“How to Make Money in Stocks” is a book written by William J. O’Neil, the founder of Investor’s Business Daily (IBD). It’s a comprehensive guide on investing in the stock market, particularly focusing on the strategy of buying growth stocks at the right time. Here’s a brief introduction to the book:
Title: How to Make Money in Stocks
Author: William J. O’Neil
Published: First published in 1988, with subsequent updated editions
Introduction:
“How to Make Money in Stocks” provides investors with a systematic approach to finding and investing in winning stocks. The book introduces O’Neil’s proprietary investing strategy, known as CAN SLIM, which stands for:
- C: Current quarterly earnings per share
- A: Annual earnings growth
- N: New products, new management, new highs
- S: Supply and demand
- L: Leader or laggard
- I: Institutional sponsorship
- M: Market direction
The book emphasizes the importance of studying a company’s fundamentals, technical analysis of stock charts, and understanding market trends. O’Neil advocates for buying stocks with strong earnings and sales growth, solid institutional sponsorship, and technical chart patterns indicating upward momentum.
Overall, “How to Make Money in Stocks” is a practical guide for both novice and experienced investors looking to build wealth through stock market investments. It provides valuable insights into O’Neil’s proven strategies and principles for successful stock investing.