October 2009

If you want to start your own stock market investing program using the CANSLIM strategy, I'll be creating a five part series of articles that would be a good place to start. Here's a preview.

The first place William O'Neil recommends you start is with determining the direction of the general stock market today. Is it going up or down? Follow the trend.

Next, he wants you to use a simple 3 to 1 profit and loss percentage plan for buying and selling stocks. Cut your losses quickly and take your gains before they disappear.

After that, O'Neil goes over buy the best stocks at the best times. You'll discover that there is an ideal buy point that all stock market winners break through called a "pivot point" which it's up to you to calculate.

The fourth article in the series goes over when to sell and take your profits. You want to sell your positions before they come down in price which all stocks do at some point.

Finally, he talks about some time proven methods to managing your portfolio to maximize your results and minimize your losses.

These articles are my interpretation of how to implement CANSLIM, but as always, it's your money and you must be responsible for it. You can and will lose money in the stock market, even the pros do. But don't let that stop you from trying to master investing in the stock market on your own.

Here are the tools you need to implement O'Neil's CANSLIM strategy.

Investor's Business Daily
How to Make Money in Stocks
The Successful Investor
24 Essential Lessons for Investment Success
Etables
Daily Graphs
Stockcharts.com

As I find investing sites devoted to investing, I'll put them here.

Stock Tips from Chris Perruna
Stockbee
Trader Mike

As I work on this project, I'm going to start putting together some checklists and spreadsheets to keep track of everything. Here is what I have so far. Investing Checklist (rough draft)

Right now, I'm working on building some content on this site about buying stocks. If you are a beginner, this is an exciting step, and you are more concerned with the mechanics of how to buy a stock. If you have been around a bit, then you are more interesting in the best stocks to buy. Either way, I'll try and discuss the topic from both points a view.

Each day, it's important to review what happened in the stock market today. In fact, the first thing you should do each and every day is review the price and volume action of the S&P 500, the Dow, the NYSE and the NASDAQ.

If you have an investing or finance related site and want to participate in an investing blog carnival, check out the Carnival of Stock Market Investing.

One of the best ways to learn how to invest is by using a stock market simulator.

Investopedia Stock Simulator
Wall Street Survivor