The CANSLIM Investor

10 Bad Picks in a Row

2010-01-15T18:06:00.000-08:00

Another good one from Investors Quotes Daily. Very appropriate for me as the last week of sporadic market movement have left me with the some losses.

10 Bad Picks in a Row

"I once had a string of 10 stocks I cut losses on. But the very next one emerged just as the market came out of a correction (downtrend) and more than tripled in price. I've often thought: "What would've happened if I had gotten discouraged and quit because the previous 10 stocks I bought didn't work?"

William J. O'Neil, 24 Essential Lessons for Investment Success , Mcgraw-Hill, 2000. p 3.

A = Annual Earnings Increase

2010-01-14T15:58:00.001-08:00

Continuing with the CANSLIM series lets talk about what the A in CANSLIM stands for.

A = Annual Earnings Increase

Looking just at quarterly earnings can be misleading as companies who have only had a few good quarters will be selected. To screen out these companies CANSLIM factors in annual earnings. To be a CANSLIM growth stock a company must have an annual earnings increase of at least 25% . The company should have increasing earnings of at least three years of to be considered. This criteria weeds out companies who have short term success but may flutter out soon.

To learn more about CANSLIM check out one of the following resources.

- My Review of the CANSLIM Method
- Investors Quotes Daily. A free Daily quote from CANSLIM creator William J. O'Neil.
- William J. O'Neil's book How to Make Money in Stocks. I've read it myself and I highly reccommend it.

Investing using the Relative Price Strength Rating

2010-01-13T16:09:00.000-08:00

I got a nice quote by William J. O'Neil from this web service called Investors Quotes Daily. They send out a free daily quote from him. I highly recommend it. It's a great way to stay inspired.

Good Stocks are like a Pitchers Fastball

"I don't like to buy stocks with a Relative Price Strength ratings less than 80. In fact the really big moneymakers generally have RS ratings of 90 or higher just before they break out of their first or second base structure. The RS rating of a potential winning stock should be in the same league as its pitchers fastball. The average big-league fastball is clocked at 86 mph, and the pitchers throw "heat" in the 90s."

William J. O'Neil, How to Make Money in Stocks, Mcgraw-Hill, 2009.

Finding Stocks with the Greatest Percentage Invcrease in Volume

2010-01-13T16:04:00.000-08:00

Interested in finding stocks with the greatest percentage increase in volume? Check out this article on trading using a stocks volume. It recommends some good ways to monitor a stocks volume changes and talks about the implications of them.

Trading using a Stocks Volume

Learn How to Read Stock Charts

2010-01-07T08:41:00.000-08:00

I found a great artilce on reading stock charts. Gives the basics of all of the commono chart patterns. Cup with handle, double bottom, flat base, square box, high tight flag and some others. Here is the link.

Basics of Stock Chart Patterns

Free Investing Advice

2010-01-07T08:35:00.000-08:00

Ever heard of William J. O'Neil? He is the author of the book How to Make Money in Stocks and founder of the newspaper Investors Business Daily . He is a highly successful investor and entrepreneur. The web site Investors Quotes Daily will send you a free daily quote from him. It's a great way to learn from one of the best and stay encouraged in your pursuit of being a successful investor. Check it out.

Investors Quotes Daily

CANSLIM Criteria: C - The importance of quarterly earnings

2010-01-07T08:27:00.000-08:00

With all my talk about the CANSLIM method I thought it would be a good idea to write about each of its criteria to give you guys a general idea of how it works. Here is the first of 7 entries.

The method emphasizes earnings as they are a clear judge of a company’s performance. A company must have quarterly earnings at least 25% higher than the same quarter last year. You want to see quarterly earnings increases in the past few quarters as well, not just the most recent quarter. Then you want to look forward to future earnings You do this by looking at analyst’s projections for the next quarter. These should be up 25%. Then last you want to see an increase in the rate of quarterly earnings increases. For instance a 30% increase 3 quarters ago, a 40% increase to quarters ago and a 50% increase in the current quarter.

For a more in depth look at the CANSLIM method check out a review on it here.

How to Pick Stocks with CANSLIM

Investors Business Daily Review

2010-01-07T08:23:00.000-08:00

I am a subscriber to Investors Business Daily and I am proud to say it. It is a great paper that has brought me much success. For anyone looking to be successful as an investor I would highly recommend reading it. It will pay for the cost of the annual subscription in a few weeks. If you need more information check out this review article that talks about some of its key features.

Investors Business Daily Review

I am a CANSLIM Investor

2010-01-07T08:20:00.000-08:00

As you can tell from my blog title I am a CANSLIM investor. I have found it to be a great method that anyone can be successful. This is evidence by myself as I came in with very little investing knowledge. I found an article that gives a good review and general explanation of the CANSLIM method. Take a look.

How to Pick Stocks with CANSLIM

How volume can be used as an indicator for Trading

2010-01-07T08:05:00.000-08:00

I found an interesting article on using trading volume as a trading indicator. It shows you how to use volume to determine the supply and demand for a stock. You can then use that to predict coming price movements.

Trading using Stock Volume