How to Make Dollar in Stocks Trading

Alfred Williams 9:37 AM 0

How to Make Money in Stocks Third Edition of the Investing Classic Completely Updated and Revised for Today's Turbulent Markets When it was first published in 1988, How to Make Money in Stocks, the international best seller by Investor's Business Daily founder William J. O'Neil, provided the first in depth explanation of his innovative CAN SLIM™ investing method. Now, with the stock market producing continuing uncertainty and damaging investor confidence, comes How to Make Money in Stocks: A Winning System in Good Times or Bad (McGraw-Hill Trade; June; Paperback: $12.95), a completely updated and enhanced edition with proven strategies that get investors into--and out of--the market at the right time. O'Neil's CAN SLIM™ investment modeling system of buy and sell rules is based on an extensive analysis of the greatest stock market winners each year for the last half-century and presents a straight-forward process for minimizing risk, maximizing return and finding stocks that are poised to perform. The book details this method, which is based on proven, time-tested indicators such as quarterly earnings, market capitalization, and daily indexes. CAN SLIM™ is the acronym for the seven common characteristics of winning stocks: Current quarterly earnings per share Annual earnings increases New products Supply and demand Leader or laggard Institutional sponsorship Market direction In an independent survey published annually, the American Association of Individual Investors (AAII) compared the CAN SLIM™ system to other well-known methods for selecting stocks--such as that of Warren Buffett, Peter Lynch and many others--for the bull market years of 1998 and 1999 as well as the bear market of 2000. AAII found that Mr. O'Neil's CAN SLIM™ method had the best and most consistent performance each year. Here are the results: 1998: +28.2% returns, 1999; +36.6%; 2000: +30.2%. The book discusses how O'Neil based his system on studies of the common characteristics (fundamental and market action variables) of the greatest stock market winners before they made major price moves, which gives investors insights into stocks with potential for the best appreciation. It also shows the common performance characteristics of stocks topping out and moving downward, which gives investors rules when to sell and take profits. The continual confirmation of how stocks become winners - and those elements that need to be in place - have proven to work, cycle after cycle. The following are some of the key variables taken into account: __ The quarterly earnings of these companies prior to their major price moves __ What the annual earnings histories had been for the prior three years __ What amount of trading volume was present __ What degree of relative price strength occurred in the price of the stock before its enormous success __ How many shares of common stocks were outstanding in the capitalization of each company, This new edition of How to Make Money in Stocks, an official CAN SLIM™ investment research tool, encapsulates O'Neil's more than 40 years of experience, study, and analysis of the market and provides guidance to questions like: __ How do I know which stocks to buy? __ And if I hit a good buy, should I buy more? And when? __ Should I buy a lot of a low-priced stock, or a little of a high priced stock? __ How do I know when to sell? When should I take profits? __ What areas of investing will help me most now that the markets appear to be trickier than ever? Stocks, gold, mutual funds? __ Is it really wise to invest in stocks after watching them fall so low, especially the tech stocks? In the book, O'Neil also addresses some of the key misconceptions and mistakes investors make, such as: __ Believing the ‘buy low, sell high’ mantra - and it's a trap O’Neil proves...He writes how historical studies prove stocks making new highs tend to go higher, while stocks making new lows tend to go lower. People are afraid to buy a stock making a new high. O'Neil makes it clear that if other variables are in place, this can be the launching pad for a great stock. __ Buying stocks on their way down in price...everyone wants a bargain. O'Neil illustrates why this is another bad trap for investors. __ Buying on tips, rumors, stories or advisory services... The last few years have also proved that 'experts' appearing on TV didn't help investors, and in some cases, hurt them with opinions, advice such as buying tech stocks on the way down. ABOUT THE AUTHOR WILLIAM J. O'NEIL is one of Wall Street's most seasoned and successful investing veterans. At age 30, he bought his own seat on the Big Board with profits made in the stock market and founded William J. O'Neil + Co., Incorporated, a leading institutional investment research organization based in Los Angeles. The firm's current clients are more than 600 of the top institutional firms worldwide. Mr. O'Neil is also the chairman and founder of Investor's Business Daily and author of the national best seller, 24 Essential Lessons for Investment Success. see: http://udonnaanigbo.blogspot.com