How To Make Money In Stocks, Third Edition

From the school of unemotional investing comes the classic How to Make Money in Stocks, by Wall Street analyst and publisher William O'Neil. Readers new to securities will find it an excellent primer, one that relies on time-honoured indicators such as quarterly earnings, market capitalization and daily indexes. O'Neil's study of winning stocks stretches back to the 1960s and he shares his insights here, describing what characterizes a growth stock, when to cut your losses (at seven or eight percent, no more) and how to spot a market top.

The techniques in How to Make Money in Stocks are hardly revolutionary but therein lies their strength, as O'Neil claims his is "a winning system in good times or bad." Investors interested in Net stocks might be disappointed--the author's first rule is that a company must show a pattern of growing profits, which disqualifies many dot coms. O'Neil's approach to stocks is, above all, rational and he pays little heed to market hype.

Those new to investing would do well to read this book before embarking, and even more seasoned traders may find How to Make Money in Stocks a refreshing return to basics. Markets may swing bull and bear but O'Neil promises to stand firm. --Demian McLean, Amazon.com

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Basic Maths problems or just bad english ? - Rated
I was reading the book on the tube, and this just jumped out at me.

Page 22

'multiply 40 by 130% to see that the P/E ratio could possibly expand to 92'

Actually if you multiply 40 by 130% you get 52

If you increase 40 by 130% you get 92

This book did not deserve any more of my attention so I spent the remainder of my journey looking out of the window!!

A Gold Mine of Stock Investing Ideas! - Rated
William O'Neil, who started a successful financial paper known as Investors Business Daily, wrote How to Make Money in Stocks. Decade of research, critical thinking and common sense has helped O'Neil to create some very powerful ways of investing successfully.

This book isn't about getting rich quick. It takes time, study diligence and patience coupled with controlling ones emotions to become an excellent investor.

I have read many books, magazines and articles on investing in stocks, bonds, mutual funds and more over the years. O'Neil's ideas are some of the most solid and consistent I have found to apply to the stock market.

In the book he teaches his CAN SLIM method of investing. Looking at these indicators are powerful ways to find the right stocks. CAN SLIM stands for:

C = Current Quarterly Earnings per share: The Higher the Better
A = Annual Earnings Increases: Look for Growth
N = New Products, New Management, New Highs
S = Supply and Demand
L = Leader or Laggard
I = Institutional Sponsorship
M = Market Direction

There are other great ideas in the book such as: Nineteen Common Mistakes Most Investors Make, How to Cut Your Losses, When to Sell and Take Your Profit and much more.

As a side note, this book doesn't invest much time discussing mutual funds...but this is a book on stocks...not mutual funds.

How to Make Money in Stocks is a gold mine of ideas!

Perfect for beginners - Rated
I decided to enlighten myself on the mysterious of the stockmarket given that the housing market has lost steam and shares seem incredibly cheap. Before I read this book I had no idea how the stock market works or how to pick stocks and read markets but no I do. Highly recommended for novice investors and written in clear non-jargon langugage.

suspect people rating this book - Rated
Im nearly done reading this book, and im very new to the stock market. This is definately very interesting and worth taking notes of the main suggestions as you read along. Whether this will work in the long term remains to be seen, but the book is written well enough to try it out.


However a couple of things worth noting:
1. The book could be half the size. The amount of blagging in there is quite ridiculous.
2. Even more importantly, i only just realised how many anonymous people are making very similar comments here (as 'a customer') within the 58 reviews.

I'll let you know in the next 12 months how i get on :-)

Excellent, highly rated! - Rated
I'm new to investments and purchased this due to the previous glowing reviews. I was not disappointed; the book is well written and most importantly, very practical. It tells you exactly what to look for when purchasing stocks, when to sell, how to read the market and a whole lot more. It does push the IBD website and paper fairly heavily, but in fairness I think it would be difficult and very time consuming to pick CANSLIM stocks manually without the use of a website like IBD. There are thousands of stocks out there... do you want to narrow them down yourself, or let someone else do the hard work?