William J. O'Neil

SECRET TIP–The first step in learning how to pick big stock market winners is to examine leaders of the past, like those you’re about to see, to learn the characteristics of the most successful stocks. From these observations, you will be able to recognize the types of price patterns these stocks developed just before their spectacular price advances.

Other key factors you’ll discover include what the quarterly earnings of these companies were at the time, what the annual earnings histories of these organizations had been in the prior three years, what amount of trading volume was present, what degree of relative strength there was in the prices of the stocks before their enormous success, and how many shares of common stock were outstanding in the capitalization of each company.

You can definitely learn how to pick winners in the stock market, and you can become part owner of the best companies in the world. So, let’s get started right now. Here’s a sneak preview of CAN SLIM:

C Current Quarterly Earnings per Share: The Higher, the Better
A Annual Earnings Increases: Look for Significant Growth
N New Products, New Management, New Highs: Buying at the Right Time
S Supply and Demand: Shares Outstanding Plus Big Volume Demand
L Leader or Laggard: Which Is Your Stock?
I Institutional Sponsorship: Follow the Leaders
M Market Direction: How to Determine It
Please begin immediately with Chapter 1. Go for it. You can do it.

the distinguished economists Milton and Rose Friedman devoted the first 28 pages of their excellent book Free to Choose to the power of market facts and the unique ability of prices to provide important and accurate information to decision makers.

Chart patterns, or “bases,” are simply areas of price correction and consolidation after an earlier price advance. Most of them (80% to 90%) are created and formed as a result of corrections in the general market.

The skill you need to learn in order to analyze these bases is how to diagnose whether the price and volume movements are normal or abnormal. Do they signal strength or weakness?

Your objective isn’t to buy at the cheapest price or near the low, but to begin buying at exactly the right time, when your chances for success are greatest.

You want a stock to prove its strength to you before you invest in it.

you buy at more than 5% to 10% past the precise buy point, you are buying late and will more than likely get caught in the next price correction.