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

Imagine stepping into a world where the stock market's secrets unfold like a timeless story. The journey begins with a powerful formula called CAN SLIM, an acronym that unlocks the traits of the greatest stock winners across history. At its core, CAN SLIM teaches us to seek stocks with strong current quarterly earnings, robust annual growth, exciting new products or leadership, favorable supply and demand balance, clear leadership in their industry, solid institutional sponsorship, and an understanding of the market’s direction.

It’s fascinating how this system emerged from decades of research, analyzing over a thousand stocks that soared to remarkable heights. These weren’t just random picks; they shared common DNA. For example, companies like Dell, Cisco Systems, and America Online posted earnings growth of 74%, 150%, and 900% respectively, just before their monumental price surges. This pattern isn’t new — even in the early 1900s, Northern Pacific skyrocketed over 1,100% in less than half a year, fueled by similar forces.

The lesson here is clear: buy stocks when they are already moving up, not when they look cheap on the way down. This goes against our natural instincts to seek bargains, but history proves it time and again. Investing is as much about psychology as numbers. The market rewards momentum and punishes hesitation.

Moreover, you don’t need a fortune to start. Many great investors began with just a handful of shares, learning and growing with their investments. This story is about empowerment — unlocking the ability to participate in the market’s growth regardless of your starting point.

As you absorb these insights, prepare to dive deeper into the art and science of reading charts, understanding market cycles, and mastering timing. Each chapter builds on this foundation, guiding you to become a confident, knowledgeable investor. Now, let’s turn the page and explore how charts reveal the hidden language of the market, illuminating when to buy and when to sell.