In The Trading Cockpit with the O'Neil Disciples
Strategies that Made Us 18,000% in the Stock Market
Wiley Trading Series
1. Auflage Februar 2013
432 Seiten, Hardcover
Wiley & Sons Ltd
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 methodology are explained in detail (for buying pocket pivots, gap-ups, and including a market direction timing model) as well as techniques for shorting stocks. This book is a hands-on guide to implementing the O'Neil trading system and generating consistent profits with hands-on examples and exercises for readers to practice before implementation. Readers can make their mistakes in the book, learn from them, and then apply the same principles and techniques to real-world markets.
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
Chris Kacher, PhD, is coauthor and publisher of www.VirtueOfSelfishInvesting.com. His investment career began in 1995 when he founded one of the first Internet-based stock advisory services. In 1996, he joined William O'Neil + Co., Inc. as a research associate before quickly being promoted to senior research analyst and senior proprietary portfolio manager for the firm in 1997. From 1996 to 2002, Dr. Kacher achieved a verified return in his personal account in excess of 18,000%, as verified by KPMG. He received a BS in chemistry and PhD in nuclear physics from the University of California at Berkeley, where he studied under Nobel Laureate professor Glenn Seaborg and helped discover element 110 on the Periodic Table of Elements and confirm element 106, which his group named Seaborgium.
