One investment strategy that is quite popular is CANSLIM. CANSLIM’s strategy appears in the book How to Make Money in Stocks: A Winning System in Good Times or Bad by William J. O’Neil. Reportedly William is able to make millions of dollars consistently using only this strategy. If considered, this strategy accommodates the use of Fundamental Analysis and Technical Analysis. Apart from that, you can also learn more investment strategies at AlphaBetaStock.com by reading investment news more often.

In principle, the CANSLIM strategy is used to look for growth stocks, namely stocks that have high-income potential with Fundamental Analysis. While Technical Analysis is used to find stocks with the most potential to move up quickly and at the same time determine when to buy shares by looking at the stock market conditions.

You need to know that CANSLIM stands for:

C = Current earnings
A = Annual earnings
N = NEW products / service
S = Supply & demand
L = Leader or laggard
I = Institutional sponsorship
M = Market indexes

Following are the stock selection criteria using the CANSLIM strategy:

C (Current Earnings)

Last quarter EPS should grow at least 25%

A (Annual Earnings)

EPS should grow at least 25% for the last five years in a row. ROE should grow at least 17% for the last five years in a row.

N (New product/service)

Companies should have new products or services that can be relied upon.

S (Supply and demand)

This principle recommends focusing on smaller issuers. It’s because the price of shares of small listed companies tends to move more significantly compared to large listed companies. In terms of the law of supply and demand (the law of supply and demand), large market capitalized companies require more demand than small capitalized companies to drive prices.

L (Leader or laggard)

If we have a large selection of growth stock stocks, it is recommended to choose the best stocks from the best industrial sector (the leading stock in a leading industry).

I (Institutional sponsorship)

Note the entry of smart money funds from large institutions. The entry of large institutions into certain shares may be an indication of the potential for future stock prices to rise.

M (Market indexes)

Purchases should be made when the stock market is bullish, which is indicated by a stock index pattern that is currently uptrend.