CANSLIM Stock Screener ( with free tools )

CANSLIM method is developed my William O'Neil. He is the author of the book How to Make money in stocks. He describes this technique on his book. But this technique can also be applied by using freely available web sites.

1. Start with the Market : Check the market direction from here, here, and here. You can check the dynamic yield curve from here. ( You can also read the general econmic outlook from here, but do not forget to act on your independent oponion. Never act on others suggestion or view).
   
2. Look for strongest stocks in the strongest sectors from here. You can check the market carpet as well. Find stock which are making their 52-week high from here. Filter stocks which are not in your favourite list. (You can also read the general sector outlook from here,but do not forget to act on your independent oponion. Never act on others suggestion or view).
3. Look for the leader in the strongest quarterly earnings growth in the industry from here.
4. Check the the percent of shares held by the institutions from here.
5. Check the annual earnings growth rate from here.
6. You can check the key developments about the company from here, and here.
7. Buy the stock which has a cup and handle price pattern.

Do not forget money management techniques. Always plan your entries, exits, and price target before entring a trade. Do not change the rule of the game once your are in the game.

Further reading:
[1] My CANSLIM investing blog entry
[2] How to Make money in stocks

EXITS

Exits are very important for traders. because they determine the point which you realize your profits are losses. Setting proper exists in uptrends help you to trade in the direction of the market and prevents early exists. You have to determine your exit method that you will use BEFORE entering any trade and adhere to that plan. Do not change your plan once you are in the middle of the game!.

The following list shows different types of exit methods.

• Profit target : Exit if the market reaches to your target
• Time-based : Exit if your are in the market for a pre-determined time. e.g. 3 days
• Signal-generated: Exit if your indicator gives a sell signal e.g. price drops below 200days moving average
• Trailing : Adjust able stops. e.g. increase your stop upwards as the market moves upwards
• Pivotal juncture : Exist if market approaches to a critical target such as trendline, etc..
• Money management: Closes out a trade at a specified % of adverse movement.e.g. 2% loss
• Volatility: Risk level is increasing due to rising market volatility. Exit half of your position to protect half of your profits.

Resources:
[1] Exits: The Forgotten Component, (05/28/02),Ph.D RM Sidewitz, www.workingmoney.com
[2] A New Look at Exit Strategies, Charles Le Beau
[3] Classic Indicators, Linda Raschke