Stock Trading Strategy: 3-Book Bundle – Stock Market Investing for Beginners + Day Trading for Beginners + Penny Stocks + bonus content: Trading Psychology of Millionaire Investors pdfdrive com

 
CAN SLIM
CAN SLIM is an acronym that stands for Current quarterly earnings, Annual
earnings growth, new product, service, management, or high price, supply and
demand, Leader or Laggard, Institutional sponsorship, and Market direction.
According to this strategy, by simply looking at these factors, you can pinpoint
the best stocks to invest in.
So, how do you apply this strategy? The first step is for you to identify stocks
that have a quarterly earnings increase rate of at least 25%. Since you also need
to be particular with the growth of the company for a long term, you should also
consider the annual earnings growth of the company. This strategy recommends
that you should look for a company that has 25% annual earnings growth
(minimum) for the past five years. You should also keep watch of companies
that offer something that is new to the market. Studies show that one of the
common characteristics of the best stocks performers is that their companies
have something new to offer to the market. You should also pay attention to the
rule of supply and demand. If a limited product has a high demand, then the
effect is that its price will increase. In business, this rule of supply and demand is
always present. The next thing that you need to identify is where the stocks are

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coming from. Is the company considered a leader in the industry or a laggard?
Of course, your aim is to get your stocks from a leader. Therefore, when you use
this strategy, only get your stocks from reliable and well-established companies.
This does not mean that you should completely ignore new companies. After all,
there are a good number of start-up companies that have a potential to make it
big in the market. Many activities in the stock market also come from mutual
funds and pensions, so also keep your eye on institutional sponsorship. Lastly,
keep your eye on the market trend. If you can read the trend and take advantage
of it just before it changes, then you can turn it into a goldmine for profit.