In The Trading Cockpit with the O'Neil Disciples : Strategies That Made Us 18,000% in the Stock Market

__Praise for__ In the Trading Cockpit . . . "Morales and Kacher want you to see an alternative to popular and traditional dead end strategies (i.e., buy and hope). Absorb the insights of __In the Trading Cockpit__ __with the O'Neil Disciples__ and put yourself in position to think differently—and profit." **— Michael W. Covel, Bestselling author of __Trend Following__ and __The Complete TurtleTrader__; President, Trend Following** **Your hands-on guide to mastering powerful trading methods inspired by stock market legend William O'Neil** Written by two former William O'Neil + Co. employees who have spent years building upon the lessons they learned working alongside the master, this book delivers powerful trading techniques based on the O'Neil model that you can put to work in your own portfolio, right away. The follow-up to their bestselling __Trade Like an O'Neil Disciple,__ __In the Trading Cockpit with the O'Neil Disciples__ goes beyond the descriptive narrative of the former book to provide you with step-by-step guidance and all the practice you need to quickly master those tried-and-true methods and make them an integral part of your trading system. You'll find: * Clear, step-by-step explanations of powerful new trading strategies, including techniques for buying pocket pivots and gap-ups * Hundreds of annotated examples—with charts—of real-life trades from the authors' own experiences with detailed analysis of what worked, what didn't, and why * Set ups with buy, add, and sell points for both winning and losing scenarios * Dozens of skill-building exercises that help you quickly master the techniques described * Tried-and-true stock shorting techniques based on William O'Neil's methods Written by established experts Gil Morales and Dr. Chris Kacher, __In the Trading Cockpit with the O'Neil Disciples__ is an indispensable guide to mastering proven strategies for trading stocks for record profits in every market environment. Acknowledgments xiii Introduction xv Disciple Boot Camp xvii Pocket Pivot Buy Points xviii Buyable Gap?]Ups xxi Moving Average Violations xxiv The Seven-Week Rule xxv As You Begin xxvi Chapter 1 The OWL Ethos 1 Quick Quiz 2 Chart Exercises 7 Identifying Bases 7 The Line of Least Resistance 9 Answers to Quick Quiz 14 Answers to Chart Exercises 19 Identifying Bases 19 The Line of Least Resistance 24 Summary 32 Chapter 2 Mind Games and Mazes 33 Embracing Uncertainty 33 The Psychology of Follow-Through Days 34 Lockheed-Martin: An Opportunity Derived from Uncertainty 37 Silver: A Crystalline Trend amid the Uncertain and Murky Waters of 2011 40 The Uncertainty of Company Earnings Announcements 42 You Must Lose to Win 44 The Need for Labels as a Heuristic Achilles Heel 46 Price Bias 48 Find Experts You Can Learn From, Not Have to Rely On 51 Paper Trading versus Real Trading 52 Awareness and Preparation 53 In Summary: Know Thyself 56 Chapter 3 2011: A Postmortem for the New Millennium 59 Reviewing the 2011 Trade Blotter 62 Using Spreadsheet Analysis with Chart Mark-Ups 63 Three Swings, Three Strikes 64 The Window of Opportunity Has a Silver Lining 68 More Roads to Nowhere in 2011 74 Summarizing the Lessons of 2011 80 Chapter 4 Developing Your Chart Eye 85 What Is a Chart Eye? 86 The Visual Effect of X- and Y-axis Scaling 88 Linear versus Logarithmic Charts 90 Bars or Candles? 92 Moving Average Stress Syndrome (MASS) 95 Indicators: Useful or Useless? 102 Are Intraday Charts Useful? 105 Monitor Color and Formatting Schemes 108 What You See Is What You Get 111 Chapter 5 Pocket Pivot Exercises 113 Conclusion 195 Chapter 6 Buyable Gap-Up Exercises 197 Conclusion 263 Chapter 7 A Trading Simulation 265 First Solar (FSLR) 2007 2008 266 Acme Packet (APKT) 2010 2011 318 Conclusion 340 Chapter 8 Frequently Asked Questions 341 Pocket Pivot Buy Points 341 Buyable Gap-Ups 354 Stops and General Selling Rules 355 General Topics 359 Short-Selling 367 Market Timing Model Building 370 Appendix List of Companies (with Ticker Symbols) Referenced in the Book 375 About the Authors 379 Index 381 In the Trading Cockpit with the O’Neil Disciples 3 Contents 11 Acknowledgments 15 Introduction 17 Disciple Boot Camp 19 Pocket Pivot Buy Points 20 Buyable Gap-Ups 23 Moving Average Violations 26 The Seven‐Week Rule 27 As You Begin 28 Chapter 1 The OWL Ethos 33 Quick Quiz 34 Chart Exercises 39 Identifying Bases 39 The Line of Least Resistance 41 Answers to Quick Quiz 46 Answers to Chart Exercises 51 Identifying Bases 51 The Line of Least Resistance 56 Summary 64 Chapter 2 Mind Games and Mazes 65 Embracing Uncertainty 65 The Psychology of Follow-Through Days 66 Lockheed-Martin: An Opportunity Derived from Uncertainty 69 Silver: A Crystalline Trend amid the Uncertain and Murky Waters of 2011 72 The Uncertainty of Company Earnings Announcements 74 You Must Lose to Win 76 The Need for Labels as a Heuristic Achilles’ Heel 78 Price Bias 80 Find Experts You Can Learn From, Not Have to Rely On 83 Paper Trading versus Real Trading 84 Awareness and Preparation 85 In Summary: Know Thyself 88 Chapter 3 2011: A Postmortem for the New Millennium 91 Reviewing the 2011 Trade Blotter 94 Using Spreadsheet Analysis with Chart Mark-Ups 95 Three Swings, Three Strikes 96 The Window of Opportunity Has a Silver Lining 100 More Roads to Nowhere in 2011 106 Summarizing the Lessons of 2011 112 Chapter 4 Developing Your “Chart eye” 117 What Is a Chart Eye? 118 The Visual Effect of X- and Y-axis Scaling 120 Linear versus Logarithmic Charts 122 Bars or Candles? 124 Moving Average Stress Syndrome (MASS) 127 Indicators: Useful or Useless? 134 Are Intraday Charts Useful? 137 Monitor Color and Formatting Schemes 140 What You See Is What You Get 143 Chapter 5 Pocket Pivot Exercises 145 Conclusion 227 Chapter 6 Buyable Gap-Up Exercises 229 Conclusion 295 Chapter 7 A Trading Simulation 297 First Solar (FSLR) 2007–2008 298 Acme Packet (APKT) 2010–2011 350 Conclusion 372 Chapter 8 Frequently Asked Questions 373 Pocket Pivot Buy Points 373 Buyable Gap-Ups 386 Stops and General Selling Rules 387 General Topics 391 Short-Selling 399 Market Timing Model Building 402 APPENDIX List of Companies (with Ticker Symbols) Referenced in the Book 407 About the Authors 411 Index 413

Praise for In the Trading Cockpit . . .

"Morales and Kacher want you to see an alternative to popular and traditional dead end strategies (i.e., buy and hope). Absorb the insights of In the Trading Cockpit with the O'Neil Disciples and put yourself in position to think differently—and profit."
— Michael W. Covel, Bestselling author of Trend Following and The Complete TurtleTrader; President, Trend Following

Your hands-on guide to mastering powerful trading methods inspired by stock market legend William O'Neil

Written by two former William O'Neil + Co. employees who have spent years building upon the lessons they learned working alongside the master, this book delivers powerful trading techniques based on the O'Neil model that you can put to work in your own portfolio, right away.

The follow-up to their bestselling Trade Like an O'Neil Disciple, In the Trading Cockpit with the O'Neil Disciples goes beyond the descriptive narrative of the former book to provide you with step-by-step guidance and all the practice you need to quickly master those tried-and-true methods and make them an integral part of your trading system.

You'll find:

• Clear, step-by-step explanations of powerful new trading strategies, including techniques for buying pocket pivots and gap-ups
• Hundreds of annotated examples—with charts—of real-life trades from the authors' own experiences with detailed analysis of what worked, what didn't, and why
• Set ups with buy, add, and sell points for both winning and losing scenarios
• Dozens of skill-building exercises that help you quickly master the techniques described
• Tried-and-true stock shorting techniques based on William O'Neil's methods

Written by established experts Gil Morales and Dr. Chris Kacher, In the Trading Cockpit with the O'Neil Disciples is an indispensable guide to mastering proven strategies for trading stocks for record profits in every market environment.

Praise for In the Trading Cockpit...

"Morales and Kacher want you to see an alternative to popular and traditional dead end strategies (i.e., buy and hope). Absorb the insights of In the Trading Cockpit with the O'Neil Disciples and put yourself in position to think differently—and profit."
— Michael W. Covel, Bestselling author of Trend Following and The Complete TurtleTrader; President, Trend Following

Your hands-on guide to mastering powerful trading methods inspired by stock market legend William O'Neil

Written by two former William O'Neil + Co. employees who have spent years building upon the lessons they learned working alongside the master, this book delivers powerful trading techniques based on the O'Neil model that you can put to work in your own portfolio, right away.

The follow-up to their bestselling Trade Like an O'Neil Disciple, In the Trading Cockpit with the O'Neil Disciples goes beyond the descriptive narrative of the former book to provide you with step-by-step guidance and all the practice you need to quickly master those tried-and-true methods and make them an integral part of your trading system.

You'll find:

• Clear, step-by-step explanations of powerful new trading strategies, including techniques for buying pocket pivots and gap-ups
• Hundreds of annotated examples—with charts—of real-life trades from the authors' own experiences with detailed analysis of what worked, what didn't, and why
• Set ups with buy, add, and sell points for both winning and losing scenarios
• Dozens of skill-building exercises that help you quickly master the techniques described
• Tried-and-true stock shorting techniques based on William O'Neil's methods

Written by established experts Gil Morales and Dr. Chris Kacher, In the Trading Cockpit with the O'Neil Disciples is an indispensable guide to mastering proven strategies for trading stocks for record profits in every market environment.

For iIn the Trading Cockpit/i . . ./i/ "Morales and Kacher want you to see an alternative to popular and traditional dead end strategies (i.e., buy and hope). Absorb the insights of iIn the Trading Cockpit/i iwith the O'Neil Disciples/i and put yourself in position to think differently'and profit." b' Michael W. Covel, Bestselling author of iTrend Following/i and iThe Complete TurtleTrader/i; President, Trend Following/b bYour hands, on guide to mastering powerful trading methods inspired by stock market legend William O'Neil/b Written by two former William O'Neil * Co. employees who have spent years building upon the lessons they learned working alongside the master, this book delivers powerful trading techniques based on the O'Neil model that you can put to work in your own portfolio, right away. The follow, up to their bestselling iTrade Like an O'Neil Disciple, /i iIn the Trading Cockpit with the O'Neil Disciples/i goes beyond the descriptive narrative of the former book to provide you with step, by, step guidance and all the practice you need to quickly master those tried, and, true methods and make them an integral part of your trading system. You'll find:ulliClear, step, by, step explanations of powerful new trading strategies, including techniques for buying pocket pivots and gap, ups/liliHundreds of annotated examples'with charts'of real, life trades from the authors' own experiences with detailed analysis of what worked, what didn't, and why/liliSet ups with buy, add, and sell points for both winning and losing scenarios/liliDozens of skill, building exercises that help you quickly master the techniques described/liliTried, and, true stock shorting techniques based on William O'Neil's methods/li/ul Written by established experts Gil Morales and Dr. Chris Kacher, iIn the Trading Cockpit with the O'Neil Disciples /iis an indispensable guide to mastering proven strategies for trading stocks for record profits in every market environment In the Trading Cockpit with the O'neil Disciples is a step-by-step instruction guide to implementing Morales and Kacher's trading methods into your home trading system under various market conditions, written by two very successful and renown O'Neil insiders. The authors use real trades including set ups, buy, add, and sell points for both winners and losers to teach the methodology as well as help traders learn the system themselves. Real examples from their trades and step-by-step instructions teach traders how to trade like they did. Strategies they have created using the O'Neil meth A guide to mastering trading methods inspired by stock market legend William O'Neil. Written by two former William O'Neil + Co. employees, this book delivers powerful trading techniques based on the O'Neil model that you can put to work in your own portfolio. This book provides step-by-step guidance to quickly master those tried-and-true methods and make them an integral part of your trading system The OWL ethos : determining if the methodology is for you -- Mind games and mazes -- 2011 : a post-mortem for the new millennium -- Developing your "chart eye" -- Pocket pivot exercises -- Buyable gap-up exercises -- A trading simulation -- Frequently asked questions.