Why Positional Trading?
While intraday trading provides daily cash flow, real wealth is built through positional trading. Holding stocks for weeks or months allows you to capture 20%, 50%, or even 100%+ moves in high-quality companies.
The CANSLIM Method
To find multi-bagger stocks, we use the CANSLIM method popularized by William O'Neil:
- C (Current Earnings): Look for stocks with 25%+ quarterly earnings growth.
- A (Annual Earnings): The company must be consistently growing its profits every year.
- N (New Product or Management): Something new must be driving the growth.
- S (Supply and Demand): Institutional accumulation is key.
- L (Leader or Laggard): Only buy the leaders of the sector.