WILEY Trade Like an O′Neil Disciple: How We Made Over 18,000% in the Stock Market

This is a great book for those of us wanting a peak inside the world of William O'Neil. I found the book also very useful for guidance on trading like Mr. O'Neil with plenty of nice charts with very useful examples of when to buy and sell stocks. The book does a great job helping the reader understand how William O'Neil thinks from his frugality and trading methods to his major influences being Jesse Livermore, Richard Wyckoff, and Nicolas Darvas. This book contains the elements that are in the O'Neil books: buy expensive stocks not cheap ones. Do not average down in price add to your position only on the way up in price. Cut your losses quickly, your maximum loss should be 7%-8% with your average win being 20%. Let your winners run while they are acting right. Diversification is for those that do not know what they are doing. It is better to have a few of the best stocks and watch them closely. Let the winners run and cut the losers short. O'Neil believes in buying the best stock in one of the best industries with the best fundamentals and growth. However these stocks must be bought at the right time as they break out of established bases to new highs. However these stocks can only be bought in up trending markets. The basis of the O'Neil system is to do what really works in the market by studying the pasts biggest winning stocks and their chart patterns and fundamentals. The authors of this book were O'Neil's right hand men for many years both managing internal portfolios for his company and giving seminars with Mr. O'Neil. Kacher and Morales had cumulative returns of 18,000% and 11,000% over a seven year period. These guys know how to trade and did a great job in this book explaining how they made such outrageous returns. I found the "Pocket Pivot" buy point especially informative as an ideal point to buy a hot stock based on its chart while it was in the "cup" of the famous O'Neil "cup and handle " formation. This is a huge new discovery that can increase winning percentages a great deal while using the CAN SLIM system by making the buy point sooner and safer. The reader gets to read what the author's considered the ten commandments of Bill O'Neil. These were not issued from Mr. O'Neil but rules and principles gathered while working with the trading wizard day by day. The book is absolutely packed with excellent information on how the authors achieved such outstanding results and tells of their trading journey. I could not begin to touch upon the vast amount of information contained in this book so I advise buying the book. At the end of the book the authors recommend the writings of Eckhart Tolle and Esther Hicks to really be able to handle the stress and have the right mind set for successful trading. This mention is much needed as I feel that trading psychology is neglected in the O'Neil books. He likely has no need to overcome the mental demons that plague other traders. The need to be right and the inability to handle losses when it is time to sell. Truly an excellent book on trading by real traders.

Great explanation

I highly reccomend this book to everyone interested about growth investing!

Very pleased with the condition of the book and the content.

Having gotten my own success in the market, trading options, I'm always looking for new strategies, new methods, and new outlooks in the market. I started trading with How To Make Money in Stocks by William J. O'Neil, and it has influenced my trading since I read it. Other books that they reccomend and their are many, are porbably truly essential to your success, and I would reccomend books like Trend Following by Michael Covel, William J. O'Neil's books, Nicolas Darvas, and Gerald Loeb, for you to read first before you read this book. However, this book, I also feel is an intermediate essential for any and all traders. This impressive book details several concepts, from timing models to pivot points. Their interesting views, back tested, and tested in real life, make this book highly respectable. Gil Morales and Dr. Chris Kacher (a brilliant musician as well, whose album Teardrop Rain you can get on Amazon, or Ituens), are traders, they make money trading daily. They are not gurus, they are not academics giving hypothesis, they are actual stock investors and traders, who make money trading. That makes their advice, not only sound, but something that any serious trader needs to take notice of. Starting off with their success stories, they talk briefly about the difficulty of getting started, and the learning curve that was necessary before they began their successful moves, however, I would say, as others have pointed out that they do not constantly give the amount of risk there is to trading. THough they give the reader a clear view on how to trade the market and restrict one's risk, they do not warn against the danger's of something like Goldman Sachs that drops thirty points in a day. Things happen, as it happened to Gil Morales, it says nothing about one's ability, but sometimes you just can't help it. However, that's one very minor shortcoming that doesn't eclipse the greatness of this work. The pocket pivot technique, I believe, is something that can definately aide any trader in the markets. The section on riding the bear waves is, in my opinion, more comprehensive than Gil Morales's book How To Make Money Selling Stocks Short, a great book that I highly reccomend as a foundation for short selling. Though I'm not a huge fan of etf's, I think the Dr. K Market Direction is one of the most interesting chapters I've read, it did make me want to consider ETF's.