Canslim Investment Strategy

THE CANSLIM INVESTMENT STRATEGY With thousands of publicly traded companies to invest in, people often struggle to identify stocks that have the potential to generate significant gains and prove to be a multibagger. And with the stock market scaling new highs each passing day, picking the right stock has become even more difficult.

Investors also face the eternal dilemma of whether they should choose a company on the basis of robust fundamentals or decide on the basis of technical factors that help time the market.

Long story short, experts believe using a blend approach and putting the two strategies together could prove to be a winning strategy.

One particularly useful strategy for detecting high-growth stocks uses the acronym CANSLIM. Also referred to as "C-A-N-S-L-I-M" or "CAN SLIM," this investment strategy is a techno-fundamental strategy that helps investors identify and pick quality stocks poised to grow faster than average.

The system identifies companies with strong fundamentals and encourages buying their stock when they emerge from price consolidation periods and before they advance dramatically in price. Hence, CANSLIM strategy focuses on companies that show acceleration in earnings because of innovation and suggests buying them before the stock price witnesses a major spike.

The history of CANSLIM has its roots back to the late 1950s when a young stockbroker, William J. O'Neil, launched a study to identify the best stocks of all time and started analysing every available performance metric of top-performing stocks since 1880. In 1988, O’Neil published a book called, How to Make Money in Stocks: A Winning System in Good Times and Bad, in which he detailed the CANSLIM method.

O'Neil concluded that year after year, the best stocks display seven common traits just before they make their biggest gains. The book is now in its 4th edition and has sold over 2 million copies worldwide.

O'Neil used the CANSLIM Investing System to achieve remarkable investing success and become the youngest person at the time to buy a seat on the New York Stock Exchange (NYSE). The research continues to this date and covers every market cycle since 1880. In fact, this strategy was named the top-performing investment strategy from 1998-2009 by the American Association of Individual Investors (AAII). With the strategy relevant for over 140 years in the global stock market history, countless investors have also used the CANSLIM approach to generate market-beating returns and garner money-making skills.

So, CANSLIM represents the seven characteristics of top-performing stocks and each letter in the acronym stands for a key factor to look for when purchasing shares of a company.

C – Current Quarterly Earnings A – Annual Earnings N – New Product, Service, Management or Price High S – Supply and Demand L – Leader or Laggard?

I – Institutional Ownership/Sponsorship M – Market Direction For More Information watch this video : https://youtu.be/5NgI8ZxQ848

Name : Website : Phone No : Address :

Planify Consultancy India Private Limited https://www.planify.in 07065560002

91 Springboard, NH8-Udyog Vihar, 90B Sector 18, Gurugram, Haryana