What is the CANSLIM method?

Asked 4 years ago

I read the word CANSLIM while looking for growth stocks to select. Is this to do with online investment strategies, or is it something else? If it is an investment strategy, can someone please explain to me how it works?

Canslim

Andrew Moran

Saturday, September 04, 2021

The CANSLIM (or CAN SLIM) method is for investing in the stock market.
The CANSLIM model utilizes the following criteria in the trading strategy:
C: Current Earnings
A: Annual Earnings
N: New Products or Management
S: Supply and Demand
L: Leaders
I: Institutional Ownership
M: Mark Direction
These are marketed as market-beating metrics to increase the profit levels of your overall portfolio. And, if you comb through institutional funds that are fully invested in both technical analysis and the fundamental analysis technique to generate returns, you will see that many of their high-growth stocks contain elements of the CANSLIM bullish strategy.
Considering how fast markets can be, you need simple key metric indicators to determine your next investment and entry and exit points.
You can apply it to any aspect of the stock market.