Trade Like an O'Neil Disciple: How We Made 18,000% in the Stock Market (Wiley Trading)

How two former traders of William J. O'Neil + Company made mad money using O'Neil's trading strategies, and how you can, too From the successes and failures of two William O'Neil insiders, Trade Like an O'Neil Disciple: How We Made Over 18,000% in the Stock Market in 7 Years is a detailed look at how to trade using William O'Neil's proven strategies and what it was like working side-by-side with Bill O'Neil. Under various market conditions, the authors document their trades, including the set ups, buy, add, and sell points for their winners. Then, they turn the magnifying glass on themselves to analyze their mistakes, including how much they cost them, how they reacted, and what they learned. Presents sub-strategies for buying pocket pivots and gap-ups Includes a market direction timing model, as well as updated tools for selling stocks short Provides an "inside view" of the authors' experiences as proprietary, internal portfolio managers at William O'Neil + Company, Inc. from 1997-2005 Detailing technical information and the trading psychology that has worked so well for them, Trade Like an O'Neil Disciple breaks down what every savvy money manager, trader and investor needs to know to profit enormously in today's stock market. Trade Like an O’Neil Disciple: How We Made 18,000% in the Stock Market 6 Contents 9 Foreword 13 Preface 15 Acknowledgments 19 Chapter 1: The Evolution of Excellence 21 PREPARATION, STUDY, AND PRACTICE 22 BUY EXPENSIVE—NOT CHEAP—STOCKS 24 AVERAGING DOWN 25 CUTTING LOSSES QUICKLY 25 TAKING PROFITS TOO SOON—LETTING YOUR WINNERS RUN 26 POSITION CONCENTRATION 27 DEALING IN BIG STOCKS AND INSTITUTIONAL SPONSORSHIP 28 CHART PATTERNS 29 PIVOTAL POINTS VERSUS PIVOT POINTS 32 TIMING THE MARKET: WHEN TO BE IN, WHEN TO BE OUT 33 EMOTIONS AND PREDICTIONS 34 LISTENING TO OPINIONS, NEWS, AND TIPS 35 OVERTRADING 36 THE O’NEIL APPROACH: TECHNO-FUNDAMENTALISM 37 CONCLUSION 37 Chapter 2: How Chris Kacher Made Over 18,000 Percent in the Stock Market Over Seven Years 39 GAINING A FOOTHOLD IN THE BUSINESS 40 1996—“Y2K” STOCKS PUT ME OVER THE TOP 42 1997—KEEPING PROFITS DURING THE ASIAN CONTAGION 47 1998—DEMORALIZATION SETS IN JUST BEFORE THE MARKET TAKES OFF 49 1999—THE BUBBLE EXPANDS 51 2000—THE BUBBLE BURSTS 55 2001—A LESSON IN SHORTING 57 2002 TO PRESENT—CHOPPY, SIDEWAYS MARKETS AND THE BIRTH OF THE POCKET PIVOT 59 Chapter 3: How Gil Morales Made Over 11,000 Percent in the Stock Market 63 A ROCKY START TURNS GOLDEN 64 CLIMBING ON BOARD THE ROCKET RIDE 66 JOINING THE 1,000 PERCENT CLUB 69 ORACLE BUBBLES UP 70 PATIENCE AND A WATCHFUL EYE 73 CLEARED FOR TAKE-OFF 74 VERISIGN: THE “ SPICE IN THE SOUP” 76 SITTING NOT THINKING 80 CLOSING IN ON THE TOP 82 THE THEME OF SUCCESS 84 THE SECRET INGREDIENTS 85 Chapter 4: Failing Forward 87 THE PSYCHOLOGY OF SUCCESS LIES IN TAMING THE EGO 88 LEARNING FROM OUR MISTAKES 92 PROBLEMS, SITUATIONS, AND SOLUTIONS 127 CONCLUSION 145 Chapter 5: Tricks of the Trade 147 DR. K’S LABORATORY: THE POCKET PIVOT ADVANTAGE 148 CHARACTERISTICS OF POCKET PIVOTS 151 DEFINITION OF A POCKET PIVOT BUY POINT 152 POCKET PIVOTS AND STANDARD BREAKOUT BUY POINTS 153 BUYING “IN THE POCKET” 156 BOTTOM-FISHING WITH POCKET PIVOTS 169 CONTINUATION POCKET PIVOTS: USING THE 10-DAY MOVING AVERAGE 173 IMPROPER OR “DO NOT BUY” POCKET PIVOT POINTS 177 USING MOVING AVERAGES AS SELL GUIDES 183 DR. K’S LABORATORY: BUYING GAP-UPS IN LEADING STOCKS 185 SELLING TECHNIQUES USING THE 10-DAY AND 50-DAY MOVING AVERAGES 193 PUTTING IT ALL TOGETHER 197 CONCLUSION 205 Chapter 6: Riding the Bear Wave 206 THE GOLDEN RULES OF SHORT-SELLING 207 SHORT SALE SET-UPS 212 SHORTING ROCKET STOCKS 241 CONCLUSION 244 Chapter 7: Dr. K’s Market Direction Model 246 TIMING THE MARKET 246 CHART EXAMPLES 254 STEALING THE MODEL’S SECRETS 263 TIMING MODEL FAQ 264 CONCLUSION 279 Chapter 8: Our Bill of Commandments 280 MISCONCEPTIONS 280 SURVIVING BY KEEPING EGO IN CHECK 283 THE FIRST COMMANDMENT 285 THE SECOND COMMANDMENT 285 THE THIRD COMMANDMENT 287 THE FOURTH COMMANDMENT 287 THE FIFTH COMMANDMENT 287 THE SIXTH COMMANDMENT 288 THE SEVENTH COMMANDMENT 288 THE EIGHTH COMMANDMENT 288 THE NINTH COMMANDMENT 289 THE TENTH COMMANDMENT 289 CONCLUSION 290 Chapter 9: In the Trenches with Bill O’Neil 292 1997–1998 292 1999–2000 306 THE GREAT BEAR OF 2001–2002 327 2003–2005 BULL MARKET 338 CONCLUSION 349 Chapter 10: Trading Is Life; Life Is Trading 351 ED SEYKOTA: TEACHING A TECHNIQUE THAT HAS HELPED TRADERS AROUND THE WORLD 352 ECKHART TOLLE: HELPING PEOPLE ACHIEVE INNER PEACE AND GREATER FULFILLMENT, A PREREQUISITE TO OPTIMIZED TRADING AND LIVING 354 ESTHER HICKS: TEACHER OF THE LAW OF ATTRACTION 360 JACK CANFIELD: SEMINAL WORKS ON PERSONAL OPTIMIZATION 361 PSYCHOLOGICAL CHECKLIST: QUESTIONS TO ASK YOURSELF 363 PARALLELS BETWEEN TEACHINGS 365 IN CONCLUSION 366 Appendix: Dr. K’s Top 50 Wall Street Books 367 About the Authors 371 Index 373 0470616539,9780470616536,9780470886748

"In these historically difficult markets where quantitative easing and forced selling are the norm, Gil Morales and Chris Kacher show how to apply, with incredible success, their unique investment tools and methods in an increasingly volatile trading environment. However, beyond their 'pocket pivot point' investment method, their short-sale setups and their groundbreaking 'Dr. K market timing tool,' what is truly amazing is to learn how professional traders analyze their mistakes and correct them. It is not great tools that make great traders, it is humility and flexibility combined with decisive action that determines one's 'success or failure.'"
—Pascal Willain, independent trader and inventor of volume-based indicators, author of Value in Time

"If you only read one book this year, read this one. It turns everything you know inside out and changes the way you see the things that matter. In a world full of fake promises and hype, here is something real. Morales' and Kacher's vision, passion, and dynamism is [proven]by their results. Lots of people talk, they have delivered. If you really want to succeed in a very uncertain world, read this book. It will change your success."
—Dr. Michael Meegan, author of All Will Be Well

What the market will do is anyone's guess. What it is doing should be anything but.

From the successes and failures of two William O'Neil insiders, Trade Like an O'Neil Disciple: How We Made 18,000% in the Stock Market is a detailed look at how to trade using William O'Neil's proven strategies, as well as what it was like working side-by-side with the Wall Street legend.

Detailing both the technical information and the trading psychology that has worked so well for them, and including a market direction timing model, Trade Like an O'Neil Disciple breaks down what every savvy money manager, trader, or investor needs to know to profit enormously in today's stock market.

How Two Former Traders Of William J. O'neil + Company Made Mad Money Using O'neil's Trading Strategies, And How You Can, Too From The Successes And Failures Of Two William O'neil Insiders, Trade Like An O'neil Disciple: How We Made Over 18,000% In The Stock Market In 7 Years Is A Detailed Look At How To Trade Using William O'neil's Proven Strategies And What It Was Like Working Side-by-side With Bill O'neil. Under Various Market Conditions, The Authors Document Their Trades, Including The Set Ups, Buy, Add, And Sell Points For Their Winners. Then, They Turn The Magnifying Glass Trade Like An O'neil Disciple: How We Made 18,000% In The Stock Market; Contents; Foreword; Preface; Acknowledgments; Chapter 1: The Evolution Of Excellence; Chapter 2: How Chris Kacher Made Over 18,000 Percent In The Stock Market Over Seven Years; Chapter 3: How Gil Morales Made Over 11,000 Percent In The Stock Market; Chapter 4: Failing Forward; Chapter 5: Tricks Of The Trade; Chapter 6: Riding The Bear Wave; Chapter 7: Dr. K's Market Direction Model; Chapter 8: Our Bill Of Commandments; Chapter 9: In The Trenches With Bill O'neil; Chapter 10: Trading Is Life; Life Is Trading Appendix: Dr. K's Top 50 Wall Street Booksabout The Authors; Index Gil Morales And Dr. Chris Kacher. Includes Index. Includes Bibliographical References And Index. English "Trade Like an O'Neil Disciple is a detailed look at how to trade William O'Neil strategies under various market conditions by two O'Neil insiders - something never before written about. From their successes to their failures, the authors show the trades including the set ups, buy, add, and sell points for their winners and then turn the magnifying glass on themselves to analyze their mistakes, how much they cost, how they reacted, and what they learned. While they have had great success over the years, they suffered their fair share of losing trades and mistakes, some from hubris. From there they present sub-strategies they have created using the O'Neil methodologies as a basis for buying pocket pivots, gap-ups, and including a market direction timing model. Also included are updated tools for selling stocks short. Accompanied by webinar breakout modules on key topics from the book, Trade Like an O'Neil Disciple includes the technical information active traders seek, and also delves into trading psychology to highlight that which has worked so well for them. This book will surely be of keen interest to active traders and investors, particularly those using O'Neil methodologies."-- Provided by publisher "Trade Like Bill O'Neil is a detailed look at how to trade William O'Neil strategies under various market conditions by two O'Neil insiders - something never before written about. From their successes to their failures, the authors show the trades including the set ups, buy, add, and sell points for their winners and then turn the magnifying glass on themselves to analyze their mistakes, how much they cost, how they reacted, and what they learned. While they have had great success over the years, they suffered their fair share of losing trades and mistakes, some from hubris. From there they present sub-strategies they have created using the O'Neil methodologies as a basis for buying pocket pivots, gap-ups, and including a market direction timing model. Also included, are updated tools for selling stocks short. Accompanied by webinar breakout modules on key topics from the book, Trade Like Bill O'Neil includes the technical information active traders seek, and also delves into trading psychology to highlight that which has worked so well for them. This book will surely be of keen interest to active traders and investors, particularly those using O'Neil methodologies."-- Provided by publisher * Trade Like an O Neil Disciple is a detailed look at how to trade William O Neil strategies under various market conditions by two O Neil insiders something never before written about.