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How To Make Money In Stocks: A Winning System in Good Times or Bad, 3rd Edition (平装)
by William J. O'Neil
| Category:
Investing, Stock market, Investment, Personal finance |
| Market price: ¥ 158.00
MSL price:
¥ 128.00
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| Stock:
In Stock |
MSL rating:
 Good for Gifts |
| MSL Pointer Review:
Now an established classic on investing, this is an outstanding reference for all the investors. |
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AllReviews |
1 2   | Total 2 pages 12 items |
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A British reader (MSL quote), UK
<2006-12-31 00:00>
O'Neil's book is now an established classic, influencing millions of readers and other investment writers. I live in the UK and I know that Bernice Cohen and Jim Slater were deeply influenced by O'Neil's philosophy. Both are very accomplished investors themselves.
William O'Neil doesn't tell you anything new about growth investing. He tells them in a way that makes sense. Accelerating EPS, something new, leadership, market direction, institutional support...these are well-known growth investment criteria. So people who are slagging off O'Neil here don't really know much about investing. And yes, you have to spend a lot of time/money on charts, on price movements, and on researching companies. I spend a fortune on Company REFS every year. Why not? Has someone told you that getting rich was easy? If you are not ready to give investing a great deal of your time, money and passion, you can forget about it.
William O'Neil doesn't tell you anything new about growth investing. He tells them in a way that makes sense. Accelerating EPS, something new, leadership, market direction, institutional support...these are well-known growth investment criteria. So people who are slagging off O'Neil here don't really know much about investing. And yes, you have to spend a lot of time/money on charts, on price movements, and on researching companies. I spend a fortune on Company REFS every year. Why not? Has someone told you that getting rich was easy? If you are not ready to give investing a great deal of your time, money and passion, you can forget about it.
I have followed his methods and yes, I have made good money from them. That too living here in the UK, where you cannot get all the information we need on O'Neil's criteria (and no, I haven't subscribed to IBD, there is no use of IBD for UK markets). So you have to be imaginative. I don't have access to IBD's proprietary relative strength measure, so I use Company REFS's measure instead, and analyze charts of a stock (against FTSE-100 and sector index) very closely using ShareScope. UK companies don't have quarterly reports, so I use half-yearly reports instead. I don't have access to IBD's SMR rating (sales + margin + relative strength). So I take a very close look at each of these measures on Company REFS and ADVFN. If you are driven enough, you can find a solution to every problem.
My only complaint is that O'Neil doesn't emphasize the importance of cash flow and balance sheet enough. He does mention the requirements of 1) low debt and 2) cash flow per share higher than EPS, but only fleetingly. But that's really nitpicking. Everybody has (at least should have, anyway) their own investment strategy. So you need to decide which bit you want to stress on.
Great book A must read for every investor. |
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Robert Katz (MSL quote), USA
<2006-12-31 00:00>
I have read many books on investing, and this one is, all things considered, the best. It has it's weaknesses--the section on technical analysis is inadequate, and the numerous signs by which one can supposedly tell when a stock is topping out are simply too vague to be be followed. Nevertheless, the system does work. Though retrospective (and therefore subject to the charge of data mining), O'Neil's 40 year database has identified numerous factors associated with stocks that are likely to go up. James O'Shaughnessy, in What Works on Wall Street, has performed a similar study, and has found roughly similar results, the main difference between the two being that O'Shaugnessy's data supports the idea that a low p/e stock is more likely to be successful, while O'Neil discounts the influence of p/e. No matter. Both have confirmed that a stock that has been going up is likely to continue going up. Relative strength counts. In addition, O'Neil's insistence on cutting your losses while they are still small is perhaps the single most important lesson an aspiring millionaire can learn. About two years ago, I was telling a colleague of mine that I felt lucky to have sold Cisco, Juniper and Sun for small losses. His comment was an amazed, "You mean you locked in a loss?" A few days ago, I made a similar comment to him, figuring that he had probably forgotten our earlier discussion. This time, he listened attentively, smiled sadly, and nodded. The many Amazon reviews which regard the book as an advertisement for Investor's Business Daily do have a point. However, there are many free search engines (stockpoint.com, marketguide.com) with which one can identify stocks satisfying the CANSLIM criteria. Similarly, there are a number of free online charting sites (clearstation.com, bigcharts.com) which give much of the same information as O'Neil's proprietary charting service. I've lost money the past few years, but I haven't lost much, thanks to the fact that I've been mostly in cash, which puts me way ahead of most professionals. William O'Neil gives very, very good advice. |
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An American reader (MSL quote), USA
<2006-12-31 00:00>
First, I would have to comment that the criticism about IBD as a normal newspaper is unfair. Its analysis and opinions are encapsulated in the numbers, systematically compiled for any common stocks worth considering as investments. Any individual investor would see that at one dollar, IBD is a bargain. "How to Make Money in Stocks" is the guide to understanding the ratings of IBD, as well as a clear introduction to O'Neill's investing philosophy. The prevailing market conditions are very important to the success of CANSLIM, and reviews of the book written in the depths of the 2000-2002 stock funk may be colored indeed.
I, too, had some questions about "pivot points," etc. that seem sparsely described. This is because you are supposed to look at the charts. If this isn't enough, look at more charts (the book has plenty). "Pivot points" and "accumulation" are not exact concepts, so one has to practice looking at the chart and acquire an understanding of these concepts. "How to Make Money in Stocks" is one of those rare books that relies on the graphical presentation of data as much as copy writing to communicate its sometimes fuzzy ideas.
This book is superb at describing the CANSLIM method on analysis, which can be done these days with free internet sources. An excellent description for novices of investing research.
My advice would be to pick up this book, read it, buy a copy of IBD, and keep track of ten or so stocks for 60 days or so. If the market goes up and these stocks don't, look for a better method. If you need more comforting words in the newspaper to guide your money decisions, drop this stuff and hire some investment professional. |
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John Zones (MSL quote), USA
<2006-12-31 00:00>
Successful investing requires that you focus on a system that you identify with. It has to fit your personality or you won't succeed. Many of the concepts in this book contradict the common wisdom; ideas like, diversification is bad and dollar cost averaging is stupid will make many investors uncomfortable. Before embarking on this system make sure you have the temperament for this approach.
Even if you don't decide to engage in this approach the book contains many useful investing ideas/tools. There is a discussion on when to sell. There are great concepts on cutting losses quickly, take the hit and get into something productive.
Another interesting thing that happened - after reading the book I culled my portfolio and sold everything that was a looser and/or under performing. This moved over 1/2 of my portfolio into cash. The interesting thing was that the portfolio immediately started going up in value! Of course this makes sense because the losers aren't pulling down the winners any longer.
If you get nothing else out of this book remember to cut losses quickly and don't be afraid to sell at a loss so you can get into something better. |
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Steven Powell (MSL quote), USA
<2006-12-31 00:00>
I have been utilizing William O'Neil's CANSLIM method of investing for several years with great success. I don't really understand the negative reviews that have been showing up here for the last year. Some reviewers complain that they have lost a great deal of money the past two years by following O'Neil's method. Evidently they did not read (or apply) Chapter 9: When to Sell and Cut Your Losses. In other words, they were not following O'Neil's advice. O'Neil is very clear on the importance of cutting your losses. Also, O'Neil provides a clear framework for exiting the market (Chapter 7: Market Direction: How to Determine It). There were several clear indicators that the market had topped in 2000. These indicators are clearly addressed in Chapter 7 and would have enabled anyone to get out of the bubble market with the majority of their profits. Personally, I have been out of the stock market since October 2000 (and making a nice return in bonds). I'll move back into stocks when the market returns to a sustained uptrend. It's not O'Neil's fault that people succumb to human nature and do the exact opposite of what he teaches in his book and in Investor's Business Daily. I guess we all need someone else to blame for our own shortcomings and greed. If you want to take responsibility for your own investing results, then read this book and patiently apply the principles it teaches. Otherwise, let a money manager or stockbroker make your decisions for you (good luck!), or simply stay out of the market. |
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Steve (MSL quote), USA
<2006-12-31 00:00>
This is the best book on Investing that I've read and this is the system that I follow for the most part. O'Neil is one of the best investors / traders and is worth over 200 million for a good reason; follow his system. I've been using this system for many years and after a large sample size of trades I've made large percentage gains. For example, my last big winner was TASR which I found beneath the radar and before it was hyped by mass media; it was a technical chart pattern that O'Neil talks about called a High Tight Flag; I trippled my $ on margin in one month. Some say that what I did is dangerous or risky but I was ready to take a 3% - 5% loss quickly if I was wrong. This was a small price to pay for the upside potential. Besides having several winners and a few super winners, I've also had quite a few losers which are part of the cost of being a trader. Buy this book and attend his seminars; you won't regret it. |
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An American reader (MSL quote), USA
<2006-12-31 00:00>
The book was well written and I have no doubt many could use the advice to profit. I would like to select stocks based on my own knowledge and O'Neil does deliver with that information. I am glad I read it.
I found reading page after page of how to use the Investor's Business Daily website to be distracting. O'Neil even devotes a chapter to navigation of his website. This could be called a good "hook" but in fact the website is excellent. Unfortunately, you must pay to access the information beyond a free trial period.
The book is not really geared for the swing or day trader. Day traders and swing traders do not care what a stock's balance sheet looks like, they care about short term profitably and price movement. However, it will still help to narrow the list of stock candidates that have a low risk and high potential. Because of this, it remains a "recommend" for those types of traders.
The book is primarily for someone who is an investor. It is for someone who wishes to build a portfolio of stocks most likely to deliver an excellent return on investment over time. The primary tool used will be the IDB website and the book as a reference guide. After reading the book, you will not need a broker to choose where to put your money. You will not need the IDB website either but its time-saving value is apparent.
The book includes a coupon for 2 weeks free use of the Investor's Business Daily. However, (at least for now), you can sign up for one month free without purchasing the book so the coupon is not really needed. If an additional IDB month free subscription for readers of How To Make Money In Stocks: A Winning System in Good Times or Bad was included, I would not hesitate in giving it a 5 star rating. |
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Juan Highland (MSL quote), USA
<2006-12-31 00:00>
I am one of those who think that common people should not invest in particular stocks. Be a successful stock-picker is not an easy task and unfortunately most people don't have the time and patience to achieve good results.
Another problem for the common investor are Mutual Funds, most of them charge high commissions for supposed great management but in reality most of them can't outperform the indexes. The darts thrown at the Wall Street Journal constantly outperform most of the Mutual Funds in the US.
Indexed funds or Exchange Traded Funds offer better alternatives for common investors paying low-commissions. Firms like Vanguard offer some of the best products in the market at decent prices.
But if you have some extra bucks and time and want to explore the stock market this might be a good book to start with.
I like O'Neil's method, is a Techno-Fundamental approach that combines Growth (not Value Investing despite some comments I see in this board) and Trend-Following, it provides a strategy to find talented stocks, that are growing, leading their sectors, hot, with promising future, the time to buy them, and an exit strategy either the trade went well or not. This last point is very important because most methods you find only tell you what to do when trades go your way.
Before reading this book I would suggest you to read How I Made $2,000,000, by Nicholas Darvas, is a far more simpler book to understand and if you understand and like it you can proceed to read this one which I find to be the 2.0 version. And if you get hooked by the idea you can read the Investor's Business Daily, the newspaper from which O'Neil is the founder, in that way you will never walk alone. |
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Ashwini Aragam (MSL quote), USA
<2006-12-31 00:00>
You can't beat 50 years of research and most of it hands on. Unlike other research that just analyzes past data without ever getting hands dirty, successful investor and founder of Investor Business Daily's William O' Neal presents what most fundamentals-only and value investors find hard to believe - average cost up; forget low p/e stocks, don't buy and hold forever, technical analysis matters as much as fundamental analysis, markets can be timed, etc. The list gets more incredible for such investors.
After investing for more than 8 years, I happened to find this book. I don't blame myself, instead I consider myself fortunate - better late than never! The CANSLIM approach sure sounds like good investing criteria to seive out possible candidates, but that is not all. The key is to identify when to buy stocks and when to sell them. You will learn about pivot points - points when to buy stocks - along with high quality criteria to consider before buying.
While I started of as a fundamental and value investor, I have slowly started to pay attention to technicals and that has paid off more. Thus this book has more relevance at this stage of my investing career.
The first part of the book clearly explains the CAN SLIM approach with numerous examples and first hand accounts of big-wigs failing ignoring market signals. The second part is the gem - it highlights nineteen common mistakes most investors make, when to sell and cut losses, when to sell and take profits, etc. Even if you don't believe in the CANSLIM approach, this part is a must read for any investor. The last part gives you sound advice including how to use IBD and the web site to identify winning stocks, examples of great winners of the past with extensive chart analysis.
If you are just beginning to invest and find it hard to believe in this approach, just follow one of the rules in the book - don't take more than a 7-8% loss. That alone will keep you up from the most common misery in investing. If you are convinced, however, let this book not be just another book you read. There is too much practical advice to ignore. However, keep in mind - this book is about buying the right stock at the right time. The timing is key here; very, very few people can time it right most of the times. Good luck, anyway! |
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Steve Burns (MSL quote), USA
<2006-12-31 00:00>
William O'neal covers all major stock trading areas in this book: how to find a broker, his CAN SLIM method for making money on stocks, When to sell,how to diversify, when to buy options, he shows charts of the biggest stock winners from 1953 to 1993, how to read stock price history charts and much more. It is a lot of information to take in and is not for beginners. I would advise reading "The neatest little guide to the stock market" before reading this book if you are just starting out in the land of individual stocks.
Here is a summary of his CAN SLIM method to making money in the stock market, this is how to buy stocks:
C= Current quarterly earnings:are they enough?
A=Annual earnings increases:do they have meaningful growth?
N=New products,New management,New highs:is it time to buy?
S=Supply and demand:Small capitalization plus big volume demand equals price increase.
L=Leader or Laggard:Only buy leaders.
I=Institutional sponsorship:A little will drive up price.
M=Market Direction=How to determine it and follow.
The final chapter is 18 common mistakes most investors make, this is excellent advice for what not to do.
This book's author believes in buying for growth with little regard to actual value or P/E ratios. He justifies this by showing all the the big misses a value investor would have had not buying hot stocks over the years because a value investor would have thought they were over valued, when they were priced at a premium due to growth factors.
Great book I highly recommend. |
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