Investors Business Daily Review: Investors Business Daily (IBD) is a United States newspaper and website. Bill O’Neil founded the newspaper Investor’s Business Daily in 1984. Investing is not easy. However, if you’re willing to spend time (and money) to master the CAN SLIM strategy, Investors.com will get you there.
I must admit, I have a little penchant for Investor’s Business Daily (IBD). Why? Because of the book “How to Make Money in Stocks” by William J. O’Neil.
What does it have to do with Investor’s Business Daily you ask? Through that book, I discovered investors.com, the home of IBD and the reason for my affinity with this Investors Business Daily review.
In fact, this is where I first learned some of the ‘fundamentals’ of investing. Let’s try to address some common questions about this service such as “What is Investor Business Daily?”.
“How much does IBD Leaderboard cost?”. “How much is a subscription to MarketSmith?”
The newspaper printing is weekly. However, the website publishes business news daily. Investor’s Business Daily is a leader in financial news and research, helping investors find top-performing growth stocks.
O’Neil, who is the author of a dozen books, including the best seller “How to Make Money in Stocks”, is the creator of the CAN SLIM investment strategy. Maybe you’ve heard of this approach.
It was made famous by Dan Zanger, who apparently grew $10,000 into millions of dollars during the dot-com bubble.
When you read that kind of performance, you probably want to find out what it’s about. CAN SLIM is an acronym for growth stock investing strategy. It was developed by Bill O’Neil who compiled a database of every stock traded in the US since the 1880s.
In fact, after studying the data, O’Neil saw that winning companies had the same seven traits in common. As a result, that’s the basis of the CAN SLIM Investing System on which all of IBD’s products and features are based on.
The IBD website, investors.com (not to be confused with investing.com), will be your best source if you want to dig deeper. It doesn’t involve day trading much.
However, the strategy combines fundamental with some technical analysis particularly the “cup-with-handle” chart pattern. In fact, day traders may actually benefit from understanding the Investor’s Business Daily methodology; as it may improve their stock picks.
Hence the reason for this Investors Business Daily Review.
The fundamental philosophy of William O’Neil is that investors should buy stocks for their growth potential, not for the sole purpose of buy and hold. For that reason, it may be more suited for swing traders and short-term investors.
As a result, Bill O’Neil says, “The secret is to hop off the elevator on one of the floors on the way up and not ride it back down again.” Investors business daily line of products is all based on the CAN SLIM system.
Some of these products have dramatically outperformed the S&P 500. In 2017 for example, IBD’s Sector Leaders Index beat the S&P 500 by 300%.
A little warning for traders who prefer to stay away from higher-priced stocks, CAN SLIM tends to lean towards established large-cap stocks; often with a high price and a high float. Those may not move as much percentage wise on a very short-term basis.
Keep in mind also that, to use O’Neil’s analogy, not all elevators go up at the same speed when you ride the stock market. As a result, some elevators go down faster than going up; regardless of the size of the float or the market cap (watch us do trading live streams each day in our chat rooms).
According to the IBD approach to making money in stocks, it requires similar routines as making money with day trading. You must recognize your biggest mistakes in order to correct them.
Then adjust your rules accordingly. Pay attention to the market conditions. For example, when the market is volatile and choppy, you may want to book your profits sooner to avoid giving them back.
In fact, as Investor’s Business Daily strongly recommends, check in daily! In other words, watch the market every day. Do you see the similarities with day trading? IBS servers the active investor and trader very well.
When I started day trading, I was looking for a winning system. Who isn’t? The tagline of the book “a winning system in good times or bad” really got my attention.
There were bad times for a long time. In fact, trading can be hard. However, it’s a lot harder if you are not prepared and educated.
Trading is not for everybody either. The Bullish Bears team are straight talkers. If you want to become a successful trader, then it’s going to take time and hard work.
The good news is that the Bullish Bears probably have the most complete and least expensive education available to learn stock market trading and become a profitable trader.
The Bullish Bears trading service isn’t about the money. We’re all about helping you and growing a community of traders that support each other. Are you ready to start?
I have tried IBD’s swing trader service and I must say it’s pretty simple to follow and trade. If you’re OK with the occasional stop out (it happens to EVERYONE), and 1-5% gains with swing trading the actual stock, its a pretty good system they have.
They show you where they are looking to enter, why they are looking to enter and what the game plan is. Reading all this will have you learning from their explanation and trade plan while you trade.
IBD recaps their trades from their swing trader system and annotates their charts very well on their blog.