IBD Method of Investing

IBD is Investor's Business Daily, founded by William O'Neil. O'Neil created the CAN SLIM(TM) method of investing, which combines fundamental and technical analysis, and teaches sound buying and selling rules. I found that there were a lot of facts to remember and I created these flash cards to help people learn IBD's method of investing and remember the facts so they could be more effective.

Disclaimer: This is not a solicitation to buy or sell securities. Investing and Trading is risky. I have tried to make these cards factually correct, but I can make no guarantee of the accuracy or completeness of this material. This is just a fraction of what you need to know to be a successful investor anyway. If you want to be a successful investor, I suggest reading a lot of books and joining a local stock group. Check meetup.com for Investor's Business Daily meetups.

CAN SLIM(TM) is a trademark of Investor's Business Daily.

Thank you to ProProfs for this site and for hosting these flashcards.

24 cards   |   Total Attempts: 188
  

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Cards In This Set

Front Back
What's the purpose of a handle in a CwH?
To shake out weak holders.
You see a cup on a chart. There are valid ones and invalid ones. What is the key factor that makes a cup valid?
It must have a prior runup of 30% * IPO's are an exception
What is a Follow Through Day (FTD)?
When a major index (DOW, NASDAQ) goes up 1.7% on higher volume than the day before.
How reliable are FTD's (Follow Through Days)?
They work 70% of the time. They fail 30% of the time.
Which of IBD's stock patterns is most associated with the big winner stocks?
CwH - Cup with Handle
What is a Base on Base formation?
When a stock runs up less than 20% and consolidates again.
What does CAN SLIM stand for?
C- Current EPS A- Annual EPS N- New S- Supply and Demand L- Leader/laggard I- Institutional Sponsorship M- Market
Say more about the C in CAN SLIM(TM):
- Stands for Current EPS - - Triple digit even better
What are the types of bases according to IBD?
- CwH - Cup with Handle - Cup without Handle - Saucer with Handle - Double Bottom - Flat Base - Ascending Base - Base on Base
Say more about the A in CAN SLIM(TM):
- Stands for Annual EPS
What is the minimum length of a CwH?
7 weeks
What is the maximum length of a CwH?
65 weeks
What should happen to volume in a proper handle?
It should dry up. (Handles should be quiet).
What is the maximum correction of a valid cup?
The correction from peak to trough should be
What is a Saucer with Handle?
Like a CwH, but the correction is only 12-20%