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It takes into account a number of technical and fundamental factors (including rapid earnings growth, trading volume, industry leadership, etc.) All the elements of CANSLIM can be read as a wish list for fund managers seeking growth, so it is a matter of time until the buying demand increases. He prefers to focus on companies that are still in a stage of earnings acceleration before they make major price advances. O’Neil extended his analysis of past market winners to 600 companies and released new findings in the third edition in 2002, along with a O’Neill does not believe in value investing as he feels that stocks generally sell for what they are worth. A moving average is a technical analysis indicator that helps smooth out price action by filtering out the “noise” from random price fluctuations. In truth, there is no rigorous academic research anywhere that proves any investing strategy works. It's hard to do justice to O'Neill's writings using purely quantitative criteria but we have tried to set out some illlustrative screening metrics. The “original” CAN SLIM approach published in quot;How to Make Money in Stocks” is based on O’Neil’s analysis of 500 of the biggest stock market winners from 1953 to 1993, although the sample period has since been extended significantly.

One of the claims made by CANSLIM proponents is that research shows conclusively that it works. A cup and handle is a bullish technical price pattern that appears in the shape of a handled cup on a price chart. CANSLIM is a strategy that strongly encourages cutting all losses at no more than 7% or 8% below the buy point, with no exceptions, to minimize losses and to preserve gains.

to come up with a list of stock picks. Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! A stock trader is an individual or other entity that engages in the buying and selling of stocks. CAN SLIM is a well-known growth stock picking system developed by William O’Neill that gets published in the Investor’s Business Daily. As a strategy, it tries to merge fundamentals and technical analysis,” says Kolkata-based value investor Abhishek Basumallick. A Bollinger Band® is a momentum indicator used in technical analysis that depicts two standard deviations above and below a simple moving average. O’Neill does not believe in value investing as he feels that stocks generally sell for what they are worth. The seven criteria that comprise CANSLIM are as follows: CAN SLIM may not do very well in a choppy market. My personal opinion and I could be wrong, is that the CANSLIM method doesn't really work as well in real life as it does on paper and in investing contests and in the unaudited claims of its followers and it appears no professional money managers, other than the one CANSLIM fund, use it and it is simply a product being sold to retail investors to promote the books, seminars and the IBD …

Some investors have criticized the strategy when they didn't use the stop-loss criterion but O'Neil has replied that you have to use the whole strategy and not just the parts you like. As such, CANSLIM is a good fit for experienced investors with a higher risk tolerance. No rigorous, published studies of CANSLIM performance exist to our knowledge. Don't miss industry news. It consists of investing in securities that have outperformed their market or benchmark. CAN SLIM, also referred to as "C-A-N-S-L-I-M" or "CANSLIM," identifies a process that the investor can use where each letter in the acronym stands for a key factor to look for when purchasing shares in a company. Relative strength is a technique used in momentum investing. CANSLIM stocks cannot be bought and simply held as much of the value is being priced in for future growth, meaning any slowing in the growth trajectory or the market as a whole may result in the stock being punished.

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