The How to Make Money in Stocks Complete Investing System: Your Ultimate Guide to Winning in Good Times and Bad

I have read over 150 books on stock trading and investing. I have reviewed them all here on Amazon. With this book I will now have read "How to make money in stocks" three times, reading the 2nd, 3rd, and now 4th edition. I have to say after reading this book at different stages in my trading journey, and having used its principles in real investing and trading I truly believe this is the #1 stock trading/investing book out there. I myself have used the principles of this book to average over a 20% return in my 401K from 2003 to 2007 and then like some of the smart readers of O'Neil's newspaper went to cash in January 2008 completely sidestepping the financial meltdown thanks to his principles. Author William O'Neil is the modern day predecessor of the greatest trading legends, Jesse Livermore, Nicolas Darvas, Gerald Loeb, and Bernard Baruch. From the investing results of his proteges Gil Morales and Chis Kacher with their accumulative 18,000% return during the boom years that they document in "Trade like an O'Neil Disciple" he is likely the greatest living pure stock trader in the world. William O'Neil also runs O'Neil and Company and advises some of the world's top money mangers. O'Neil is also publisher of the Investor's Business Daily newspaper which he subsidizes because it is not profitable. (I think he publishes it for himself, all of his other businesses are profitable.) At the beginning of the book you will see the price charts of the greatest winning stocks of the past 100 years. They are marked with notes to show you what proper bases look like and what a stock looks like coming out of a cup with handle formation. You will see the difference between a strong chart and a weak chart. It is very interesting to see what a climax top looks like right when a stock runs out of buyers and then investors sell in a panic. How the 50 day moving average relates to a chart along with the general market is also very educational. The book lays out both excellent fundamental reasons for buying growth stocks using the CAN-SLIM method along with the rules on when to buy them. It also advises to cut all losses to no more than a maximum of 7% to 8%, and to prepare to take profits when you are up 20% to 25% in a winner. The key is to cut the loser when it starts failing to make new highs out of a chart cup with handle formation, and also let a winner run and do not sell it unless it pulls back sharply or it runs to high to fast and fails to hold the new highs with a climax top formation. The CAN SLIM method is based on a stock having these fundamental criteria: C-Current quarterly earnings per share should be up a major percentage-25% to 50% minimum-over the same quarter the previous year. A-Annual earnings growth rates of 25% to 50%. N-New products,new services or new management along with new price highs. S- Supply and demand:big volume demand for the stock at key points. L- Buy only the leading stock in the top industry groups. I-Only buy stocks with some institutional sponsorship. M-Only buy into an up trending market. The book covers each of these areas in great detail. This deluxe edition of the book also has a free month of eIBD, an action plan DVD, and admission to a three hour IBD investing workshop. You will understand the CAN SLIM system after reading this book. This system was built after studying the greatest winning stocks of the past 100 years both their fundamentals and technicals. This book is a wealth of information. It is not based on anyone's ego, beliefs, or predictions. William O'Neil has turned making money in stocks into a science. AAII's independent study showed the CAN SLIM method was #1 of many systems tested from 1998 to 2009 with an average 35.3% annual and cumulative 2,763% return. The only thing I disagree with in this book is O'Neil suggesting buying and holding stock mutual funds for 15 or 20 year time horizons because unlike stocks they do come back and history has shown 10 year holding periods are almost always a win. Studies have shown you can double your returns in a stock index by simply selling when it crosses down through its 200 day moving average and only buying back when it crosses back above the 200 day moving average. I could not watch my mutual fund's value melt away and do nothing, they do track the market very closely. I do not understand why O'Neil would put that in his book after the carnage of 2000 and 2008. I mentally can not deal with such large losses I go to cash from mutual funds in recessions and down trends. The book could have also gone a little deeper into the psychology of investing/trading, most traders and investors have huge problems cutting their losses, letting their winners run, and sometimes even pulling the trigger to buy the stock. I would love to have had a chapter on O'Neil's thoughts on trading psychology. Regardless, in my opinion the #1 book on investing/trading on the market today.

another way of looking at the stock market, forget the 'media screamers' who know 'everything'. This lets you find out what really matters: which companies make some real money and have a real future!

Another excellent update in this series. Very clear and concise explanations of the market and great analysis of charts. I would highly recommend this book and the websites that are also run by William O'Neil.

I think there is definitely some value you can get out of the book and the writing is easy, however, the constant political bias it shoves you down your throat makes me angry since it is uncalled for in this subject. That and the neverending promotion to his subscription site. I'd have more respect for this book if the title had been "How to use our external services in your stock investment journey"

O'Neil's book is a blend of Tecnicals and funamental research. Simple patterns lined up with good fundamentals and then ride the trend. Easy to read. It is also an ad for his daily newspaper, which if you like O'Neil you may want to check it out. Reminds me of Nicolas Darvas use of "Technofundamentals".