Archive for the 'Breakout trading' Category
October 2nd, 2006
Interview: The Growth Stock Report’s Dan Beighley
GrowthProfile: The Growth Stock Report’s editor Dan Beighley talks about how he became a CANSLIM user, his profit-taking strategies and …
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September 8th, 2006
10 explosive CANSLIM rockets
Here are 10 rocket stocks found after running our modified CANSLIM screen over US stocks.
The …
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August 7th, 2006
This book will make you money
BOOK REVIEW: “This book helped me make money” is perhaps the best tribute an investment book could get. It’s a …
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August 2nd, 2006
15 CANSLIM stocks to watch
Last week Global Growth Investor looked at how to modify William O’Neil’s CANSLIM system to create an easy-to-use stock screen. …
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July 20th, 2006
Create a CAN SLIM stock screen
Many momentum and aggressive growth investors start with William O’Neil’s CAN SLIM method. Here’s how (and why) to simplify the …
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June 25th, 2006
Cramer: can’t knock CAN SLIM
This profile of William O’Neil came out a few months ago, but it’s an interesting insight into the founder …
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June 20th, 2006
Don’t give up on growth
For many growth investors high EPS growth forecasts are an important part of their method. So it can be a …
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June 15th, 2006
Growth guru (perhaps) picks
John Reese at Forbes has picked a number of stocks that gurus might want to own. He thinks William …
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Breakout trading Explained
CAN SLIM is the method developed by William O’Neil, made famous by his best-selling book ‘How to Make Money in Stocks’ and daily finance newspaper Investor’s Business Daily. CAN SLIM breaks down characteristics of winning growth stocks into seven categories:
C - Current earnings growth should be high and accelerating
A - Annual earnings growth should be consistently above average for at least the past three years
N - Companies should have new products, services or management, and be hitting new 52-week highs
S - Big stock moves come from high demand for small amounts of stock, so pick small caps with few outstanding shares
L - Winners tend to continue to be winners. So buy stocks with high relative strength that have been outperforming peers
I - Mutual funds have the big dollars these days. Choose stocks that are attracting interest from the better-performing mutual funds.
M - Most stocks fall in a bear market. Learn how to recognize when one is around the corner and go to cash. Buying growth stocks doesn’t work in a bear market.
There is a lot of overlap between CAN SLIM and aggressive growth investing. But O’Neil has popularized the methods through his newspaper and books, and it continues to be used by thousands of private investors. Well known CAN SLIM investors include Market Wizard David Ryan.
