How To Make Money In Stocks 4th Edition Pdf

Table of Contents

- 0.0.1 How to Make Money in Stocks: A Winning System in Good Times and Bad, Fourth Edition
0.1 Book Review by G Man

1 We also Recommend
- 1.1 About the Author

How to Make Money in Stocks: A Winning System in Good Times and Bad, Fourth Edition

Anyone can learn to invest wisely with this bestselling investment system!

Through every type of market, William J. O'Neil's national bestseller,How to Make Money in Stocks, has shown over 2 million investors the secrets to building wealth. O'Neil's powerful CAN SLIM® Investing System—a proven 7-step process for minimizing risk and maximizing gains—has influenced generations of investors.

Based on a major study of market winners from 1880 to 2009, this expanded edition gives you:

Proven techniques for finding winning stocks before they make big price gains
Tips on picking the best stocks, mutual funds, and ETFs to maximize your gains
100 new charts to help you spot today's most profitable trends

PLUS strategies to help you avoid the 21 most common investor mistakes!

"I dedicated the2004 Stock Trader's Almanac to Bill O'Neil: 'His foresight, innovation, and disciplined approach to stock market investing will influence investors and traders for generations to come.'"
—Yale Hirsch, publisher and editor,Stock Trader's Almanac and author ofLet's Change the World Inc.

"Investor's Business Daily has provided a quarter-century of great financial journalism and investing strategies."
—David Callaway, editor-in-chief, MarketWatch

"How to Make Money in Stocks is a classic. Any investor serious about making money in the market ought to read it."
—Larry Kudlow, host, CNBC's "The Kudlow Report"

Book Review by G Man

The Holy Grail of growth investing

There are different methods of trading/investing in the stock market. There's value investing (like Warren Buffet), there's day trading, swing trading, and then there's growth investing. This book is about growth investing. That is, investing in companies that show exceptional earnings and sales growth (which are the things that affect a stock's price during a bull market cycle). It's not better or worse than the others. But thanks to Bill O'Neill and his Investor's Business Daily service, it is easier to learn.

This is because IBD (the newspaper/service accompanying this strategy) does half the work for you. The book will tell you to look for companies with a certain amount of earnings growth by quarter, for example, and that sounds like a lot of work–and normally, it would be. But if you pay the $10 per month, or whatever it is, for the paper, all of that stuff is done for you. The data is available for any stock in the market, and you're given a list of the top 50 stocks that meet the criteria listed in the book.

But as I said, that's only half the work. Knowing which stocks to buy is easy (thanks to this strategy), but knowing when to buy them and when to sell them is the hard part. The book goes into detail on that. It involves looking for certain patterns in the price charts (also available through their service), and then buying if the price goes above a certain level. Then there are also rules on when to sell.

It's a rules-based system, which is good because it gives you a set of criteria by which to buy and sell stocks, but there is room for flexibility (depending on your abilities as a technical analyst and/or your knowledge of a particular company) which is going to make or break you as a stock trader.

I should finish this review, though, by saying that most traders lose money in stocks. Unless you're so obsessed with stocks that you're willing to put in thousands of hours (just like any highly competitive skill) before you are successful, I'd recommend just buying a mutual fund instead. It's a lot less hassle, and unless you become an elite trader, your returns will likely be comparable over a long enough period of time.

If there is any negative that I have to say about this book, it's that it says nothing about what I believe is the most difficult part about trading. The psychological aspect. I would reference Mark Douglas for that.

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William J. O'Neil is the founder and chairman ofInvestor's Business Daily. He also founded William O'Neil + Company, a leader in equity market information and data research for more than 400 major institutional money managers worldwide.