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How to Make Money in Stocks: A Winning System in Good Times or Bad

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The third edition of a practical rule book for becoming an investment professional. It offers guidance for those who want to make smart investments - even if they've never owned stocks before. This updated edition includes new concepts, improved chart graphics and new research tools. Key issues include: making money reading the daily financial pages; picking the best indus The third edition of a practical rule book for becoming an investment professional. It offers guidance for those who want to make smart investments - even if they've never owned stocks before. This updated edition includes new concepts, improved chart graphics and new research tools. Key issues include: making money reading the daily financial pages; picking the best industry groups in the market; reading charts to improve stock selection and timing; reducing losses and mistakes; and turning a profit from reading and analyzing the news.


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The third edition of a practical rule book for becoming an investment professional. It offers guidance for those who want to make smart investments - even if they've never owned stocks before. This updated edition includes new concepts, improved chart graphics and new research tools. Key issues include: making money reading the daily financial pages; picking the best indus The third edition of a practical rule book for becoming an investment professional. It offers guidance for those who want to make smart investments - even if they've never owned stocks before. This updated edition includes new concepts, improved chart graphics and new research tools. Key issues include: making money reading the daily financial pages; picking the best industry groups in the market; reading charts to improve stock selection and timing; reducing losses and mistakes; and turning a profit from reading and analyzing the news.

30 review for How to Make Money in Stocks: A Winning System in Good Times or Bad

  1. 4 out of 5

    Jim

    Horrible book filled with useless garbage and nonsense. Basically, a get rich quick by using my subscribing to my website scam. Author's technical investing strategies are presented in a very non-rigorous and non-compelling manner. He uses examples but any idiot can cherry pick a few examples to prove a point. That does not make a convincing argument. I could belabor my point with more examples but instead I recommend 2 much more insightful and informative books on investing: The Warren Buffet W Horrible book filled with useless garbage and nonsense. Basically, a get rich quick by using my subscribing to my website scam. Author's technical investing strategies are presented in a very non-rigorous and non-compelling manner. He uses examples but any idiot can cherry pick a few examples to prove a point. That does not make a convincing argument. I could belabor my point with more examples but instead I recommend 2 much more insightful and informative books on investing: The Warren Buffet Way or The Little Book of Common Sense Investing.

  2. 5 out of 5

    Matt

    William O'Neil's book made me want to give up fantasy sports and take up investing. It seems like the time I spend reviewing an athlete's past performance and projecting future ones could be better spent on researching stocks, something that could actually make me money and possibly provide a similar stimulation. How to Make Money in Stocks teaches readers how to identify good companies that are about to become great and then how to determine if and when to buy their stock. The mnemonic CAN SLIM William O'Neil's book made me want to give up fantasy sports and take up investing. It seems like the time I spend reviewing an athlete's past performance and projecting future ones could be better spent on researching stocks, something that could actually make me money and possibly provide a similar stimulation. How to Make Money in Stocks teaches readers how to identify good companies that are about to become great and then how to determine if and when to buy their stock. The mnemonic CAN SLIM describes how he identifies fundamentally sound companies. C=Current earnings, A=annual earnings, N=new product, S=Supply and demand, L=leader or laggard of their sector, I=Institutional sponsorship, M=how the stock is priced relative to market indices. The mnemonic seemed like a gimmick targeted at suckers who paid to learn about stocks in a Holiday Inn ball room, but the content of the mnemonic seemed sound. The portion of the book I found most interesting was learning how to interpret stock charts. O'Neil recommends buying stocks after they have formed a good base price. The base refers to the shape a stock's historical price has made in recent weeks. There are a few shapes he recommends and at first these shapes seemed about as arbitrary as picking a loose grouping of stars and calling it a constellation, but after further research it seems like there is some truth to this advice. I can definitely look at the chart of a stock that went up and identify the base pattern signalling its rise. The real question is whether I can identify a base pattern without the benefit of hind sight. If so, goodbye fantasy sports. If not, fantasy sports, I'll never stray again.

  3. 5 out of 5

    Curtis

    I've read a few investment books, and this is the most comprehensive system I've found for determining when EXACTLY to enter and exit positions. The consistent, unemotional method that O'Neil provides has helped me immensely in thinking about and executing my investing strategies. I've read a few investment books, and this is the most comprehensive system I've found for determining when EXACTLY to enter and exit positions. The consistent, unemotional method that O'Neil provides has helped me immensely in thinking about and executing my investing strategies.

  4. 4 out of 5

    Bianca A.

    Originally published in 1988 and then republished in 2008. Entrepreneur, stockbroker and writer William J. O'Neil attempts to give tips to rookies about stocks. Although better written than most stock literature, it's still just a big tease with the goal of self-advertisement that piggy-backs on empty promises, but may succeed just enough to keep you coming back for more (of his books or other genre books). It's just the "start" that is meant to get you interested in the market and possibly in t Originally published in 1988 and then republished in 2008. Entrepreneur, stockbroker and writer William J. O'Neil attempts to give tips to rookies about stocks. Although better written than most stock literature, it's still just a big tease with the goal of self-advertisement that piggy-backs on empty promises, but may succeed just enough to keep you coming back for more (of his books or other genre books). It's just the "start" that is meant to get you interested in the market and possibly in the job. Stock market trade remains something that only people with a lot of money can generate profit out of and regular folks like you and I should not dab into it at novice level by ourselves. If you've got money to invest and you're a beginner, go to a stock broker. If you want to be a stock broker, go to college. The financial and economics sector is vast and intricate and difficult to master and honestly if you're an entrepreneur busy running your business you do NOT have time to be continually informed on your own about the stock market changes. One book or 10 books on the "stock exchange" by some "gurus" is not going to do anything for you. The market is tough to predict, if at all possible, as many factors out of our control of foresight are at the base of it (unless you are a groomed expert, and even then who knows if you'd struggle or not).

  5. 5 out of 5

    erjan avid reader

    i swept through this book and got a detailed overview of it. It is for long term investing - 6-18 months. The learning rate using canslim is very low, because you have to spend weeks, months before your forecast proves wrong or right! Right now, this is not what i want, so i close this book, after reading most important parts: common mistakes and cup and handle pattern. About 40% of this book is full of charts, and you will spend considerable amount of time reading them. overall, the book advertise i swept through this book and got a detailed overview of it. It is for long term investing - 6-18 months. The learning rate using canslim is very low, because you have to spend weeks, months before your forecast proves wrong or right! Right now, this is not what i want, so i close this book, after reading most important parts: common mistakes and cup and handle pattern. About 40% of this book is full of charts, and you will spend considerable amount of time reading them. overall, the book advertises its own newsletter service, stating you should be independent but still listen to the guru. As one reviewer on amazon stated:" you would have to put in lot of work & time to figure out if it works or not"

  6. 4 out of 5

    Yanjia Li

    Overall a good introduction to O'Neil's trading system. The essence of this system is to combine value analysis together with supply demand analysis (using chart as a proxy). Then, after sufficient research, one should only hold a few winning stocks and keep an eye on the general market. This book shows a detailed system from micro perspective, but in reality, it could take a long time for the reader to actually excel at it I believe because there're so many ambiguity and edge-cases around so ma Overall a good introduction to O'Neil's trading system. The essence of this system is to combine value analysis together with supply demand analysis (using chart as a proxy). Then, after sufficient research, one should only hold a few winning stocks and keep an eye on the general market. This book shows a detailed system from micro perspective, but in reality, it could take a long time for the reader to actually excel at it I believe because there're so many ambiguity and edge-cases around so many rules. But I think there're few key ideas behind this system: 1. Treat trading like a business, so you'll want to cut the worst performing ones and hold the best ones 2. Pick stocks based on the growth of a company, such as earning growth, product growth etc 3. Understand that the key to win is to lose less than others, so you need to cut loss strictly at 8% (absolute loss), but allow the winner to grow at least 20%, which is 3:1 ratio. 4. And most importantly, respect and follow the market, do not fight against it. I have to say O'Neil isn't a good writer. The book could be organized with better structure. Instead, O'Neil poured lots of random thoughts in each chapters which makes it not quite consistent. And he tried too hard to sell his IBD stuff. He could totally remove those IBD things from each chapter and have a new chapter to give hands-on instructions for those who are interested. I do like the Q&A section where he explained his thoughts about lots of common topics in investment, such as short selling, options writing etc. ----------------- Some spoilers below: The CANSLIM principles are: C: Current quarterly earning growth should be high. You should only look at quarter to quarter increase to avoid seasonality. And the growth rate should be at least 20%. You could check consensus estimates to confirm your idea. But it's better to make sure the sales growth is at least 25% too. Similarly, if the earning growth slowed down significantly for two quarters, it's also a sign of weakness. A: Annual earning should increase steadily for at least two years before the break out too. Also, pay attention to ROE and cashflow per share. The author believe everything in the market sells for about what it's worth at the time based on the law of supply and demand. So there's no such "cheap" stock to him. N: New product, services or management from the company. Basically, there should be something new to drive the break out. S: Supply and demand determines the price. It's a good sign for a small to mid size company to buy back stocks. And lower debt ratio is also good. One way to show the S&D is by checking the volume. If volume dry up when a stock pull back in price, it means there's no further selling pressure. And when price going up, you'll want to see volume up because it means some institutions start to buy too. L: Leader is far better than lagger. Still, consistent with author's idea about chasing the best stocks, those lead their industries and are number one in their field. People buy lagger with sympathy but it never catch up. So learn to sell worst performer and keep the best a little longer. I: Institutions are the key buyers of a growing stock. Buy only those stocks that have at least a few institutional sponsors with better-than-average recent performance and have added institutional owners in recent quarters. M: Market direction is more important that all rules above. In bear market, stocks usually open strong and close weak. In bull market, stocks usually open weak and close strong. The general market averages need to be checked every day. The use of limit order is not recommended because you want to move fast. And the most important two topics: To detect a market top, keep a close eye on those composites and indices. On one of the days in uptrend, volume will increase but the price increase becomes smaller, which is "heavy volume without further price progress up". The average may close down for the day, making the distribution easy to see. After four or five days of definite distribution over any span of four or fives weeks, the market will almost always turn down. After the first day's rebound, the second day will open strongly but suddenly turn down near the end of the session. To recognize the market bottom: A rally attempt begins when a major market average closes higher after a decline that happened either in the day or during previous session. Starting on the fourth day of the attempted rally, look for one of the major average to follow through with a booming gain on heavier volume than the day before. When a bear market bottoms, it frequently pulls back and settles above or near the lows made during the previous few weeks. Remember, no new bull market has ever started without a strong price and volume through confirmation.

  7. 4 out of 5

    Raphael Bernardo

    I mostly read biographies and other non fiction. Even so this was a hard read for me because it was packed with theories and data or history to back it up. Maybe a few personal stories here and there(I read those faster). I had this book in my house for a while but didn't realize it was a classic until I read Michael Lewis's The Big Short, and found one of the people who saw the crash coming(and made 100+million off of it) had been using this method as a guide along with other sets of strategies I mostly read biographies and other non fiction. Even so this was a hard read for me because it was packed with theories and data or history to back it up. Maybe a few personal stories here and there(I read those faster). I had this book in my house for a while but didn't realize it was a classic until I read Michael Lewis's The Big Short, and found one of the people who saw the crash coming(and made 100+million off of it) had been using this method as a guide along with other sets of strategies, but this was one of them. Knowing that helped a lot because halfway through I started to question if this book is just one big sales pitch. After reading an entire chapter dedicated to promoting their product I started to notice every other page has their product mentioned as being used to make a critical decisions. I just finished, so I'm still not sure what I think of the book. Their method seems way too perfect. I couldn't find much information about their Company or William J. O'Niel. He has a net worth of $100 million but most of his Wikipedia is about his products. Also all the people in the testimonials who made money mentioned they made it in between 1996-2000. Anybody with a brain could have made money during that time. A lot of the methods in the book contradicts everything everybody says (ex. Doing things the Warren Buffet Way and Buying a good company like Coca Cola to keep for 10 years...everybody I've met cites Buffet the way every business person I've met says 'like Steve Jobs' after every sentence) and that made it very attractive. I really want to believe what I read works, but I might have to buy a subscription to their database to do it in the best way possible. I'm skeptical for that reason. I'm giving it 4 stars because it's a classic, William J. O'Neil includes a great story about how he made millions by betting everything he owned on margin multiple times, and besides the sales pitch it is a pretty good book. I'm not a big investor but I have heard money managers say a lot facts he mentioned as doctrine...which may or may not be a good thing.

  8. 5 out of 5

    InvestingByTheBooks.com

    William O ́Neil was born in 1933 and in 1963 he founded the company that bears his name. His company developed the first computerized daily securities database and he is still very active promoting his services of which this book probably is his bestselling tool. Based upon his research studying the track record of past investor legends and what the best performing stocks have in common, he developed his investment strategy, called CAN SLIM. This focuses on buying stocks that are performing rela William O ́Neil was born in 1933 and in 1963 he founded the company that bears his name. His company developed the first computerized daily securities database and he is still very active promoting his services of which this book probably is his bestselling tool. Based upon his research studying the track record of past investor legends and what the best performing stocks have in common, he developed his investment strategy, called CAN SLIM. This focuses on buying stocks that are performing relatively strongly as well as having a fundamental momentum. The first version of the book was published in 1988, and since then I have had the pleasure of reading the following four editions of this book. They don’t differ much from the original but have updated comments. O ́Neil’s key message is to focus on momentum, and change. Instead of fearing or having disbelief in stocks that trade on 25-50 times earnings and making new highs, he advocates them using his CAN SLIM system. I think every value investor should read this book. It would prevent them from buying apparently cheap value traps in bad industries etc. The book is divided in 3 parts. In the first part it’s all about his winning system, CAN SLIM. The second part is called, “be smart from the start” and the third part is called “investing like a professional”. It’s written in a very easy language, but to me it’s a bit too much of a commercial. The negatives with this book are that’s sometimes I get the feeling that the book is written with the sole purpose of promoting O’Neill’s newspaper and brokerage business. Another negative is that very rarely are there any issues or problems with his strategy. But overall the positive clearly outweighs the negatives. The CAN SLIM method is an easy to understand framework to give you necessary focus on the dynamics of the stock, and its fundamentals. It focuses you on Current and Annual earnings growth as well as what is driving that, what is the New; products, management etc. After the fundamentals, it also looks at the chart, and some technical factors, Supply and demand for the stocks, if a stock is a Leader/Laggard in the market, in its industry, does it have Institutional sponsorship and finally in what direction is the overall Market heading. Compared to other authors that advocate a more dynamic approach to stocks like Jesse Livermore, Edvin Lefewre, or pure technical ones like Martin Pring, this actually brings the fundamentals to the forefront, trying to learn from previous success stories in the stock market, and to see to what extent these new ideas qualify as a potential ten-bagger. In the early 90’s I found myself too often buying stocks that had fallen out of favor and were looking cheap, only to learn they could get cheaper and also that there could be good reason for the cheapness. Bad fundamentals often turned into even worse fundamentals, and maybe even structural issues. After reading this book I got a more focused on what drives stocks, positive news (for big moves). I think all value investors, like me, should read this book to focus to a larger extent on growth and opportunities. Or at the very least avoid cheap stocks in dying industries, were often a “new technology growth” company are changing the dynamics of the industry. Think for example about Amazon vs companies selling electronics/books etc. As a final note, O ́Neil’s favourite book is Gerald Loeb’s, The Battle for Investment Survival. This is another book to recommend if you need a more dynamic approach to your investing.

  9. 4 out of 5

    Wayne

    Overall I think that the author has some good information that he is strying to get across, but unfortunately I felt that his writing and education style was poor. For a subject that I generally find very interesting, it was a dry book that I was definitely ready to put down once I reached the end. This is more of a reflection of his presentation of the information rather than is message.

  10. 4 out of 5

    Katie O'Bryan

    A momentum investor, watch the charts, look for signs of heavy & tightly traded institutional interest for 4 to 5 weeks, cup & handle patterns, cut losses at 8%, & only work with the absolute best in terms of fundamentals.

  11. 5 out of 5

    Marco den Ouden

    See my review here: How to Make Money in Stocks See my review here: How to Make Money in Stocks

  12. 5 out of 5

    Huy

    Instead of reading this book, you can find a broker. He/she can tell you the same thing. More informative & trendy, less about subcribing to the xyz products.

  13. 5 out of 5

    Ash Turki

    this book is more about speculating but not investing all the methods explained are good in theory not in practice for instance talkin about eps .. theres so many different kinds of eps comming from selling thier assets or things like that would be misjudged by new or unexperienced investors, moreover, talking about techinical analysis, why would the writer attack everybody who dont believe in technical analysis, this is a very weak way to convince the readers by technical analysis besides techn this book is more about speculating but not investing all the methods explained are good in theory not in practice for instance talkin about eps .. theres so many different kinds of eps comming from selling thier assets or things like that would be misjudged by new or unexperienced investors, moreover, talking about techinical analysis, why would the writer attack everybody who dont believe in technical analysis, this is a very weak way to convince the readers by technical analysis besides technical are for speculators .. i wouldnt give this book more than 2 stars, its name is bigger than its content

  14. 4 out of 5

    Trần Lệ Mẫn

    This book is to provide you about stock market and how to make money from it. Although I started reading when I didn't have much knowledge and experience about even stock trading but also general investment but I have collected something useful in selecting a good company and how to trade in Stock Market. You can't be rich that you just work with 8 hour job at office, find the way how to let money work for you. Something you might got after completing this book: - How to choose a good stock base This book is to provide you about stock market and how to make money from it. Although I started reading when I didn't have much knowledge and experience about even stock trading but also general investment but I have collected something useful in selecting a good company and how to trade in Stock Market. You can't be rich that you just work with 8 hour job at office, find the way how to let money work for you. Something you might got after completing this book: - How to choose a good stock based on CAN SLIM standard - When you cut the loss - How many core stocks should hold - How to analyze the chart to decide when buy and sell. - ... It is a very good book for beginners.

  15. 4 out of 5

    JP

    The foundation of this classic by William O'Neil is his CANSLIM framework. He adds a richness of other ideas, including learning when to buy, when to sell, and how to develop your own style. The book is also filled with charts throughout, such that you sometimes need set it aside and return later with fresh eyes. The 4th edition includes data back into the 19th century all the way through the 2008 financial crisis. I'm glad I took the recommendation for this book made to me by a master technicia The foundation of this classic by William O'Neil is his CANSLIM framework. He adds a richness of other ideas, including learning when to buy, when to sell, and how to develop your own style. The book is also filled with charts throughout, such that you sometimes need set it aside and return later with fresh eyes. The 4th edition includes data back into the 19th century all the way through the 2008 financial crisis. I'm glad I took the recommendation for this book made to me by a master technician I work with.

  16. 5 out of 5

    Michael

    I traded the O'Neil CANSLIM method covered in this book for about 8% a month 10 years ago. Having daytraded for 2.5 years in recent years, I probably wouldn't be comfortable trading this method during the current economic situation. The CANSLIM is great for finding quality stocks. One could apply it to a shorter time frame than suggested in the book and still be trading a strong stock, which of course gives you greater chances for a successful trade. Sounds simple doesn't it. Ha! I traded the O'Neil CANSLIM method covered in this book for about 8% a month 10 years ago. Having daytraded for 2.5 years in recent years, I probably wouldn't be comfortable trading this method during the current economic situation. The CANSLIM is great for finding quality stocks. One could apply it to a shorter time frame than suggested in the book and still be trading a strong stock, which of course gives you greater chances for a successful trade. Sounds simple doesn't it. Ha!

  17. 4 out of 5

    A.J.

    I was able to develop a successful investment strategy 2 years ago, based on the invaluable information provided in this classic. The essence of the system here is to combine fundamental and technical analysis to scan out best performing stocks in the market which works out really well. On the contrary, honey is just in the beginning few chapters and remainder is filled with IBD advertising and ineffectual information.

  18. 4 out of 5

    Ron Livaudais

    A winning system for guaranteed success in the market! William O’Neill has done the heavy lifting. He has researched how the market really works based on history, has put a few rules together to help navigate one to success in the market which then helps you achieve confidence in your investing decisions.

  19. 4 out of 5

    Frederic Kerr

    This is a good primer on charts as an investment tool, but charts should never be the prime method by which people choose investments. O'Neil is the founder of the Investor's Business Daily newspaper, which focuses mostly on charts. This is a good primer on charts as an investment tool, but charts should never be the prime method by which people choose investments. O'Neil is the founder of the Investor's Business Daily newspaper, which focuses mostly on charts.

  20. 4 out of 5

    Ian Cassel

    I enjoyed the author's strategy. As a microcap investor in very illiquid securities I'm not that big of a proponent of technical analysis. I enjoyed his thoughts on selling, specifically keeping your losses small. I enjoyed the author's strategy. As a microcap investor in very illiquid securities I'm not that big of a proponent of technical analysis. I enjoyed his thoughts on selling, specifically keeping your losses small.

  21. 5 out of 5

    aldo

    seems still relevan to use in stock market including jakarta composite.CAN SLIM is powerful strategy for picking the best stock

  22. 5 out of 5

    Ardi Nursyamsu

    It's a good companion after you finished some of Market Wizard series. It's a good companion after you finished some of Market Wizard series.

  23. 5 out of 5

    Miranda Prather

    Awesome resource! I learned so much from reading this book. Still at the starting point, but ready to make better decisions. Thank you!

  24. 5 out of 5

    Nishu

    M unable to open and read.. What hell is this

  25. 5 out of 5

    Vanessa Princessa

    I read this book thanks to Blinkist. What’s in it for me? Learn to win big on the stock market. For many people, the very thought of investing in stocks brings anxiety. What if the market goes south, and you lose everything? What if you invest in a dud while other great stocks shoot up around it? The truth is, those things do often happen. It’s a risky game. Just look at grainy footage of the stock-market crash of 1929 or recall the dotcom bubble, and you’ll see a world of panic and hysteria. But i I read this book thanks to Blinkist. What’s in it for me? Learn to win big on the stock market. For many people, the very thought of investing in stocks brings anxiety. What if the market goes south, and you lose everything? What if you invest in a dud while other great stocks shoot up around it? The truth is, those things do often happen. It’s a risky game. Just look at grainy footage of the stock-market crash of 1929 or recall the dotcom bubble, and you’ll see a world of panic and hysteria. But it doesn’t have to be like this. There are tried and tested methods. These will help you to choose great companies, invest in them at the right time, and avoid the unprofitable ones. You have to learn from history – from the stock market’s great winners and losers. When you do that, it’s possible to strategize so that you maximize your returns and avoid big losses. In these blinks, you’ll learn some of these winning methods, from a telltale stock chart pattern to the best types of companies in which to invest.  In these blinks, you’ll learn • what a “cup with handle” means in stock-market parlance; • what Cisco Systems and General Motors have in common; and • how truly innovative companies can race ahead of the pack. Final summary The key message in these blinks: Before you invest in the stock market, you should learn how to read stock-price patterns; one particularly useful pattern to look out for is called “Cup with Handle.” As well as stock-price patterns, you should make sure that your chosen stock is sound in other ways. For instance, it should be an industry leader, ideally with an innovative product or service, while, most importantly, showing an increase in earnings. Finally, watch what top fund managers are doing but do your own homework, too. Actionable advice: Cut your losses! You should know not just when to get into a stock, but also when to get out. That is, if you don’t want to lose lots of money. As a rule, it’s a good idea to sell a stock when it plunges to 8 percent below your buy-in price. That way, you can keep your losses small as you chase big wins. What to read next: Common Stocks and Uncommon Profits and Other Writings by Philip Fisher You’ve just learned a whole host of top strategies for stock-picking. As you’ll have discovered, there are things you can do to outsmart the market. It doesn’t have to be as anxiety-inducing as it seems.  If you want to find out more tips on investing, then you should head over to the blinks for Common Stocks and Uncommon Profits and Other Writings. There, you’ll learn the tried-and-tested philosophies of stock-market guru Philip Fisher, whose methods have guided investors and financiers for 40 years.

  26. 5 out of 5

    Mike Morgenstein

    How to make money in stocks is comprehensive: it covers William O'Neil's famous CANSLIM formula in its entirety, buying and selling rules, common mistakes investors make, and charting analysis. It seems that the community of CANSLIM's adherents and its offspring Investors Business Daily (IBD) have a pretty staunch following. There have been results that have shown the superior performance of CANSLIM's methodology. Not too much is assumed and many things are explained in the text. Follow the prin How to make money in stocks is comprehensive: it covers William O'Neil's famous CANSLIM formula in its entirety, buying and selling rules, common mistakes investors make, and charting analysis. It seems that the community of CANSLIM's adherents and its offspring Investors Business Daily (IBD) have a pretty staunch following. There have been results that have shown the superior performance of CANSLIM's methodology. Not too much is assumed and many things are explained in the text. Follow the principles of CANSLIM and you get a formulaic method of choosing stocks. There are over a 100 pages worth of charts with patterns that are explained. This very helpful, and is testament to what the author talks about. The structure is solid, though I think the charts should have been left for the end of the text. This makes me believe that the author expects you to reread the text (as he mentions many times throughout). This makes sense because it does cover a lot and if you truly believe in O'Neil's principals then you would feel obliged to give it another read or two. There is almost a cult-like feel to the IBD community though, and a downfall of the text is that the author makes the assumption that you would be interested in subscribing. It can definitely come off as if you're being sold on another product. It doesn't take away from the solid principals explained in the text but I do think that the chapters were the author explains the IBD magazine and website are better off in an appendix, not in the main text. The charts as I've mentioned are better off at the end of the text because I can't understand the point of reviewing all the charts before you learn the charting principles, unless of course the author assumes that you will reread the text. Also the political opinions should be completely left out. For these reasons, I can't possibly give this book a perfect rating. But I must say this: personally I think that the methods and ideas concerning stock picking itself and risk management once you pick them is extremely coherent. I will definitely apply CANSLIM and especially the 7% rule, which intuitively, makes great sense. I love it. Lets see how things go, this might be the most helpful investing book I've ever read.

  27. 4 out of 5

    Patrick

    I read this book about technical analysis, despite being a fundamentally oriented investor myself, to see if I could gain any knowledge about investing by considering the perspective of a technician. So, I have read this book knowing I probably won't agree with large parts of it, but still in good faith, judging the arguments on its merits. I will try to let my review reflect this by not critiquing things where two reasonable people could disagree. I was a bit bothered by some of the reasoning ea I read this book about technical analysis, despite being a fundamentally oriented investor myself, to see if I could gain any knowledge about investing by considering the perspective of a technician. So, I have read this book knowing I probably won't agree with large parts of it, but still in good faith, judging the arguments on its merits. I will try to let my review reflect this by not critiquing things where two reasonable people could disagree. I was a bit bothered by some of the reasoning early in the book, which seemed rather manipulative to me. For instance appealing to emotion (eg: FOMO), and other rhetorical tricks. The support presented for the authors' methods is rather thin and unrigorous, mostly referring to his own experience, without any real explanation of the soundness of the investing strategies. My interpretation is that the underlying idea of chart reading as an investment strategy is that you can derive fundamental trends in a stock by studying how that stock has traded historically, and that certain patterns repeat themselves and are actionable ex ante. The proposed strategy is in large part a momentum strategy, with chart reading as a guide for determining when to buy/sell each particular stock. The author advises against investing in bear markets and to stick to stocks with accelerating positive fundamentals, in particular revenues and earnings per share. I liked some of the fundamental advice, but most of it can be found in any investment book. Some of the advice is also pure hogwash, I'm afraid. On the positive side, there is some good advice for beginners in terms of things to avoid at the beginning in any investment journey. Things like shorting, options, commodities, and penny stocks are very common pitfalls for people just starting out. A good quote on the subject of risks for beginners: "Winning investors should first learn how to minimise the investment risks they take, not increase them." On the negative side, this quote sums up some of the hubris and quality of the argumentation in the book quite nicely: "It's unbelievable how much erroneous information about the stock market, how it works, and how to succeed at it there is out there." I'm afraid this book contains more than its fair share of examples of that. Despite this books general incoherence it still gave me an introduction to technical analysis and some things to mull over, so my grade is 2/5.

  28. 5 out of 5

    Dennis P.

    My bread and butter book when I started dabbling in trading back at college, and is a foundation of my current trading strategies. I can directly attribute this book to helping me make some money that were at times more than the combined salaries of two deans. I own 3 out of 4 editions and currently looking for the first edition to add to the collection. CANSLIM strategy in this book requires patience, objectivity, and detachment. It takes time. It's not a scalper's strat. I've had to backtest a My bread and butter book when I started dabbling in trading back at college, and is a foundation of my current trading strategies. I can directly attribute this book to helping me make some money that were at times more than the combined salaries of two deans. I own 3 out of 4 editions and currently looking for the first edition to add to the collection. CANSLIM strategy in this book requires patience, objectivity, and detachment. It takes time. It's not a scalper's strat. I've had to backtest a collection of historical charts, more times than I would like to admit, in order to check the soundness of the strat and to let it sink in me when it works (sometimes or, conservatively, most times it doesn't and that's fine in the bigger picture of a strategy). These days I'm religious to the charts but I like how the book finds ways to combine technicals with fundamentals e.g. if the charts look right and the "stories" back it up then it's a good time to decide. It has a comprehensive index; Plenty of charts and instructions to demonstrate signals. Some cons: The book doesn't discuss down markets. There are ads pointing to their subscriptions but we've seen those in other good books (e.g. Seven Habits of Highly Effective People, etc). Disclaimer: Futures trading is not for everyone and involves substantial risk of loss.

  29. 4 out of 5

    Isaac Chan

    All personal opinions aside, this book was meant to be a comprehensive guide for the individual new to the stock market. The author guides the reader through his investing philosophy and lays out specific rules in order to follow this philosophy. However, the heavy bias towards technical analysis makes one question the viability of this philosophy. For example, he readily criticizes highly regarded methods of investing, such as searching for undervalued stocks and buying into low PE ratio. He def All personal opinions aside, this book was meant to be a comprehensive guide for the individual new to the stock market. The author guides the reader through his investing philosophy and lays out specific rules in order to follow this philosophy. However, the heavy bias towards technical analysis makes one question the viability of this philosophy. For example, he readily criticizes highly regarded methods of investing, such as searching for undervalued stocks and buying into low PE ratio. He defends his view by asserting that cheap stocks are cheap for a reason, whereby market forces guide low quality stocks to low prices. In his opinion, cheap stocks would eventually become cheaper, and buying them would lose huge amounts of capital! Another thing that displeased me was the highly unprofessional writing style. The author makes a point of advertising his investment counselling business in nearly every page, and criticizes other philosophies without question nor hard evidence. This is somewhat contradictory with his teachings of following one's own judgment and trusting the market!

  30. 5 out of 5

    Hassan Khadori

    Great how to book. It teaches you many important technical fundamentals when analyzing stocks and charts. I took my time reading it because I wrote many reference notes important to remember while you pick your stocks. I considered myself a novice investor and after reading this book, I must say now I know more about investing in the stock market than most people in the general public. Yes O’Neil does try to sell his system and subscription services throughout the book, so I tried the basic leve Great how to book. It teaches you many important technical fundamentals when analyzing stocks and charts. I took my time reading it because I wrote many reference notes important to remember while you pick your stocks. I considered myself a novice investor and after reading this book, I must say now I know more about investing in the stock market than most people in the general public. Yes O’Neil does try to sell his system and subscription services throughout the book, so I tried the basic level. I must say I am very impressed, it saves you so much time when analyzing a stock for its financial performance and historical data, everything is laid out in front of you, in addition all the rating systems he developed for each stock. Also reading the daily market trends, big picture and other news feeds or alerts about stocks which takes about 5 min every morning before trading starts will give you a good head start on the day and helps you prioritize your tasks and expectations. I definitely recommend this book if you are serious about learning on how to invest. It does take time to understand everything, and I think I would probably need to re-read at least 1-2 / year

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