CANSLIM Method
Master the "Super-Performer" Strategy. Learn the fundamental and technical blueprint for finding explosive growth stocks.
Professional System
Fundamental + Technical
Classic
The CANSLIM Acronym
Each letter represents a non-negotiable rule for identifying high-growth candidates:
- C - Current Quarterly Earnings: Focus on companies with significant (25%+) recent earnings growth.
- A - Annual Earnings: Look for consistent annual growth over the last 3-5 years.
- N - New: New products, new management, or new industry highs—what is the "catalyst" for the growth?
- S - Supply and Demand: Look for limited supply (low float) and high demand (high volume accumulation).
- L - Leader or Laggard: Only buy the #1 or #2 leader in a specific industry. Avoid the laggards.
- I - Institutional Sponsorship: Follow the "smart money." Look for stocks with increasing mutual fund and institutional ownership.
- M - Market Direction: The most important rule. Never trade against the trend of the broader market index.
Strategic Integration
CANSLIM isn't just about picking a stock; it's about timing the market. You combine the first 6 letters (Fundamentals) to create your watchlist, then use the 7th letter (Market Direction) to decide *when* to execute. A great stock in a failing market is a losing trade; a great stock in a healthy market is a super-performer.