How to Make Money in Stocks: A Winning System in Good Times or Bad

Imagine stepping into the world of stock investing armed with a system that has been meticulously crafted from over a century of market history. This system, known as CAN SLIM, is not just a collection of rules but a powerful lens through which the market’s rhythm becomes clear. Buying stocks when they’re on the way up in price, not on the way down, is a principle that defies common intuition yet has been proven time and again. Take, for example, Northern Pacific, whose price soared an astonishing 1,181% in just 29 weeks, or Bethlehem Steel, which climbed nearly 1,479% over 99 weeks. These extraordinary gains were not flukes but the results of buying at the right time—when momentum and fundamentals align.

CAN SLIM stands for seven critical factors: Current quarterly earnings, Annual earnings growth, New products or management, Supply and demand dynamics, Leader or laggard status, Institutional sponsorship, and Market direction. Each component works in harmony to identify stocks with the highest potential.

One of the most striking insights is the emphasis on buying stocks near their highs. While many investors chase bargains at lows, history reveals that stocks making new highs are often the ones that continue climbing. This is due to the law of supply and demand, where increasing demand pushes prices higher, attracting institutional investors and fueling further gains.

Understanding this requires a shift in mindset: instead of fearing high prices, embrace them as signals of strength. This approach helps avoid the trap of value investing in declining stocks that may never recover. It’s a dance with market psychology and crowd behavior, where the majority’s fear of buying high becomes the savvy investor’s opportunity.

As we journey through this audiobook, you will learn how to decode these signals, interpret earnings growth, read charts like a professional, and align your investments with market direction. The foundation laid by CAN SLIM will be your compass, guiding you through the complexities of investing with confidence and clarity.

Now that we have glimpsed the power of CAN SLIM, let us delve deeper into the art of reading charts, the visual language of the market, to improve our timing and selection.