How to Make Money in Stocks by William J. O’Neil is a comprehensive guide to investing in the stock market. The book provides readers with a step-by-step approach to selecting stocks that have the potential to deliver significant returns. The book is based on the author’s own experiences and insights gained from his years of trading and investing in the stock market.
Chapter 1: Introduction to the CANSLIM Investment Strategy
The book introduces the CANSLIM investment strategy, which is a proven approach to selecting stocks that have the potential to deliver significant returns. The CANSLIM strategy is based on seven key criteria that investors should look for when selecting stocks. These criteria include:
- C – Current earnings
- A – Annual earnings growth
- N – New high in price
- S – Supply and demand
- L – Leader or laggard
- I – Institutional ownership
- M – Market direction
The book provides readers with a detailed explanation of each criterion and how to use them to identify stocks that have the potential to deliver significant returns.
Chapter 2: How to Use the CANSLIM Strategy to Select StocksThe book provides readers with a step-by-step approach to using the CANSLIM strategy to select stocks. The author recommends that investors start by identifying industries that are experiencing growth and then looking for stocks within those industries that meet the seven key criteria of the CANSLIM strategy.
The book also provides readers with a list of questions to ask when evaluating a stock, including:
- Is the company’s earnings growth rate accelerating?
- Is the company’s earnings growth rate higher than the industry average?
- Is the company’s stock price moving higher?
- Is the stock selling above its 50-day moving average?
- Is the stock selling above its 200-day moving average?
- Is the stock selling above its high for the year?
- Is the stock selling above its 52-week high?
- Is the stock selling above its 38.2% Fibonacci retracement level?
- Is the stock selling above its 50% Fibonacci retracement level?
- Is the stock selling above its 61.8% Fibonacci retracement level?
The book also provides readers with a list of stocks to watch, which are stocks that meet the seven key criteria of the CANSLIM strategy and are in industries that are experiencing growth.
Chapter 3: How to Use Charts to Identify Buying and Selling OpportunitiesThe book provides readers with an introduction to technical analysis and how to use charts to identify buying and selling opportunities. The author recommends that investors use daily charts to identify stocks that are breaking out to new highs and weekly charts to identify longer-term trends.
The book also provides readers with a list of technical indicators to use when evaluating a stock, including:
- Moving averages
- Relative strength index (RSI)
- Momentum
- Bollinger Bands
- On-balance volume (OBV)
- Volume
The book also provides readers with a list of stocks to watch, which are stocks that are breaking out to new highs and have positive momentum indicators.
Chapter 4: How to Use Fundamentals to Evaluate Stocks
The book provides readers with an introduction to fundamental analysis and how to use financial ratios to evaluate stocks. The author recommends that investors use a combination of both technical and fundamental analysis to identify stocks that have the potential to deliver significant returns.
The book also provides readers with a list of financial ratios to use when evaluating a stock, including:
- Price-to-earnings (P/E) ratio
- Price-to-sales (P/S) ratio
- Price-to-book (P/B) ratio
- Dividend yield
- Earnings growth
- Debt-to-equity ratio
- Current ratio
- Quick ratio
- Inventory turnover
- Asset turnover
- Return on equity (ROE)
- Return on assets (ROA)
- Return on capital (ROC)
The book also provides readers with a list of stocks to watch, which are stocks that have strong fundamentals and are undervalued based on their financial ratios.
Conclusion
How to Make Money in Stocks by William J. O’Neil is a comprehensive guide to investing in the stock market. The book provides readers with a step-by-step approach to selecting stocks that have the potential to deliver significant returns. The book is based on the author’s own experiences and insights gained from his years of trading and investing in the stock market.
The book introduces the CANSLIM investment strategy, which is a proven approach to selecting stocks that have the potential to deliver significant returns. The CANSLIM strategy is based on seven key criteria that investors should look for when selecting stocks. These criteria include:
- C – Current earnings
- A – Annual earnings growth
- N – New high in price
- S – Supply and demand
- L – Leader or laggard
- I – Institutional ownership
- M – Market direction
The book provides readers with a detailed explanation of each criterion and how to use them to identify stocks that have the potential to deliver significant returns.
The book provides readers with a step-by-step approach to using the CANSLIM strategy to select stocks. The author recommends that investors start by identifying industries that are experiencing growth and then looking for stocks within those industries that meet the seven key criteria of the CANSLIM strategy.
The book also provides readers with a list of questions to ask when evaluating a stock, including:
- Is the company’s earnings growth rate accelerating?
- Is the company’s earnings growth rate higher than the industry average?
- Is the company’s stock price moving higher?
- Is the stock selling above its 50-day moving average?
- Is the stock selling above its 200-day moving average?
- Is the stock selling above its high for the year?
- Is the stock selling above its 52-week high?
- Is the stock selling above its 38.2% Fibonacci retracement level?
- Is
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