How to Make Money in Stocks: A Winning System in Good Times or Bad by William O’neil

Who is this guy?
First things first, it's always good to know a bit about the author before you decide the level of credence you should lend to his or her ideas.  This is especially true when you are investing your hard earned money based on what he says.  William O'neil, the author of How to Make Money in Stocks, founded a little publication named Investment Business Daily which if you are not currently reading you should be.  

About the Book
This book is full of advice and guidance around the stock market. The book is structured so a person with minimal knowledge of the stock market and/or stocks can understand and appreciate the subjects discussed. Readers will benefit from the author’s personal tone and down to earth grammar. The book talks heavily about O'Neail's CAN-SLIM methodology that helps the reader learn the basics of equity trading information (ROE, Earnings, PE, ect) as well as how to look at charts and how to understand company financial fundamentals.  

O'Neil talks a lot techniques for finding winning stocks before they make potential gains as well. He further discusses tips on picking the best stocks, mutual funds, and ETFs to maximize gains. Additionally, the author talks about trends in today’s market. The author explains these trends and helps the reader identify profitable trends and to avoid the most common investor mistakes.

In Summary
Most readers will find that the author’s motivation and disciplined approach to investing will benefit their investing abilities. Additionally, most readers will find this book useful if they are looking to invest their extra money in the market without taking a huge risk at losing their finances as the author spends a significant amount of time discussing how to mediate risk and minimize your chances of losing your hard earned money.

Overall, this book is a great tool to gain knowledge on the stock market and how to invest your money properly in numerous forms of securities.  If you're looking to cut your chops on understanding investment data and applying it to your investing strategy pick this book up.

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3 Responses so far.

  1. Anonymous says:

    Since William O’Neil followed his CAN SLIM method to become a millionaire, his teachings and findings are extremely credible. I like that this book has a detailed seven step process for minimizing risks and maximizing gains. It also provides proven techniques to identify the right stocks before they hit the peak, including spending some time on picking daily winning stocks and lists 21 common mistakes that are to be avoided. Some books are written about more theoretical topics which really wasn't what I was looking for.

    Although it takes a lot of time to learn the basics and master the technicalities of reading charts and understanding market trends, the book adequately guides you thorough that process. The book discusses past winners and lists out strategies on the buy/sell approach and focuses also on the big picture based on the affiliated Investor’s business daily newspaper (also run by O’Neil). It's helpful to see what has worked in the past and think about how I can make it work in the future. It also stresses the importance of studying the companies before investing in them. It charts the fundamental analysis scanning process through sales growth, profit margin, and Return on Equity and Debt-to-Equity . The book also covers each of the CANSLIM areas in detail which is very rare. Throughout the book, the William provides valuable information like how to cut your losses short at 7-8% from your purchase price of a stock. For a newbie in stock market investing, this is a very handy guide book.

    There are a lots of graphical descriptions which are tedious at first but are an excellent way of understanding the market. By following the book’s methodology, I think that I have avoided some losses in this markets and also learned what I need to ride the impending bull market!

  2. Anonymous says:

    William O'Neil's book, How to Make Money in Stocks: A Winning System in Good Times and Bad book is one of the best introductions to growth stock investing available. It teaches investors the strategies to buy stocks, actually it teaches tries to make stock buying in an uncertain market possible. The book covers topics which provide an adequate explanation of the various strategies for dealing successfully with stocks. It covers equity investing, which is a good introduction for investors. It states the rules for making optimal profits from stock market.

    The book proposes and talks a lot about a method (CANSLIM) to determine the best stock options for investment and to measure the overall market movement. CANSLIM method is a technique that allows individual investors to ride with the current, and experience the ebb and flow of institutional money. The author is of the belief that the dynamic nature of markets is due to the billions of dollars, the financial institutions move around in search of better profits.

    The first 100 pages of the book are various stock charts and graphs of numerous companies from the past that experienced a huge thrust in a space of few years time. I like the way the book is written in plain, simple and understandable language displays and explains past market results with the help of graphs and figures. Also the proven techniques and knowledge of the author in the Stock Market is clearly reflected. The techniques discussed in the book are a mixture of basic fundamental and technical analysis, for the investors to benefit. I think that this is a must read for every investor, especially those who would like to regain their losses. It's one of the best book on the stock market, out for grabs.

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