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

The CANSLIM Method of Selecting Stock

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.