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CONTENTS
FOREWORD
How to Make Money in StocksGetting Started is an important book for all investors.
If youre new to the stock market and unsureperhaps nervousabout how to begin investing, Matts book may be the missing link youve been looking for. Youll find a step-by-step game plan with checklists and routines to make sure you start out right. More experienced investors can reference these same strategies and tools to streamline their routines and further improve their returns.
From the time I founded Investors Business Daily in 1984, weve focused on education, knowing that anyone with a desire to learn can become a successful investor. Since then, countless people from all walks of life have used IBD and the CAN SLIM Investment System to achieve significant results.
I first met Matthew Galgani a decade ago when he came to us to help market IBD to more investors. He also had a strong desire to master the CAN SLIM System to build his own financial future. Matt began attending dozens of IBD workshops around the country, then went on to help establish and expand the IBD Meetup program in its early stages.
Since then, he has been involved in several pivotal educational products, including co-hosting IBDs weekly radio show, editing the IBDextra Newsletter, and creating IBD TV videos. Matt also helped me develop the IBD Meetup Investor Education Series, a 13-part course created specifically for Meetup members. Each month, those interactive lessons are used by local groups all over the nation and are one of the best ways weve found to help investors establish a clear plan for making money in the market.
Getting Started is a natural complement to my earlier work, How to Make Money in Stocks. Matts book helps you take those crucial first steps while creating proper investing habits that help you build wealth over time. No one becomes a successful investor overnight. Like all skills, investing takes time and effort to learn. But anyone with patience and perseverance can do it. The key is to follow a sound plan and never give up.
Ive read this book carefully and can tell you that in the pages ahead, youll discover an investing plan that works. The rest is up to you. I have no doubt that if you study and stick to the rules outlined in Getting Started, you can benefit greatly.
Understand that you do not need to do this on your own. IBD is here to help you every step of the way with free educational resources, including the IBD Meetup program, product training, IBD TV videos, and more. If you ever have any questions, call our toll-free educational hotline (800-831-2525) to get the help you need.
Were wishing you the very best in your investing journey.
Sincerely,
William J. ONeil
Chairman and Founder
Investors Business Daily
INTRODUCTION
This is a book about taking action. About taking specific steps to get started on your path to making more money in the stock market.
Let me start with a little story about my own journey...
Before I began investing in the mid-1990s, I read several books about the market. They were definitely helpful in terms of deciding what to buy.
It wasnt until later I realized something was missing.
They didnt address the otherequally importantpieces of the puzzle: When to buy and when to sell.
But at the time, I was making money. And when youre making money, who needs sell rules?!
The rise of personal computers, the Internet and cell phones had launched an explosive bull market, and I was making 35% one year, 40% another. Like millions of other investors, my strategy was basically to buy and just hold on for the glorious ride.
But in reality, I was blissfully unaware of my own ignorance.
I didnt know that in a bull market, the vast majority of all stocks go up. So while I may have thought
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