Meetup Manual: Recommended Reading

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Dallas Area Investor’s Business Daily Meetup

FIRST-TIME VISITORS

Welcome!

Join local investors at the monthly Investor’s Business Daily Meetup

Discuss using IBD tools

Review current trends

Analyze stocks that are hot right now

Learn how to protect your winnings

Meet other investors to discuss stocks with after the meeting

 Learn from others’ mistake so you don’t have to make the same ones.

DALLAS Join the Dallas Meetup at http://www.meetup.com/ibd-265/calendar/list/

Usually on the fourth Wednesday of each month from 6:30 – 8:30.

FORT WORTH Join the Fort Worth Meetup at http://www.meetup.com/ibd-307/

Usually on the fourth Thursday of each month from 6:30 – 8:30.

Questions?

Call your IBD Meetup Leader, Charlotte Hudgin 214-995-6702

Why did I chose this picture?

Wishing You “Many Happy Returns,”

Charlotte Hudgin

214-995-6702

Dallas-Plano IBD Meetup Join us at www.IBD.meetup.com/265

Questions? Call Charlotte Hudgin, 214-995-6702, IBD Meetup Facilitator Rev 2010-12-**30 Page 1 of 8

Dallas Area Investor’s Business Daily Meetup

Welcome to the Dallas Area IBD Meetup

Purpose: Investors of every skill level come together to learn and discuss the highly profitable, conservative CAN SLIM style of investing in the stock market.

IBD Meetup: Recommended Reading

2010 November

To understand the CAN SLIM Investment System, you need to carefully read William O’Neil’s book How to Make Money in Stocks , probably annually. Take notes and use the book as a future reference. Additionally, for those who would like to delve deeper into the world of stocks and further sharpen their investing skills, below is William O’Neil’s recommended reading list:

How to Make Money in Stocks (Orange book is current version) - William J. O'Neil

24 Essential Lessons for Investment Success (and every other WON book) - William J. O'Neil

Reminiscences of a Stock Operator - E. Lefevre (This was originally a series of articles in a

New Yorker magazine - get the big book to get all the original cartoons!)

How I Made Two Million Dollars in the Stock Market – Nicholas Darvas

How to Trade in Stocks – Jesse Livermore One Up on Wall Street - Peter Lynch

The Battle for Investment Survival - G.M. Loeb My Own Story - Bernard Baruch

Tape Reading and Market Tactics - H. Neill How to Buy Stocks - Louis Engel

CAN-SLIM is a conservative, proven high-return style of investing that choses stocks of profitable, growing companies then looks at their charts to find the optimal signal to purchase and sell.

CAN-SLIM is a seven letter word that represents the seven steps to finding these winning stocks. The seven steps plus shortcuts to each are listed on the next CAN-SLIM page.

CAN-SLIM relies on using the proprietary ratings developed by Investor’s Business Daily and shown in the IBD nightly newspaper as well as on the Investors.com web site.

Extensive, free education is available at Investors.com under the “Education” tab.

Dallas-Plano IBD Meetup Join us at www.IBD.meetup.com/265

Questions? Call Charlotte Hudgin, 214-995-6702, IBD Meetup Facilitator Rev 2010-12-**30 Page 2 of 8

Dallas Area Investor’s Business Daily Meetup

Here’s a great place to start looking for good stocks to buy – CANSLIM from Investor’s Business Daily Newspaper and www.Investors.com

1)

Find stocks from companies that are financially successful (see checklist).

William O'Neil's 7 steps to investor bliss

IBD/

Investors.com

Ratings

Current earnings per share should be up 25% or more.

C

Accelerating earnings in recent quarters is stronger. Quarterly sales should also be accelerating over prior quarters up 25% or more. EPS >= 80

SMR = A, B

A

Annual earnings per share should be up 25% or more in each of the last three years. Annual return on equity should be 17% or more.

N

The stock should be emerging from a sound and proper chart base and about to make a new high in pric e .

A company with a new product or service that sells rapidly and is causing earnings to accelerate has an advantage.

Proper Base

Breakout on

Volume, New product

S

Supply and demand .

Volume should be sufficient for easy exit.

Lower volume stocks are more likely to generate higher returns faster.

Avg Daily Volume

>300,000 shares/day

L

Leader or laggard Buy the leader in a leading group. A stock's

Relative Price Strength Rating should be 80 or higher. This rating can be found in Investor's Business Daily

RS >= 80

Ind Grp RS >= 80

Price >=$15

I

Institutional sponsorship should be increasing in recent quarters with at least one or two better-performing mutual funds having bought it in their latest report.

Accumulation/

Distribution =

A or B

The market must be in a confirmed uptrend.

M

The nightly ARMCHAIR INVESTOR newsletter will help you understand market direction. www.ArmchairInvestor.com

Market in

Confirmed Rally

2)

Be sure to only buy at the correct buy point

– a breakout on 150+% of average volume or other add-on buy point.

CANSLIM is only a summary of how to buy great stocks likely to show big gains. William

O’Neil’s full investment system also involves how to sell to book profits and how to protect your portfolio against losses . Refer to the GREEN (2010) edition of

“How to Make Money in

Stocks” by William O’Neil and www.investors.com

for more training.

Dallas-Plano IBD Meetup Join us at www.IBD.meetup.com/265

Questions? Call Charlotte Hudgin, 214-995-6702, IBD Meetup Facilitator Rev 2010-12-**30 Page 3 of 8

Dallas Area Investor’s Business Daily Meetup

Dallas-Plano IBD Meetup Join us at www.IBD.meetup.com/265

Questions? Call Charlotte Hudgin, 214-995-6702, IBD Meetup Facilitator Rev 2010-12-**30 Page 4 of 8

Dallas-Plano Investor’s Business Daily Meetup

Dallas-Plano IBD Meetup Join us at www.IBD.meetup.com/265

Questions? Call Charlotte Hudgin, 214-995-6702, IBD Meetup Facilitator Rev 2010-12-**30 Page 5 of 8

Dallas-Plano Investor’s Business Daily Meetup

Dallas-Plano IBD Meetup Join us at www.IBD.meetup.com/265

Questions? Call Charlotte Hudgin, 214-995-6702, IBD Meetup Facilitator Rev 2010-12-**30 Page 6 of 8

Dallas-Plano Investor’s Business Daily Meetup

Dallas-Plano IBD Meetup Join us at www.IBD.meetup.com/265

Questions? Call Charlotte Hudgin, 214-995-6702, IBD Meetup Facilitator Rev 2010-12-**30 Page 7 of 8

Dallas-Plano Investor’s Business Daily Meetup

Dallas-Plano IBD Meetup Join us at www.IBD.meetup.com/265

Questions? Call Charlotte Hudgin, 214-995-6702, IBD Meetup Facilitator Rev 2010-12-**30 Page 8 of 8

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