When it comes to building wealth through the stock market, few books have had as lasting an impact as William J. O’Neil’s How to Make Money in Stocks: A Winning System in Good Times and Bad. With more than 2 million copies sold and updated through multiple editions, the book has become essential reading for both beginner and experienced investors.
The core of O’Neil’s work is the CAN SLIM methodology, an investing strategy based on the analysis of over 100 years of stock market winners. Unlike systems that lean on speculation or complex derivatives, CAN SLIM combines fundamental and technical analysis to help investors identify high-potential growth stocks before they break out.
This detailed review takes a closer look at O’Neil’s system, explores its relevance in the current market environment, and explains how investors can use the CAN SLIM framework to navigate both bull and bear markets with discipline and clarity.
What Makes the Book Stand Out
One of the standout features of How to Make Money in Stocks is that it doesn’t rely on vague investing advice. O’Neil backs every claim with hard data, historical chart patterns, and real-world examples. The book is rooted in thousands of case studies of past market leaders, from Apple to Cisco to Netflix, and shows readers exactly what those stocks looked like before they skyrocketed.
This data-first approach gives the book lasting credibility. It’s not based on predictions or market hype. Instead, O’Neil shows that if you know where to look, winning stocks reveal themselves early, and often repeat similar patterns.
For serious investors focused on stock market analysis, technical setups, volume signals, and earnings growth, the book offers tools that remain highly applicable, even in 2025’s more complex macro environment.
Breakdown of the CAN SLIM System
C – Current Quarterly Earnings: According to O’Neil, top-performing stocks almost always show strong quarterly earnings growth before they begin a major move. The book emphasizes a benchmark of 20% or more in earnings per share (EPS) versus the same quarter a year earlier.
A – Annual Earnings Growth: Consistency is critical. O’Neil recommends focusing on companies with a solid three-year track record of annual EPS growth. This removes the guesswork from identifying genuine long-term winners.
N – New Products, Services, or Management: A powerful catalyst. New ideas, new tech, or even a leadership change can reignite a stock’s momentum. O’Neil shows how market leaders like Google or Amazon broke out following major product innovations.
S – Supply and Demand: The fewer the outstanding shares, the greater the potential price move when institutional buyers begin accumulating. O’Neil teaches readers how to use daily volume spikes as confirmation of a breakout.
L – Leader or Laggard?: This is about relative performance. Investors should avoid underperformers and focus on top stocks in the best-performing sectors. The book explains how to use relative strength ratings to find sector leaders.
I – Institutional Sponsorship: Big money moves markets. Mutual funds and pension funds provide the volume needed to propel stock prices higher. O’Neil urges readers to check for increasing institutional ownership before buying in.
M – Market Direction: Perhaps the most overlooked rule. Even great stocks fall in bear markets. O’Neil stresses that investors must align their trades with the broader market trend, using tools like the S&P 500 or Nasdaq Composite as guidance.

What the Charts Teach You
O’Neil’s book features over 100 annotated charts showing historical stock breakouts. These aren’t random picks, they’re deeply studied examples that prove his system works. Investors learn how to read base formations, recognize volume surges, and identify price action that precedes major rallies.
From cup-with-handle patterns to flat bases and double bottoms, How to Make Money in Stocks turns complex chart reading into a repeatable skill. For anyone studying technical analysis or seeking price pattern recognition strategies, this section of the book is invaluable.
Mistakes to Avoid: The 21 Investor Pitfalls
In addition to teaching what to do, O’Neil is blunt about what not to do. He outlines 21 classic mistakes that derail traders, like buying cheap stocks, ignoring loss-cutting rules, or failing to follow a plan.
Each mistake is supported by real examples. O’Neil’s tone is strict but fair: the market rewards discipline, not emotion. Traders who internalize these lessons dramatically increase their odds of staying in the game long term.
Does How to Make Money in Stocks: A Winning System in Good Times and Bad Work in 2025
With rate cycles shifting, AI stocks dominating headlines, and global uncertainty at the forefront, the value of a clear system has never been higher. The CAN SLIM approach doesn’t depend on timing news cycles, it depends on facts: earnings, demand, trend, and price confirmation.
This makes it a timely system for modern investors dealing with information overload. As passive index strategies become crowded and short-term sentiment whipsaws prices, O’Neil’s strategy offers clarity. It’s not about timing tops and bottoms, it’s about catching the middle of big moves.
Whether you’re screening for breakout stocks, learning stock risk management, or improving entry and exit strategies, the framework laid out in this book is a complete roadmap.
Final Verdict: A Must-Read for Any Serious Investor
How to Make Money in Stocks isn’t trendy, it’s timeless. It teaches discipline, sharpens analysis skills, and encourages self-reliance. For investors who want more than financial entertainment, this book delivers substance.
Even in a market shaped by ETFs, algos, and macro shocks, O’Neil’s principles still apply. The best stocks still show strength before they move. Volume still tells the truth. And price still leads the story.
If you’re building a strategy, or if you’ve been trading without a system, this book should be on your desk, marked up, flagged, and re-read.
For anyone serious about learning how to make money in stocks, not just in good times but in any market, O’Neil’s system is essential reading.