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

by Morales, Gil; Kacher, Chris

• ISBN13: 9780470616536
• ISBN10: 0470616539
• Edition: 1st
• Format: Hardcover
• Copyright: 2010-08-24
• Publisher: Wiley

Summary

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.

Author Biography

GIL MORALES is the author and publisher of www.GilmoReport.com; coauthor and publisher of www.VirtueOfSelfishInvesting.com; a former senior proprietary internal Portfolio Manager and Chief Market Strategist for William O'Neil + Company; and is currently a Managing Director of MoKa Investors, LLC. He also co-authored, with William J. O'Neil, the Wiley title, How to Make Money Selling Stocks Short. Mr. Morales received his BA in economics from Stanford University.

CHRIS KACHER is a frequent contributor to www.GilmoReport.com; coauthor and publisher of www.VirtueOfSelfishInvesting.com; a former research analyst and senior proprietary internal Portfolio Manager for William O'Neil + Company; and a Managing Director of MoKa Investors, LLC. He received his BS in chemistry and PhD in nuclear physics from the University of California at Berkeley.

Table of Contents

Foreword	p. xi
Preface	p. xiii
Acknowledgments	p. xvii
The Evolution of Excellence: The O'Neil Trading Method	p. 1
Preparation, Study, and Practice	p. 2
Buy Expensive-Not Cheap-Stocks	p. 4
Averaging Down	p. 5
Cutting Losses Quickly	p. 5
Taking Profits Too Soon-Letting Your Winners Run	p. 6
Position Concentration	p. 7
Dealing in Big Stocks and Institutional Sponsorship	p. 8
Chart Patterns	p. 9
Pivotal Points versus Pivot Points	p. 12
Timing the Market: When to Be In, When to Be Out	p. 13
Emotions and Predictions	p. 14
Listening to Opinions, News, and Tips	p. 15
Overtrading	p. 16
The O'Neil Approach: Techno-Fundamentalism	p. 17
Conclusion	p. 17
How Chris Kacher Made Over 18,000 Percent in the Stock Market Over Seven Years	p. 19
Gaining a Foothold in the Business	p. 20
1996-"Y2K" Stocks Put Me Over the Top	p. 22
1997-Keeping Profits during the Asian Contagion	p. 27
1998-Demoralization Sets In Just Before the Market Takes Off	p. 29
1999-The Bubble Expands	p. 31
2000-The Bubble Bursts	p. 35
2001-A Lesson in Shorting	p. 37
2002-to Present-Choppy, Sideways Markets and the Birth of the Pocket Pivot	p. 39
How Gil Morales Made Over 11,000 Percent in the Stock Market	p. 43
A Rocky Start Turns Golden	p. 44
Climbing on Board the Rocket Ride	p. 46
Joining the 1,000 Percent Club	p. 49
Oracle Bubbles Up	p. 50
Patience and a Watchful Eye	p. 53
Cleared for Take-Off	p. 54
Verisign: The "Spice in the Soup"	p. 56
Sitting Not Thinking	p. 60
Closing In on the Top	p. 62
The Theme of Success	p. 64
The Secret Ingredients	p. 65
Failing Forward	p. 67
The Psychology of Success Lies in Taming the Ego	p. 68
Learning from Our Mistakes	p. 72
Problems, Situations, and Solutions	p. 107
Conclusion	p. 125
Tricks of the Trade	p. 127
Dr. K's Laboratory: The Pocket Pivot Advantage	p. 128
Characteristics of Pocket Pivots	p. 131
Definition of a Pocket Pivot Buy Point	p. 132
Pocket Pivots and Standard Breakout Buy Points	p. 133
Buying "in the Pocket"	p. 136
Bottom-Fishing with Pocket Pivots	p. 149
Continuation Pocket Pivots: Using the 10-Day Moving Average	p. 153
Improper or "Do Not Buy" Pocket Pivot Points	p. 157
Using Moving Averages as Sell Guides	p. 163
Dr. K's Laboratory: Buying Gap-Ups in Leading Stocks	p. 165
Selling Techniques Using the 10-Day and 50-Day Moving Averages	p. 173
Putting It All Together	p. 177
Conclusion	p. 185
Riding the Bear Wave: Timely Tools for Selling Stocks Short	p. 186
The Golden Rules of Short-Selling	p. 187
Short-Sale Set-Ups	p. 192
Shorting Rocket Stocks	p. 221
Conclusion	p. 224
Dr. K's Market Direction Model	p. 226
Timing the Market	p. 226
Chart Examples	p. 234
Stealing the Model's Secrets	p. 243
Timing Model FAQ	p. 244
Conclusion	p. 259
Our Bill of Commandments	p. 260
Misconceptions	p. 260
Surviving by Keeping Ego in Check	p. 263
The First Commandment	p. 265
The Second Commandment	p. 265
The Third Commandment	p. 267
The Fourth Commandment	p. 267
The Fifth Commandment	p. 267
The Sixth Commandment	p. 268
The Seventh Commandment	p. 268
The Eighth Commandment	p. 268
The Ninth Commandment	p. 269
The Tenth Commandment	p. 269
Conclusion	p. 270
In the Trenches with Bill O'Neil	p. 272
1997-1998	p. 272
1999-2000	p. 286
The Great Bear of 2001-2002	p. 307
2003-2005 Bull Market	p. 318
Conclusion	p. 329
Trading Is Life; Life Is Trading	p. 331
Teaching a Technique That Has Helped Traders around the World	p. 332
Helping People Achieve Inner Peace and Greater Fulfillment, a Prerequisite to Optimized Trading and Living	p. 334
Teacher of the Law of Attraction	p. 340
Seminal Works on Personal Optimization	p. 341
Psychological Checklist: Questions to Ask Yourself	p. 343
Parallels between Teachings	p. 345
In Conclusion	p. 346
Appendix: Dr. K's Top 50 Wall Street Books	p. 347
About the Authors	p. 351
Index	p. 353
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