William O'Neil is one of the greatest stock traders of all time. He was born and raised in Texas (USA). He graduated from Southern Methodist University with a bachelor's degree in business administration.

Here, he developed the famous stock investment method CANSLIM, after studying past data of strong-growth stocks. William J. O’Neil popularized this investment approach in his book The Model Book of Greatest Stock Market Winners and is still in use today in his company.


1. Stop loss at 7%

Each successful trader has a limit of risk, and for William O'Neil, it is 7%. He has a rule of thumb that no more than 7% per transaction is lost. If the share price fell more than 7%, he would definitely exit the market without hesitation.

And so should we, always have a fixed limit of risk, making it the principle of trading. This simple rule can keep us from unnecessary losses.


2. Take profit at 20-25%

Not only is there a limited risk, so too are returns. Traders need to know when to withdraw from the market while still making a profit. That William O'Neil's limit is 20-25%.

Understanding this will limit greed as well as many poor trading decisions for Traders.

3. Let profits run for at least another 8 weeks if stocks rise 20% for 3 weeks

Utilizing strong market dynamics to increase profits is one of the trading techniques that help traders make great profits. And William O'Neil used this technique to increase his profits.


4. Buy shares after a correction

This way of trading we often call it that trade pullback. This is a big trend trade, with low risk but high potential for profit. The key lies in the way money is traded and managed.

So, if you want to make a big profit in trading, then we should follow the big market trend as William O'Neil used to do.

5. Respect the principles in CANSLIM

He is the one who developed the famous securities investment method CANSLIM. It is this method that has helped him make money in the stock market. CANSLIM means:
  • C - Current quarterly earnings per share - EPS
  • A - Annual earnings growth
  • N - New products, New Management, New Highs
  • S - Share outstanding
  • L - Leading industry
  • I - Institutional Sponsorship
  • M - Market direction