Description
Book SynopsisA guide to mastering powerful trading methods inspired by stock market legend William O'Neil. It delivers trading techniques based on the O'Neil model that you can put to work in your own portfolio.
Table of ContentsAcknowledgments xiii
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
