How to Make Money in Stocks is a comprehensive guide for investors who aim to achieve success in the stock market. The book provides practical strategies and techniques based on the principles of O'Neil's CAN SLIM system, which focuses on identifying high-growth stocks and timing their purchase and sale.

How to Make Money in Stocks

[How to Make Money](https://amzn.to/3KsONFh) _in Stocks_ is a comprehensive guide for investors who aim to achieve success in the stock market. The book provides practical strategies and techniques based on the principles of O'Neil's **CAN SLIM** system, which focuses on identifying high-growth stocks and timing their purchase and sale.

Key Principles
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### 1 . **C** : Current Earnings Per Share (EPS) Evaluation

*   Identify companies with a strong track record of increasing earnings per share (EPS) over time.
*   Focus on stocks with recent quarterly EPS growth rates of at least 25% or higher.
*   Look for consistent annual EPS growth over the past three years.
*   XYZ Corp. has demonstrated a 30% average annual EPS growth for the past three years.

### 2 . **A** : Annual Earnings Growth

*   Determine if the company has a history of increasing annual earnings over the past five years.
*   Seek out companies with annual earnings growth rates of at least 25% or higher.
*   Avoid stocks with inconsistent or declining earnings over time.
*   ABC Inc. has shown a consistent annual earnings growth of 30% for the past five years.

### 3 . **N** : New Products, New Management, and New Highs

*   Look for companies that have recently introduced innovative products or services.
*   Consider companies with competent and visionary management.
*   Monitor stocks that are trading at new 52-week highs as it indicates potential strength.
*   Company XYZ recently launched a cutting-edge technology product that gained significant market attention.

### 4 . **S** : Supply and Demand

*   Focus on stocks with strong demand from institutional investors.
*   Pay attention to stocks with a limited supply of shares.
*   Consider stocks with increased trading volume as it signifies higher demand.
*   Stock XYZ experienced a surge in trading volume, indicating increased institutional interest.

### 5 . **L** : Leader or Laggard

*   Identify industry-leading companies that consistently outperform their competitors.
*   Avoid investing in laggards that continually underperform in their industry sector.
*   Examples: ABC Corp. dominates the market and outperforms other competitors in terms of sales and market share.

### 6 . **I** : Institutional Sponsorship

*   Look for stocks with significant institutional ownership.
*   Consider stocks that receive positive ratings and buy recommendations from institutional investors.
*   XYZ Inc. has a high level of institutional ownership, indicating confidence from professional investors.

### 7 . **M** : Market Direction

*   Invest during a confirmed uptrend in the overall market.
*   Avoid investing when the market is in a downtrend or showing signs of weakness.
*   During a bullish market, stock prices tend to rise, providing better investment opportunities.

How to Make Money in Stocks

A Winning System in Good Times Or Bad

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