"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
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 is it that so many traders and investors lose money in the market, while others---like authors Gil Morales and Chris Kacher---have shown the ability to earn huge returns on investment? As Bill O'Neil himself says, "Human nature being what it is, 90% of the people in the stock market---professionals and amateurs alike---simply haven't done enough homework." Trade Like an O'Neil Disciple: How We Made 18,000% in the Stock Market is your homework. And if you invest in the market, you can expect that there will be a test involving your own money.
The result of years of observation and the subsequent application of the commonsense rules learned, Trade Like an O'Neil Disciple details the small realities that make up the stock market, including
It took years to identify, analyze, catalog, and verify the characteristics of winning stocks for O'Neil to finally perfect his system. Authors Gil Morales and Chris Kacher save you the time and---if you're an investor, money---by bringing together in one comprehensive guide, the commonsense investment philosophies that allow them and you to Trade Like an O'Neil Disciple.
CHAPTER 1 The Evolution of Excellence: The O?Neil Trading Method.
Preparation, Study, and Practice.
Buy Expensive?Not Cheap?Stocks.
Cutting Losses Quickly.
Taking Profits Too Soon?Letting Your Winners Run.
Dealing in Big Stocks and Institutional Sponsorship.
Pivotal Points versus Pivot Points.
Timing the Market: When to Be In, When to Be Out.
Emotions and Predictions.
Listening to Opinions, News, and Tips.
The O'Neil Approach: Techno-Fundamentalism.
CHAPTER 2 How Chris Kacher Made Over 18,000 Percent in the Stock Market Over Seven Years.
Gaining a Foothold in the Business.
1996?"Y2K" Stocks Put Me Over the Top.
1997?Keeping Profits during the Asian Contagion.
1998?Demoralization Sets In Just Before the Market Takes Off.
1999?The Bubble Expands.
2000?The Bubble Bursts.
2001?A Lesson in Shorting.
2002 to Present?Choppy, Sideways Markets and the Birth of the Pocket Pivot.
CHAPTER 3 How Gil Morales Made Over 11,000 Percent in the Stock Market.
A Rocky Start Turns Golden.
Climbing on Board the Rocket Ride.
Joining the 1,000 Percent Club.
Oracle Bubbles Up.
Patience and a Watchful Eye.
Cleared for Take-Off.
Verisign: The "Spice in the Soup".
Sitting Not Thinking.
Closing In on the Top.
The Theme of Success.
The Secret Ingredients.
CHAPTER 4 Failing Forward.
The Psychology of Success Lies in Taming the Ego.
Learning from Our Mistakes.
Problems, Situations, and Solutions.
CHAPTER 5 Tricks of the Trade.
Dr. K's Laboratory: The Pocket Pivot Advantage.
Characteristics of Pocket Pivots.
Definition of a Pocket Pivot Buy Point.
Pocket Pivots and Standard Breakout Buy Points.
Buying "in the Pocket".
Bottom-Fishing with Pocket Pivots.
Continuation Pocket Pivots: Using the 10-Day Moving Average.
Improper or "Do Not Buy" Pocket Pivot Points.
Using Moving Averages as Sell Guides.
Dr. K's Laboratory: Buying Gap-Ups in Leading Stocks.
Selling Techniques Using the 10-Day and 50-Day Moving Averages.
Putting It All Together.
CHAPTER 6 Riding the Bear Wave: Timely Tools for Selling Stocks Short.
The Golden Rules of Short-Selling.
Shorting Rocket Stocks.
CHAPTER 7 Dr. K's Market Direction Model.
Timing the Market.
Stealing the Model's Secrets.
Timing Model FAQ.
CHAPTER 8 Our Bill of Commandments.
Surviving by Keeping Ego in Check.
The First Commandment.
The Second Commandment.
The Third Commandment.
The Fourth Commandment.
The Fifth Commandment.
The Sixth Commandment.
The Seventh Commandment.
The Eighth Commandment.
The Ninth Commandment.
The Tenth Commandment.
CHAPTER 9 In the Trenches with Bill O'Neil.
The Great Bear of 2001?2002.
2003?2005 Bull Market.
CHAPTER 10 Trading Is Life; Life Is Trading.
Ed Seykota: Teaching a Technique That Has Helped Traders around the World.
Eckhart Tolle: Helping People Achieve Inner Peace and Greater Fulfillment, a Prerequisite to Optimized Trading and Living.
Esther Hicks: Teacher of the Law of Attraction.
Jack Canfield: Seminal Works on Personal Optimization.
Psychological Checklist: Questions to Ask Yourself.
Parallels between Teachings.
APPENDIX Dr. K's Top 50 Wall Street Books.
About the Authors.