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How to Make Money in Stocks: A Winning System in Good Times and Bad, Fourth Edition BY WILLIAM J. O’NEIL

About the book

Author William O’Neil shows how an investor can successfully trade in any market type with the use of a 7-step process proven to be effective in lowering risks and expanding gains. This book will benefit the reader in three ways: (1) provides effective techniques in identifying winning stocks before they gain big prices, (2) gives tips on choosing the best stocks, mutual funds, and ETFs in maximizing gains, and (3) includes 100 new charts that will assist in spotting the current profitable trends. An addition to the book is a set of strategies that will help the reader avoid the twenty-one most common mistakes by investors.

Review

In the many types of trading methods or strategies available in the market, this book chooses to discuss growth investing in particular. This means investing in companies that report high sales growth and earnings. This method is a bit complex than other strategies, such as day trading. However, in O’Neil’s book, he makes it easier to understand and implement. 

The book discusses which stocks in the market are easy to trade, and shows how to identify the right trading time in buying and selling them. O’Neil goes into deeper detail regarding the latter two because these topics are usually the least discussed in most finance books—which is also the characteristic that separates this book from the rest. 

About the Author

WILLIAM J. O’NEIL founded Investor’s Business Daily, where he currently sits as chairman. He is also the founder of William O’Neil + Company, which is the top equity market information and data research for over four hundred large institutional money managers globally. 

Table of Contents

Part I: A Winning System: CAN SLIM

Introduction You Must Learn and Benefit from America’s 100 Years of Super Winners

CHAPTER 1 America’s Greatest Stock-Picking Secrets

CHAPTER 2 How to Read Charts Like a Pro and Improve Your Selection and Timing

CHAPTER 3 C = Current Big or Accelerating Quarterly Earnings and Sales per Share

CHAPTER 4 A = Annual Earnings Increases: Look for Big Growth

CHAPTER 5 N = Newer Companies, New Products, New Management, New Highs Off Properly Formed Chart Bases

CHAPTER 6 S = Supply and Demand: Big Volume Demand at Key Points

CHAPTER 7 L = Leader or Laggard: Which Is Your Stock?

CHAPTER 8 I = Institutional Sponsorship

CHAPTER 9 M = Market Direction: How You Can Determine It

Part II: Be Smart from the Start

CHAPTER 10 When You Must Sell and Cut Every Loss…Without Exception

CHAPTER 11 When to Sell and Take Your Worthwhile Profits

CHAPTER 12 Money Management: Should You Diversify, Invest for the Long-Haul, Use Margin, Sell Short, or Buy Options, IPOs, Tax Shelters, Nasdaq Stocks, Foreign Stocks, Bonds, or Other Assets?

CHAPTER 13 Twenty-One Costly Common Mistakes Investors Make

Part III: Investing Like a Professional

CHAPTER 14 More Models of Great Stock Market Winners

CHAPTER 15 Picking the Best Market Themes, Sectors, and Industry Groups

CHAPTER 16 How I Use IBD® to Find Potential Winning Stocks

CHAPTER 17 Watching the Market and Reacting to News

CHAPTER 18 How You Could Make Your Million Owning Mutual Funds

CHAPTER 19 Institutional Portfolio Ideas

CHAPTER 20 Important Time-Tested Proven Rules and Guidelines to Remember

Success Stories

Index