CANSLIM, also referred to as "C-A-N-S-L-I-M" or "CAN SLIM," identifies a process that investors can use to pick stocks poised to grow faster than average. Each letter in the acronym stands for a key factor to look for when purchasing shares in a company.
Does it Work? No rigorous, published studies of CANSLIM performance exist to our knowledge. However, AAII data suggests that this screen has seen a 26.5% return versus 0.7% for the Samp;P. 500 over the last ten years, and a 28.2% return versus 2.4% since inception.
CAN SLIM is a growth stock investing strategy formulated from a study of stock market winners dating back to 1953 in the book How to Make Money in Stocks: A Winning System In Good Times or Bad. ... The objective of the strategy is to discover leading stocks before they make major price advances.
A stock is considered a growth stock when it's growing faster and higher than stocks of other companies with similar sales and earnings figures. Usually, you compare the growth of a company with growth from other companies in the same industry or compare it with the stock market in general.
| Stocks with the Most Momentum | ||
|---|---|---|
| Price ($) | Market Cap ($B) | |
| L Brands Inc. ( LB) | 67.44 | 18.8 |
| Tesla Inc. ( TSLA) | 694.40 | 666.5 |
| Freeport-McMoRan Inc. ( FCX) | 39.35 | 57.6 |
Here are the best long-term investments in May:
CANSLIM Stocks
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Accelya Solution | 956.50 |
| 2. | Sonata Software | 569.15 |
| 3. | Balmer Law. Inv. | 458.25 |
| 4. | Britannia Inds. | 3468.90 |
He even says that he would have called Black Tuesday, the infamous crash of '29, had his system been around back then. However, CAN SLIM doesn't have a formally audited track record to verify O'Neil's investing prowess.
According to the Investor's Business Daily Web site, the IBD 100 (which is an index of the top 100 stocks according to the CAN SLIM system) has trounced the S&P 500 Index 132.8 percent to 20.8 percentfor the S&P 500 since its May 2003 inception through yesterday.
The stop-loss trading rule in the CAN SLIM book seemed like common sense – cut your losses if share prices fell 7 or 8% below your buy-in price. Becuase the upsides were so great when a trade did go well it appeared that I could earn 200 – 300% while only experiencing a maximum loss of 8%.
What Are Three Ways to Make Money in the Stock Market? Three ways to make money in the stock market are: Sell stock shares at a profit—that is, for a higher price than you paid for them. This is the classic strategy, "buy low, sell high."
Our CAN SLIM Masters Program offers investors, financial advisors, portfolio managers, and traders an incredible educational opportunity to acquire key insights that will help guide not only the next year but the rest of their, and often their clients', financial lives,” said Jerry Ferrara, President at IBD.
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