical analysis to select leading growth stocks. The video also includes case studies and a demonstration of stock screening.
Ross Haber emphasizes managing stop-losses by keeping them at a maximum of 7-8% below the entry point on a closing basis, especially for stocks breaking out of an early stage base. He also suggests that for more established positions or when adding to a core holding, a tighter stop-loss might be used, potentially linked to the stock respecting its moving averages (like the 10-day or 21-day). The core principle is to know your stop-loss and why before entering a trade, and to enforce it to protect capital and emotional well-being.
