The Canadian Dollar and Its Strength The CANSLIM Stock Strategy and Earnings

The CANSLIM Method of Selecting Stock

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If using the CANSLIM method of selecting stocks, analyzing the overall direction of the market before deciding to make a purchase is the last step. Although CANSLIM is not truly a market timing strategy (where investors try to "beat the market" by buying stocks at their lowest and selling at their highest - at least in theory), it is important for investors to understand the basic environment of the stock market. For instance, investors who buy in just before a bear market emerges can literally be wiped out if they are not careful. While the long-term prospects may be bright, short-term losses will likely add up quickly. It may be years, if ever, before the stock prices recover to where they were when the investment was initially made.
Source: http://www.investorguide.com/igu-article-962-stock-strategies-the-canslim-stock-strategy.html