Trade Like an O'Neil Disciple: How We Made 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.

By way of background, I first read William O'Neil's "How to Make Money in Stocks" in 1990. Prior to that, I was looking to buy "value" stocks off the new low list and having a terrible time of it. It took me a good five years of rigorous application of his methods to make money consistently. In the mid 1990's I attended an IBD Advanced Workshop in Orlando, and again in 2000 in NYC. After reading, and re-reading O'Neil and applying the methodology, it was a treat to hear O'Neil talk about the market and investing at his workshops.By the time of the internet bubble, I was well prepared to trade, and I achieved a return of 539% in 1999. Trading has been difficult since, but my returns have averaged 18% per annum over the past 5 years. That's not impressive compared to the returns achieved by the authors, but the S&P 500 has returned around 1.75% per annum over the same time frame.My first impression when reading "Trade Like an O'Neil Disciple" was that of confirmation. A quick overview of the O'Neil CANSLIM rules was covered. Refinements of the system by the authors were welcome. Over the years I've intuitively adjusted my entry points, calling them low level breakouts, where Gil & Chris call them pocket pivots. I don't have the analytical skills of Mr Morales & Dr. Kacher, so I appreciate the back-testing and analysis of their many refinements.I'm eager to learn more about Dr. K's market direction system (chapter 7), and I'm considering a subscription to his service, but at the same time, O'Neil's message was always about teaching his disciples to fish rather than feeding them. I wonder if I'll lose my edge if I pay for Dr. K's timing calls.The later chapters where Gil and Chris relate their experiences with O'Neil were a joy. I may sound like a gushing school girl, and maybe I am. I hold Bill O'Neil's body of work in high regard, as it's provided me with the opportunity to provide for my family far beyond what I could have imagined 20 years ago. I could read an entire book of Bill's memoirs as it relates to trading and investing.The most valuable chapter, was the finale, "Trading is Life and Life is Trading." Interestingly, I had previously read Eckhart Tolle's "A New Earth" along with Oprah's book club. It had a wonderful impact on my life, and led me to another book recommendation, "Conversations with God" by Neale Donald Walsch. My trading has materially improved since reading Tolle and Walsch and now my experience has been validated with "Trade like and O'Neil Disciple." I finally get what O'Neil often stated, "Never trade from a position of fear."If you have ever endeavored to make money in stocks and not met success, here is your opportunity. Read O'Neil and Read and re-read Gil & Chris. These aren't books to read and put down. These are books to read and apply. Then repeat until you've achieved success. If I could do it, anyone can do it.LouAmbrosio.com

Excellent book and concepts......Pocket pivot concept.....7 week rule......Just amazing and incredible........From Prayagraj UP

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

If you’re looking to get more details on O’Neil’s strategies, this is definitely a book you want to read. However, keep in mind the following:- Authors are former O’Neil's PMs so their approach to markets, although is based on O’Neil’s strategies, has also plenty of their own approach. Thus, some parts can differ from O’Neil’s, which is fine.- If you are not familiarized with O’Neil's style, I recommend you to go into his main work “How to Make Money in Stocks”, before you get into this book, since most of the explanations go into more details on O’Neil’s book.-If you already know about O’Neil’s CANSLIM methodology, keep in mind that this book is more focused on the technical part and not too much on the fundamental side of good stocks, although it is provided a few indicators that you can use.-Although we all know about O’Neil’s outstanding talent, there are too many references to O’Neil’s virtues as a stock trader as well as a person, making the reading a bit repetitive in that regard for me.Beyond that I gave it 5 stars since there is valuable information and strategies that can be applied to improve our performance as money managers.

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

Great explanation