Finance Explained

Alot of people fail in stock market investment planning as there are many less lack of education given. Our friends and relatives may have warned you to stay away from stocks. They may have told you that if you buy a stock you’re throwing your money away, because the stock market is no more reliable than a casino. They may also have the losses to prove it.

A successful American entrepreneur “William J. O’ Niel” Shares his stock picking formula in his book “How to make money in stock”, where he shares an CAN SLIM Formula to use for a long term investment.

CAN SLIM
C stands for current quater earning. The current quater earnings of a stock should be more than 25% of then last quarter.

A stands for Annual growth. The annual growth of a companies should be 25% on yearly basis.

N stands for new product. The company should go with the market trend and should get new product to the company. The management should provide new catalyst.

S stands for supply and demand. The supply should be low and demand of the stock should be high.

L stands for leaders or laggards. The company should be leader in the particular sector. By these there are more chances of growth of stock.

I stands for institutional holding in particular company. The financial institutions have more resources for research of the company. So if the institutional holding are increasing it means the company have future growth.

M stands for market direction. Wait for a bear market or crash. It will more secure and risk factor will be less. Although it in investment the best time is to start now.

As conclusion we learn about the best stock picking by “William J O’Niel”
C current earnings should increase quater to quater
A annual earnings increase year over year
N new product, service, management
S supply & demand, low supply and high demand
L leadership position of the company
I Institutional ownership in company
M look at the market trend.

Thank you so much for being over here till end. Share your thoughts in comments section about it.