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Canslim Stock Trading System for Traders

Canslim Stock Trading System for Traders

Stock traders across the globe look for new trading strategies to profit from market. Trading strategies largely differ according to traders’ profit goals, type of trading, risk-tolerance, account size and personal preferences. CANSLIM is one of these trading strategies, which is considered as highly successful for most traders. CANSLIM is most beneficial for long-term traders and investors.

CANSLIM is actually a stock screening strategy, developed William O’Neil. It is a growth stock investing strategy (strategy of investing in stocks of growing companies) which combines both fundamental analysis and technical analysis to screen stocks. CANSLIM trading system aims at buying good growth stocks before a major price rise.

CANSLIM is an acronym of various indicators/features to be considered when screening a stock for trading.

‘C’ Represents Current Earnings: For any stock to be qualified as a CANSLIM stock, it should have great increase in current earning per share; more than 18%.

‘A’ Represents Annual Earnings: CANSLIM stocks should have high increase in annual earning per share; more than 25% for; more than 25% for last three years.

‘N’ Represents New: There should be something new related to the stock. CANSLIM traders look for companies which are under new management, or introduced new product, or undertaken new project or of which stock have touched a new high.

‘S’ Represents Supply/Demand or Shares Outstanding: Good CANSLIM companies should have less shares outstanding; less than 25 million shares is good, less than 5 million is better. The less the number of outstanding shares the greater the chance of upward price movement for every good news.

‘L’ Represents Leader: Trading stocks of leading companies (leaders of an industry or market) is better than trading stocks of followers; and every market should have at least one leader.

‘I’ represents Institutional Sponsorship: There should be more than 3 institutional traders or mutual funds interested in stock you are choosing. The greater the number of institutional sponsors, the larger their size are and the better their past performances, the better the stock.

‘M’ represents the market: Market timing is very important. Traders should use various technical analysis tools to predict and confirm trends, retracements and corrections. Buy when all major markets are going up.

CANSLIM stock trading system has proved more effective than most other long-term trading strategies. It considers various aspects of company, market and economy to make most accurate trading decisions at right time. But success of CANSLIM trading strategy require vastly on traders knowledge, his access to market data and strict following of rules.

NobleTrading stock trading and investing blog is a daily updated resource for novice and expert stock traders. Get informed about different markets, trading strategies, charting techniques, indicators and portfolio management. Get more info on CANSLIM stock trading system.

Article from articlesbase.com

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New to Stock Trading? Here’s How to Control Your Risk!

by OptionsHouse

New to Stock Trading? Here’s How to Control Your Risk!

Getting started in stock trading can be nerve-wracking for a new investor. On the one hand, you want to jump in and start seeing your portfolio make money, but on the other you don’t want to lose your hard-earned cash.

Here are a few ways to control your risk when you’re new to stock trading.

Be sure you’re ready – Don’t even think about investing until you know you’re absolutely ready. When you’re new to stock trading, be sure you have all of your other financial bases covered before you jump in. Try to have at least six months savings in the bank and cushion your investment account with an interest-bearing CD or money market account.

Insurance is also a good thing to have when you’re new to stock trading. Be sure you have each of these things in place first.

Could you sell it? – When you’re new to stock trading, you should never purchase a stock or invest in anything that you don’t feel you could turn around and sell. This is one way those who are new to stock trading end up making false moves. Avoid it by not buying anything you feel won’t sell later or that you’re somehow emotionally invested in.

Know when to hold back – Investing aggressively should only be done in the short term. When you’re new to stock trading, you want to hit the ground running, but a good way to protect your money is to be aggressive in the short term and conservative in the long run.

Stocks are great for achieving long-term goals. Short term goals – meaning less than 3 years – are better for investing through CD’s or money markets.

Go with your gut – Never invest in something you don’t feel 100 percent sure about. Even when you’re new to stock trading, if a certain stock or investment makes you uneasy, don’t go for it. Explore all of the stocks’ strengths and weaknesses before you make a decision.

While it’s true that with great risk comes great reward, you should never take major risks with major chucks of money. It’s one way to look smart even when you’re new to stock trading.

Finally, always be on the lookout for scams when you’re new to stock trading. Only deal with legitimate, well-established firms (if you choose to go that route), don’t ever buy what you don’t understand, and remember that if a deal is too good to be true – extremely low-priced stocks or investing in precious metals comes to mind – it probably is.

Free share market trading video reveals these simple but very powerful techniques to taking the confusion out of any market. Get it at http://www.tradingandinvesting4u.com

Article from articlesbase.com

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