How to Make Money in Stocks- Book Review and Summary 2023

The article includes links and images that we may receive a commission when you click to purchase

“How to Make Money in Stocks: A Winning Systems in Good Times and Bad”, the book was written by William J. O’Neil is considered one of the best technical analysis books that provide the key principles and techniques for everyone to invest in the stock market during the bull and bear market.

You must know this book if you are an active investor because of its popularity, and ease of understanding. In particular, it has sold more than 2 million copies worldwide, and it becomes one of the best stock market books for all types of investors.

In this article, we will take a deep analysis of the ” How to make money in stocks” book, which covers the three main components of review and analysis: CANSLIM system, market movement, and learning about stock market charts and patterns. Hopefully, it provides valuable information for everyone who wants to understand more about the financial market.

1. The role of the CANSLIM system in stock market investing- Stock market books

2. Indication of the market movement-Best investing books

3. Getting familiar with stock charts, patterns, and models

Our readers get A FREE TRIAL WITH AMAZON AUDIBLE, claim your first-month free trial by using our link above.

Key points

• One of the best investing books for beginners
• CANSLIM ” A winning system”, is a phenomenon aspect in this book “how to make money in the stocks ( best investing books).
• William J. O’Neil highlights the importance of investing during the ” Bull and Bear” market.

Related reading: The Intelligent Investor By Benjamin Graham: Book Review 2022

1. The role of the CANSLIM system in stock market investing- Stock market books

William J. O’Neil is the author of How to make money in the stocks,  one of the best technical analysis books, and he created the CANSLIM system to help investors minimize the risk of picking the wrong investment product that might help to grow their hard-earned money. Thus, it is one of the important parts that I like the most about this book.

The hardest thing that most investors question themselves is where to start and how to get out of the market. It’s because there is too much information bombardment on the internet, and we do not know which source of information and books to rely on.

In this book, “How to make money in the stocks” the author provides the fundamental principles associated with the stock market investment (best technical analysis books) that provide you with solid knowledge, and hopefully, you would be able to invest with confidence.

By adopting the CANSLIM system, investors will have an opportunity to pick quality stocks at a bargain price that might help them to grow their investment portfolio over time.

Let’s take a look at each element of the CANSLIM system so that you can get familiar with this phenomenon tool.

• “C=Current quarterly earning”
• “A= Annual earning”
• “N= Newer company, newer product”
• “S=  The law of supply and demand”
• “L= big grow stock or laggard”
• “I= Institutional investors”
• “M= The direction of the market”

7 key elements from the CANSLIM system are considered the most important tool for investors to identify the winnable stock in the market. In particular, investors should go through the step-by-step process in terms of screening the financial situation of a company.

This phenomenon tool also provides a guide for investors to determine the direction of the market by highlighting the average buying and selling volume on a day. Hence, it might help them to make a better investment decision based on that measurement (day trading books).

Related reading: The 6 Best Personal Finance Books in 2022

2. Indication of the market movement- Best investing books

William J. O’Neil’s stock market philosophy emphasizes the importance of the CANSLIM system to determine the leader in the market. If you follow the investment principles of the author and use Investor’s Business Daily to update the finance news. Then you might increase your financial knowledge over time.

Based on my reading experience, I think this is a critical piece of advice from the author that investors might use as an investment framework to weather market volatility. As mentioned before, you might reduce the chance of making a wrong financial decision if you strictly follow the investment principle of the author.

More importantly, you will learn all the technical analysis about how to read the company profit and loss statement ( EPS, Net profit, and revenue) as well as understand other factors such as institutional investors, which directly impact the stock rise or fall.

Related reading: The 5 Best Economics Books For Young Investors

3. Getting familiar with stock chart patterns and models- Best Investing books

The author also mentioned ETFs and mutual funds as one of the investing channels if you prefer to invest in those funds. The author argues that those ETFs and mutual funds are less volatile compared with individual stocks. Hence, it is best to invest in a longer timeframe.

Lastly, the book also highlighted the 21 costly common mistakes that investors should avoid reducing the risk of losing money. Hence, I think this is one of the best stock market books for all types of investors if you want to understand deeper about technical analysis and pick the winning stocks.

When I first read this book, I don’t understand completely the concepts of the CANSLIM system, market analysis, and stock market patterns. Thus, you may face the same situation as me, not fully understanding the whole idea behind this book.

However, if you come back to read the book the second or third time, then the chance to understand each critical element in this book will be higher. The author also suggests that we should read a few more times to get familiar with the principles and concepts of How to make money in stocks.

I have read this book ( one of the best stock market books), and sometimes, I still prefer to come back to this book and open the important chapter or principles such as the CANSLIM system, and stock chart analysis. Thus, it helps me to understand the concepts behind this book much better.

By Jiro Nguyen,

The content is based on the personal opinion of the author. It is accurate and true based on the best knowledge of the author and his research. It is not considered professional advice or financial advice.

FAQ SECTION