What is CANSLIM?
What does it stand for?
Does it really work?
Everything answered in this thread ๐งต
Also includes William O'Neil's suggestions โจ
Lets dive right in! #Investing #CANSLIM
Tags :- @markminervini @RichardMoglen @TraderLion_ @chartmojo
(1/11)
What does it stand for?
Does it really work?
Everything answered in this thread ๐งต
Also includes William O'Neil's suggestions โจ
Lets dive right in! #Investing #CANSLIM
Tags :- @markminervini @RichardMoglen @TraderLion_ @chartmojo
(1/11)
So, before understanding CANSLIM, lets first find out who invented it in the first place ๐ซก
๐ธ CANSLIM, an investing methodology, was developed by William O'Neil, the founder of investor's business daily.
๐ธ He is also the author of the book "How to make money in stocks" which has helped many people to trade better in the stock markets.
(2/11)
๐ธ He is also the author of the book "How to make money in stocks" which has helped many people to trade better in the stock markets.
(2/11)
Now, lets find out what CANSLIM stands for ๐ค
CANSLIM is an acronym which stands for ๐
๐ธ C - Current quarterly earnings.
๐ธ A - Annual earnings growth.
๐ธ N - New products, services, management.
๐ธ S - Supply & Demand.
๐ธ L - Leader or Laggard in industry.
๐ธ I - Institutional sponsorship.
๐ธ M - Market direction.
(3/11)
๐ธ C - Current quarterly earnings.
๐ธ A - Annual earnings growth.
๐ธ N - New products, services, management.
๐ธ S - Supply & Demand.
๐ธ L - Leader or Laggard in industry.
๐ธ I - Institutional sponsorship.
๐ธ M - Market direction.
(3/11)
Now, lets get a basic overview about CANSLIM ๐
๐ธ The methodology combines fundamental & technical analysis to select the best stocks.
๐ธ It looks at a variety of variables, not just one or two which results in a very refined stock selection process. It selects stocks with both good fundamentals & price uptrend.
(4/11)
๐ธ It looks at a variety of variables, not just one or two which results in a very refined stock selection process. It selects stocks with both good fundamentals & price uptrend.
(4/11)
Now, lets develop a deeper understanding of the strategy by learning what earn term signifies ๐ง
๐ฐ C - Current quarterly earnings :- Price follows earnings. If a company has been posting good numbers every quarter, its a matter of time before price appreciates.
๐ธ O'Neil suggests looking for companies growing at a rate of 25% or more quarter over quarter.
(5/11)
๐ธ O'Neil suggests looking for companies growing at a rate of 25% or more quarter over quarter.
(5/11)
๐ฐ A - Annual earnings growth :- This shows the company's earnings growth on an year over year basis giving a comparatively longer term view on how the company is doing.
๐ธ O'Neil recommends looking for companies with an annual earnings growth rate of 25% or more.
(6/11)
๐ธ O'Neil recommends looking for companies with an annual earnings growth rate of 25% or more.
(6/11)
๐ฐ N - New products, services, or management :- When a company offers something new, it has a high chance of giving them some advantage to increase earnings. Best example - Apple.
๐ธ O'Neil suggests looking for companies which have had something new in the recent months.
(7/11)
๐ธ O'Neil suggests looking for companies which have had something new in the recent months.
(7/11)
๐ฐ S - Supply & Demand :- As we buy uptrending stocks, it means companies which have high demand & less supply. Technical analysis helps us here!
๐ธO'Neil suggests looking for companies with high promoter holding as it shows that they have some skin in the game.
(8/11)
๐ธO'Neil suggests looking for companies with high promoter holding as it shows that they have some skin in the game.
(8/11)
๐ฐ L - Leader or laggard :- Leaders are those who outperform the majority of stocks in their sector. Either they have strong price action or they have a very strong MOAT.
๐ธ O'Neil suggests using technical indicators like RSI & moving averages to find leaders.
(9/11)
๐ธ O'Neil suggests using technical indicators like RSI & moving averages to find leaders.
(9/11)
๐ฐ I - Institutional Sponsorship :- It tells us about the number of institutions like FIIs, DIIs or mutual funds holding/buying a particular stock.
๐ธO'Neil suggests looking for stocks with high institutional holding as it shows that the smart money is with us.
(10/11)
๐ธO'Neil suggests looking for stocks with high institutional holding as it shows that the smart money is with us.
(10/11)
๐ฐ M - Market Direction :- It tells us about the current overall trend of the stock market. One should be buying stock only in uptrending markets.
๐ธ O'Neil suggests buying stocks with the broader trend as 3 out of every 4 stocks follow general market trend.
(11/11)
๐ธ O'Neil suggests buying stocks with the broader trend as 3 out of every 4 stocks follow general market trend.
(11/11)
And that's a wrap!
I hope you found the thread helpful & learnt something new today โค๏ธ
Check us out on telegram by clicking the link below ๐
telegram.me
I hope you found the thread helpful & learnt something new today โค๏ธ
Check us out on telegram by clicking the link below ๐
telegram.me
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