In The Trading Cockpit with the O'Neil Disciples: Strategies that Made Us 18,000% in the Stock Market
Praise for In the Trading Cockpit . . .
"Morales and Kacher want you to see an alternative to popular and traditional dead end strategies (i.e., buy and hope). Absorb the insights of In the Trading Cockpit with the O'Neil Disciples and put yourself in position to think differentlyand profit."
Michael W. Covel, Bestselling author of Trend Following and The Complete TurtleTrader; President, Trend Following
Your hands-on guide to mastering powerful trading methods inspired by stock market legend William O'Neil
Written by two former William O'Neil + Co. employees who have spent years building upon the lessons they learned working alongside the master, this book delivers powerful trading techniques based on the O'Neil model that you can put to work in your own portfolio, right away.
The follow-up to their bestselling Trade Like an O'Neil Disciple, In the Trading Cockpit with the O'Neil Disciples goes beyond the descriptive narrative of the former book to provide you with step-by-step guidance and all the practice you need to quickly master those tried-and-true methods and make them an integral part of your trading system.
- Clear, step-by-step explanations of powerful new trading strategies, including techniques for buying pocket pivots and gap-ups
- Hundreds of annotated exampleswith chartsof real-life trades from the authors' own experiences with detailed analysis of what worked, what didn't, and why
- Set ups with buy, add, and sell points for both winning and losing scenarios
- Dozens of skill-building exercises that help you quickly master the techniques described
- Tried-and-true stock shorting techniques based on William O'Neil's methods
Written by established experts Gil Morales and Dr. Chris Kacher, In the Trading Cockpit with the O'Neil Disciples is an indispensable guide to mastering proven strategies for trading stocks for record profits in every market environment.
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
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
Chapter 6 Buyable Gap-Up Exercises 197
Chapter 7 A Trading Simulation 265
First Solar (FSLR) 2007–2008 266
Acme Packet (APKT) 2010–2011 318
Chapter 8 Frequently Asked Questions 341
Pocket Pivot Buy Points 341
Buyable Gap-Ups 354
Stops and General Selling Rules 355
General Topics 359
Market Timing Model Building 370
Appendix List of Companies (with Ticker Symbols)
Referenced in the Book 375
About the Authors 379
Gil Morales is a co-Managing Director and Chief Portfolio Manager of MoKa Investors, LLC. He is the coauthor and publisher of the investment website, VirtueOfSelfishInvesting.com, as well as the author and publisher of the Gilmo Report (www.gilmoreport.com), and was formerly a senior proprietary portfolio manager for William O'Neil + Company, Inc. During his tenure there, Gil also functioned as vice president and manager of the Institutional Services Group, responsible for advising more than 500 of the world's largest and most successful institutional investors, including mutual funds, pension funds, hedge funds, trust companies, and banks. In 2004, Mr. Morales was appointed chief market strategist for William O'Neil + Co., Inc. and coauthored with William J. O'Neil the short-selling treatise, How to Make Money Selling Stocks Short (Wiley). Between 1998 and 2005, Morales achieved an audited return of 10,904% in his personal account, as verified by Rothstein Kass.
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.
In their bestselling Trade Like an O’Neil Disciple, Gil Morales and Dr. Chris Kacher described their experiences working side-by-side with market legend William O’Neil and how they made a fortune using his original stock trading strategies.
Now, in their new book, In the Trading Cockpit with the O’Neil Disciples: Strategies that Made Us 18,000% in the Stock Market (Wiley, December 2012; ISBN: 978-1-1182-7302-9), Morales and Kacher arm investors with a set of proven analysis techniques and trading strategies that can only be described as a quantum leap in the evolution of the O’Neil model and the CANSLIM approach to stock trading.
Frustrated by the sideways markets of the mid- 2000s, as well as by what they perceived to be undue constraints inherent in the O’Neil model, the authors spent several years examining hundreds of charts and analyzing thousands of individual trades to see how they could improve on the results they had been getting using O’Neil’s strategies. The outcome was a set of powerful techniques for identifying and capturing stock breakouts early in their base and riding them up for maximum profit taking.
Authors Dr. Chris Kacher and Gil Morales can discuss:
- What’s new and different In the Trading Cockpit, since the launch of Kacher & Morales’ first book?
- What are the powerful trading techniques that were built upon the methodologies pioneered by William O’Neil?
- What are the stocks today that may be identified as continuation pocket pivots, and gap-ups?
- What is the Seven-Week Rule for when to sell?
- What stocks may match with Kacher and Morales’ short-selling techniques in today’s market?
- What key technical signals can be used today to analyze stock movements and predict price changes of an array of leading stocks?
- What have we learned from successful investing in the past, and what makes William O’Neil’s strategies a timeless, ongoing winning strategy?
Packed with invaluable technical information, powerful stock analysis tools, and tons of real world examples and practice exercises, In the Trading Cockpit with the O’Neil Disciples is your ticket to the record-breaking returns investors want and deserve—in bull, bear, and sideways markets alike. This book is available at all booksellers. For more information, please visit www.virtueofselfishinvesting.com.