How to Make Money in Stocks using CANSLIM System | William O'Neil
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- Опубліковано 19 чер 2024
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How to Make Money in the Stock Market? It's a question I am asked often and perhaps the best way of answering it is to examine the invaluable insights shared by renowned author William O'Neil in his timeless masterpiece, "How to Make Money in Stocks." In this video, I shall delve into the three main pillars of O'Neil's approach including 1. an exploration into the popular CANSLIM method of stock picking, 2. the art of charting where I look at the cup with handle pattern, and 3. the essential nine scenarios that tell us when to sell a stock.
First and foremost, we unlock the secrets of the CANSLIM method, a powerful framework designed to help investors identify winning stocks. CANSLIM represents an acronym for the seven critical factors to consider when selecting stocks: Current earnings, Annual earnings, New products or services, Supply and demand, Leaders or laggards, Institutional sponsorship, and Market direction. By comprehensively analyzing these factors, you'll be equipped with a solid foundation to make informed investment decisions.
Next, we embark on an illuminating journey into the world of charting, exploring the fascinating cup with handle pattern. As we unravel this chart pattern, you'll gain a deep understanding of how it can serve as a powerful tool to identify potential breakouts in stock prices. By recognizing the cup with handle pattern and its variations, you'll have an edge in spotting opportunities and maximizing your returns in the stock market.
Finally, we uncover the nine scenarios that signal when it may be time to sell a stock. Knowing when to exit a position is crucial for successful investing, and William O'Neil provides invaluable guidance on this matter. By understanding these scenarios, such as excessive price gains or losses, distribution days, and divergences, you'll be able to protect your gains and limit your losses effectively.
By combining the wisdom of William O'Neil with practical examples, insightful analysis, and real-world experiences, this video empowers you with the essential knowledge to navigate the complex world of stock market investing. Whether you are a seasoned investor or a beginner, this comprehensive guide will help you develop a disciplined and systematic approach to making money in stocks.
👉 Video Chapters:
00:00 William O'Neil & How to Make Money in Stocks
01:15 CANSLIM
02:38 1. Current Quarterly Earnings
03:31 2. Annual Earnings
04:04 3. New Product, Service or Management
05:04 4. Supply and Demand
05:51 5. Leaders or Laggards
07:21 6. Institutional Sponsorship
07:49 7. Market Direction
09:20 Distribution Days
10:55 Charting (Cup with Handle pattern)
14:40 When to Sell?
17:15 Shankar's Viewpoint
👉 Useful Reading Resources:
‣ How to Make Money in Stocks (book link) : amzn.to/3OUpLlA
‣ Book Summary by The Swedish Investor : • HOW TO MAKE MONEY IN S...
‣ William O’Neil talking about CANSLIM (old video) : • Reading Charts with Wi...
‣ Reading Charts with William O'Neil : • How to Pick Bottoms in...
‣ Video by Equitymaster's Yazad Pavri : • Top 15 Stocks Using th...
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Disclaimer: I am not a SEBI registered investment advisor or research analyst. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented
Good job Shankar Babu.
William O'Neil was an inspiration
eagerly waiting for a detailed video on CANSLIM w.r.t to Indian stocks market
U have the capacity to explain in a clear cut manner. Keep it up
Thanks 🙌
Currently watching all of your videos! Found your channel yesterday and I am absolutely in love with it. 😅
Welcome aboard. Thanks for your kind appreciation!
Welcome sir! We love you
Thank you for this great video.. i have been watching your videos since ET days and you are becoming one of the finest youtubers on finance and analysis of market. Please keep making these kind of book reviews:)
Thank you very much for your kind appreciation and encouragement, Vishal ji
Shankar Ji, the way you explained, is fantastic for Cup and Handle Chart pattern. A Great way to learning from you.. Many thanks.
Thank you sir .. glad you found it informative and useful 🙌
Thanks for the detailed video sir . am first time watching so much details on cup and handle pattern in a youtube channel and uch details are so useful and informative.
Thanks and most welcome!
Very nice explanation.Thanks sir.
Most welcome. Glad you found it useful.
Always ran away from technicals. This time as it was from Shankar had to sit through😊
Thank you for excellent video👍
Most welcome. I too never made an attempt to learn but I've had some recent interactions with people who have actually shown how charting adds more value to one's fundamental analysis and the CANSLIM method is proof of that
I really like to watch your videos...Full of knowledge...keep uploading more and more...Sit it would be also really great to make complete videos on fundamental analysis
Great video Shankar, as always. I started this book a week back. As a fundamental investor, never focused on charts but this book will most likely change my mind.
Thank you very much. Yes, there's a lot more in this book than just CANSLIM. Charting is yet another instrument we can add in our investing toolkit
Awesome Summary. I love your videos. You summarize it so well. I would like you to share more videos on book summary with stocks
Thank you very much 🙌
Sankar ji.. You are gud at explaining financial jargons.. Please do more book review... Keep enlightening us
Thank you very much!
CANSLIM is Gamechanger
Eargly waiting for your 2nd part to checkout the concepts explained in the book to be applied on indian stocks "in detail" - the way you always do ❤.
Glad you found it useful 🙌
Great job, pls continue book review series!!
Thank you, glad you liked it
Great effort...pls continue with book reviews....
Thanks 🙌
I have come across the best of investment books from this channel only, and currently I'm standing on the shoulder of giants and everything is starting to seem logical.. Thank you sir for the kickstart..🙏
Most welcome. Wishing you the best!
Great video as always thank you 🎉
Most welcome 🙌
now a days many youtubers mention ur videos as their reference..happy to see them
i m having 0 interest n knowledge in technical but this video is very interesting..
thanks for the efforts
Most welcome Baskar. I watched one by Dr. Jithendra on Psychology in Tamil .. very nice of him
looking forward to the CANSLIM video
thanks again
Most welcome 🙌
Another Great Video. Thanks Mr. Shanker. Hope we received such kind of videos in future. Keep it up.
Most welcome
Another top notch video, appreciate you and your team's efforts. Your content quality and articulation is unique. I am interested to evaluate Microcap stocks and risk mitigation, as I have earned lot of money from Microcaps invested in 2005 to 2011. But Now a days every IPO is coming with over valued price so not worth to invest them till their value return to median.
Thank you very much
Good job
Do more book reviews continue your great work !
Thanks 🙌
yes, always waiting for Book review
Great stuff Shankar. Keep it up. Valuable lessons. Keep it up
Thank you very much!
Thanks sir for this knowledge
Most welcome 🙌
advice seems more for swing trading than for long term investing
Thank you fr educating small investors and Your videos are informative....Please make more book analysis nd sector analysis
Thank you for the suggestion and appreciation
Thanks Shankar for effort.
Most welcome 🙌
Shankar anna... வழக்கம் போல கலக்கிட்டீங்க போங்க ❤
Thank you Suresh
Awesome presentation as usual Shankar.
Thank you very much
Thanks!
Hello Bikash, thank you very much for your kind appreciation and for this gratuity. I am glad you are finding the content useful and informative .. and it would really be worthwhile to see you put it to good use. Wishing you the best.
Awesome analysis Shankar Ji😊
Thanks a ton
Thanks
Thank you Goutam for this kind gratuity and appreciation. I am glad you liked this video .. it's something I wanted to do & although Mr. O'Neil is not with us, I'm sure his learnings will continue to help investors like us make good use of our capital
I have started to follow your videos from ETMoney days and still continue to watch your every video .. I would like to thank you for your immense effort and fantastic contents. I would also like to see you explaining technical charts etc. I would really like to see a session from your on screeners, creating a system from scratch using tools like screeners, watchers to ordering of many sorts for swing to investing. I am also keen to see some explainer on index fund investing strategy and allocation strategy only on index funds. It would be very nice to see if you can come up any content on hedging for retail investors. Thank you once again for your great contents.
Thank you Goutam ji for your patronage and kind appreciation.
1. I am not adept at technicals and am just about to signup for a course. My knowledge assimilation is slow and deliberate .. but that's the way I like it. Maybe I can do a once-a-month session of what I have been learning.
2. I have a few videos on index investing and asset allocation via index funds on my channel, pls do have a look at those
3. I don't have anything on hedging, will look it up.
@@shankarnath if you do not mind sharing the course you are joining it could help me and others who are interested to learn.
@@GoutamDey The folks at Fisdom have give me access to a course via their One Percent Academy. I think it's free for all. I'll start with that and see if I need more. Hope this helps
Pls upload trading in the zone also
yes videos on more books please. Thanks a lot sir for the valuable content.
Sure, will upload soon. Thanks for your kind words
Fantastic analysis sir. I just ordered this book after your review. Plz come with analysing more such books. Plz review a dedicated trend reversal book.
Thank you very much and do re-read the book for better retention.
@@shankarnath sure.
Great learning sir
Good to know 🙌
Well said 🙏
Thank you!
Thank you for the great video. Can you please explain how to find relative strength with an example?
Most welcome. I have a video on relative strength with many example
Link: ua-cam.com/video/eUTFMkfbNjE/v-deo.html
Its very helpful if you make book analysis as it helps people who dont like/ have dedicated time for reading books. Please keep up the good work.
Thank you 🙌
Please consider making a series for technical analysis
Will be much more helpful for us
Thanks for the suggestion
Sir you should more book reviews. This video was very informative and well made
I'll try. Thank you for your appreciation
Pls make second part of this video. Waiting 🙏
Thanks for the suggestion
Thank you sir...crisp and clean explanation..what should be the timeframe for the charts, is it daily or weekly?
Most welcome. I'm not sure of the timeframe because I am myself a beginner to charts and am just about to start learning about it
Where is the video full use of canslim? You said that you will come with a full dedicated video of it but you didn't make it till now
Great effort
🙌 Thx
CANSLIM, Cup and Handle Chart. What a learning from you ?. Excellent, as usual.
Thank you Gopi. Glad you found it informative
For people investing in US stock market
20% TCS will be collected from July 1st. Can you share some knowledge on TCS and if TCS can be claimed back , while filling returns? And other such information..
So nice ❤
Thanks 🤗
Thanks for the useful information it would be great to have your insights and how best we could build a screener based on the canslim methodology. Requesting this as I see that you are an astute analyser and would be great to learn from you on your methodology interpreting the frame work through a scanner
Most welcome. Yes, I'll be building a screener when I come to a dedicated CANSLIM video which will also include more details on the methodology, some Indian stocks, periods when it works best etc.
@@shankarnath looking forward to it and thanks a ton from bottom of my heart for simplifying stuff and making it easy to understand. Special admiration for all your effort and thought process in simplifying concepts
Very well explained. Pls do more book reviews.
Thank you 🙌
Very practical approach!! Thanks Shankar! But one question does all the things you mentioned works on Indian stocks or a few work?
Thanks. There are some CANSLIM based smallcases, perhaps you can check the performance there as a benchmark
Good work SHANKHAR
Thank you
When will u start your paid advice to invest please . Third time i m posting . Pl respond
Please make more such videos sir
🙌
3:18 wont that be y-o-y growth in quarterly figures? since we are comparing with the previous year's value for the same period
Generally Q-on-Q in a financial analysis context means comparison of the same quarter over two years
Thanks @shankar. Pls review , what i learned investing from darwin book.
Thanks for the suggestion
Gratitude. One request. Not all may be aware how to check volumes on the chart. May be it's useful to give some knowledge about volume RSI or other such indicators. Separate video would be really helpful. Thanks
Thanks for the suggestion. Yes, I'll post as I learn about it. Charting is a new topic for me
i hit that like button even before Shankar' video is started.
:) what do you do if you really really liked a video?
I have a doubt. Instead of buying the stock at the buy point, we can buy at the depth of the cup or at the increasing range of the cup pattern right? The gains will be more and it will also cover the margin of safety criteria..
I guess identifying the depth is very difficult. So in the cup & handle situation, we are seeing the entire play and then making a prediction for the future. But if one looks at only half-a-cup i.e. the deepest point .. then it is difficult to say if the price will go even down or rise up.
Please continue with book reviews
🙌
what are credit risk funds?
Sir how did u get the relative strength sir how did u calculate sirji
Kindly read the book for specifics on the same
For charting patterns, would highly recommend Vivek Singal free course on technicals
I'll have a look at it, thanks for sharing
@@shankarnath pleasure
As it was from you, i watched technical analysis topic
😅
Do u have a screener for this
No, not yet. The technical part on a screener is difficult for me to incorporate
Handle is retracement
super super
❤
Correction required in above video @9:05
How decreasing volume with falling price becomes an interpretation of a bullish sign, it should be a bearish sign .
Hi, I have read it this volume-price interplay in a dozen or so article. E.g.
twitter.com/indraziths/status/1555790067670855680
blog.elearnmarkets.com/significance-of-volume-in-trading/
www.investopedia.com/articles/technical/02/112002.asp
www.reddit.com/r/CryptoCurrency/comments/8mtjxy/general_rules_in_volume_analysis/
Keen to know your logic behind challenging it and if there is any literature on it. Thanks!
I have invested in a CANSLIM strategy 6 Years back through a smallcase fund manager. Only problem with these fund managers was frequent churning. They were able to pick up good stocks but couldn't hold it during the bear period.
The CANSLIM system does move in and out of stocks. But isn't that weekly or monthly task an acceptable thing if the returns are on the higher side?
@@shankarnath I highly appreciate your prompt responses. On your point, I am with you, if returns are on higher side. That's what my point was, churning threw out some of the finest companies in my case. Else their return would have been phenomenal. I think CANSLIM can still be called a more fundamentals heavy strategy, so I don't see a point of frequent churning. For that, I rather invest in pure momentum play.
@@IndiaNirvana Yes, this happens often -- people love a process but they don't like parts of the process. However from what I have read: churning is an integral part of the CANSLIM approach else Mr. O'neil would not have dedicated an entire chapter on "selling" (which most others who follow buy-hold or similar approaches never talk about) if that wasn't the case.
Please do make more videos on books.
Thanks for the suggestion
Kindly do more book reviews.
Thanks for the suggestion 🙌
There must be a join button in ur channel 😊
I'm working on some monetization concepts, will explain them soon enough. Plus I also need to release some paid 1-on-1 consultation slots this week.
@@shankarnath great. 👌🏼Love & support ❤️
Shankar sir, I know this question is not related to this video but want to ask. I am planning to invest in Indusland Bank. What I am seeing is that approx. 44 % shares are pledged. How to interpret the same? Can you please help me to answer this. Thank you in advance :)
Hello Piyush, I have not looked deeply into share pledges & generally the stocks I am invested into don't have such a situation. But from what I have read, shares pledging is mostly seen in companies where promoter shareholding is high. Prima facie, there is nothing wrong with pledges but the market sees an increase in shares pledged as a negative and a decrease as a positive event
@@shankarnath thanks for your response. Anything you can guide me as to what I should check In terms of pledging if you are aware of the same?
Sorry, I don't have enough info to give a definitive answer. I'll circle back to you myself if I study it later
@@shankarnath Thank you , no problem
Got a doubt
How is decrease in volume and decrease in price, is a bullish indicator?
Think of it this way. Let's say the price of a stock or any commodity is going down. However instead of many people selling their shares, you see just a handful of people are selling while the others are still holding onto their shares. The prevailing logic is .. if the stock was bad then more people would have dumped it but that's not the case which means a reversal is likely to happen and there will be renewed interest in the stock. That's why this scenario is given the bullish or a neutral tag.
@@shankarnath thanks ..
Can you make video on liquor companies? Interested in knowing what is pulling down global majors in India.. how long can tailwind for sula continue..
@@robinrods2089 Thanks for the suggestion
Dr. SK molecole
Dear Sir
Thank you for teaching this financial knowledge. Keep follow your content in youtube. You are really doing great job to our society (Educating the Financial knowledge).
Kind request to this topic: learnt different asset classes and diversification. But this topic not clear most of us "How different asset classes will behave different condition?" (Such as, Recession time, War, natural disaster, inflation, asset cyclical ect.,) "How to identify which asset class performing well?"
Thanks Good day sir!!
The table @9:05 , it is correct?
Why do you say so? (please establish with some literature if available)
Hello sir..., I m asking becoz the second option in that table where Price & Vol. both are falling but still the interpretation is Bullish.
Hello Prashant, have you come across some information that this interpretation is incorrect?
No sir I havent come across...i m still searching.
For now i just want to say that i didn't mean any ill intention... I was just asking a doubt. Hope you understand, i have been following you for very long and i m absolutely greatful for all the content you have provided and i really appreciate your efforts. Thank you for being our mentor and hope you continue this.
Technical Analysis course:
CA Rachna Ranade
LearnApp
hindi may ek channel banaw sir .
I'll try. Suggestion ke liye shukriya
The last rule of selling sounds wrong
Hi, curious to know more. Can you share some literature on this?
Dear Shankarji, thanks for such an informative video. Looking forward to more such book reviews.
However I have a question. During the discussion of distribution days, you mentioned Index falling 0.2 or more with high volume. But how to get Index volume data in India?? Should we use some other parameters for stocks traded on Indian exchanges???
Most welcome, glad you liked it. Index volume data can be found from many sources on the Internet; Google search shows a number of options. I was visiting a PMS manager last month and he was using a software named MarketView for his charting and price-volume analysis. Another source is in.tradingview.com/chart/?symbol=NSE%3ANIFTY
Hello,
I am following your channel from start. You always explain topic that no other UA-camr cares. Thank you for sharing such good content 🙏.
I have one request about this video ua-cam.com/video/K2AYOBuIPkU/v-deo.html
I have understood basic but can you please explain in practical or simple terms.
Once again thank you 🙏
Thank you. I went through this video and I'm afraid I don't understand many parts of this as I'm not an expert in this. You'll have to connect with someone who deals with options
Please sir make videos in Hindi language.
Thanks
Thank you very much for this kind gesture, Mr. Balayogi. Sincerely appreciate it and I'm glad you found this video informative and useful.
Great video, please try for more book reviews.
Thanks. Yes, will try for more 🙌
More book reviews please
🙌