How to Make Money in Stocks: A Winning System in Good Times or Bad by William J. O’Neil

PART I
 A Winning System: CAN SLIM®

INTRODUCTION
 You Can Learn and Benefit from America’s 100 Years of Super
 Winners
 After the market debacles of 2000 and 2008, most investors now
 know that they need to take charge and learn much more about what
 they’re doing when they save and invest their hard-earned money. However,
 many investors don’t know where to turn, whom to trust, or what they must
 stop doing if they are to achieve dramatically superior investment
 performance.
 You don’t have to give your money to a Bernie Madoff, who’ll take it but
 won’t tell you exactly what he’s doing with it. Instead, you can and should
 read a few good investment books, attend some investment classes, or
 participate in an investment meet-up group so that you can learn how to
 invest with real confidence. At the very least, you should learn and
 understand well the sound principles and proven rules and methods that will
 protect and build your investment portfolio over time. Half of all Americans
 save and invest; now it’s time to learn to do it intelligently with critical
 knowledge.
 When I started investing, I made most of the same mistakes you’ve
 probably made. But here’s what I’ve learned:
 You should buy stocks when they’re on the way up in price, not on the
 way down. And when you buy more, you do it only after the stock has
 risen from your purchase price, not after it has fallen below it.
 You buy stocks when they’re nearer to their highs for the year, not
 when they’ve sunk so low that they look cheap. You buy higher-priced
 stocks rather than the lowest-priced stocks.
 You learn to always sell stocks quickly when you have a small loss
 rather than waiting and hoping they’ll come back.
 You pay far less attention to a company’s book value, dividends, or PE
 ratio—which for the last 100 years have had little predictive value in
 spotting America’s most successful companies—and focus instead on

How to Make Money in Stocks: A Winning System in Good Times or Bad by William J. O’Neil