How to Make Money in Stocks

The next time you consider buying a stock, check its weekly volume. It’s usually a constructive sign when the number of weeks that the stock closes up in price on above-average weekly volume outnumbers the number of weeks that it closes down in price on above-average volume while still in its chart base.

Pivot buy points in correct chart base patterns are not typically based on a stock’s old high price. Most of them occur at 5% to 10% below the prior peak.

you buy at more than 5% to 10% past the precise buy point, you are buying late and will more than likely get caught in the next price correction.

You want a stock to prove its strength to you before you invest in it.

Your objective isn’t to buy at the cheapest price or near the low, but to begin buying at exactly the right time, when your chances for success are greatest.

The skill you need to learn in order to analyze these bases is how to diagnose whether the price and volume movements are normal or abnormal. Do they signal strength or weakness?

Chart patterns, or “bases,” are simply areas of price correction and consolidation after an earlier price advance. Most of them (80% to 90%) are created and formed as a result of corrections in the general market.

the distinguished economists Milton and Rose Friedman devoted the first 28 pages of their excellent book Free to Choose to the power of market facts and the unique ability of prices to provide important and accurate information to decision makers.

C Current Quarterly Earnings per Share: The Higher, the Better
A Annual Earnings Increases: Look for Significant Growth
N New Products, New Management, New Highs: Buying at the Right Time
S Supply and Demand: Shares Outstanding Plus Big Volume Demand
L Leader or Laggard: Which Is Your Stock?
I Institutional Sponsorship: Follow the Leaders
M Market Direction: How to Determine It
Please begin immediately with Chapter 1. Go for it. You can do it.

You can definitely learn how to pick winners in the stock market, and you can become part owner of the best companies in the world. So, let’s get started right now. Here’s a sneak preview of CAN SLIM: