How To Make Money In Stocks Pdf

How To Make Money In Stocks Pdf Video

How To Make Money In Stocks Pdf Video Transcript

in our core book library at oex options
and blood ship options we recommend five
to seven books that we think are
critical for your study I'd like to take
a few moments to tell you overall logic
on why I recommended a book by william
o'neal called how to make money in the
stock market mr. O'Neill was a student
of Richard wyckoff and a self-made
millionaire investor that invented a
system of system ology called can slim
CA n s.l.i.m can slim is effectively
white coffee and logic and Richard
wyckoff for your information was one of
the most famous traders in the world

back in the 20s one of the first
successful stock traders kin slim
studies stocks for a series of multiples
they're interested in price to earnings
ratio it's interested in earnings per
share of where a stock is specifically
charting towards hitting a breakout
point break out meaning the type of
stock that will suddenly hit $11 let's
say and hit a certain by point and move
up to twenty or twenty-five dollars
before correcting these are high fifty
percent seventy-five percent growth
stocks and take place over a short time
period what O'Neill does in his book is

simplify some very complex financial
methodology and to entice you to read
this book I'd like to share with you
just off the top of my head the four or
five key points that I took as a student
of O'Neill years ago and then I took
from wyckoff number one O'Neill teaches
stop loss he says the with stocks that
you should take a stop loss of no more
than seven to eight percent from your
original by his logic is that if you
start to buy if you own something and it
goes down twenty or twenty-five percent
after you've bought it you'll have to be
returning 33 to fifty percent to break

even and that once a stock is starting
to delize you may be in for a longer
time
in this downturn and you're holding
something that doesn't return value
O'Neill says cut bait get out so if you
buy something at 10 and it drops 8% have
your stop loss in place and sell out the
logic of the tight stop-loss is very
effective with our services there are
some stocks we don't use this with and
we use instead of 25% trailing stock
because the stock itself button might be
involved more volatile as you study
O'Neill's book and you study Lloyd's

work recognize that O'Neill's work is
clear-cut only for breakout stocks and
the Freudian methodology of stock
trading includes breakout stocks
speculative stocks and core stocks
summon out in other words that may go
down in price as you first buy them but
you're buying into on volatility and
ready to buy again so number one O'Neill
teaches stop loss he also teaches
position sizing that he wants you to get
to know just a few stocks not a lot of
stocks O'Neill says I think between 8 to
16 stocks that he would like you to own
and study wyckoff says 50 in that

category wherever your choices are the
more you know about less the more you
know the more you know about a lot the
less you know so if you have lots of
information and only a portion of it is
conclusive that you've concluded
concluded data from it you're more
dangerous than if you know lots about
something pick the stocks or the sectors
that are important to you and focus in
on them and learn specific stocks next
one'll talks about relative strengths in
the market and he's extremely good on it
there's a methodology and churning
called the relative strength indicator

it's a lagging indicator and typically
not valuable the way O'Neill uses it and
we'd use it conjunctive ly with Dorsey's
point and figure charting is that he
helps define the relative strength of a
Pacific stock within a sector for
example in the financial or banking
sector we may have Citigroup wachovia
bank of the west wall washington mutual
I just named off four major banks that
are in the US what O'Neill's work will
do is study where let's say we're
studying Citigroup worst citigroup is in
comparison with others in the scepter
he's not as interested in how citigroup
is doing as a stock or house any group
is doing as a stock compared to all
other stocks he's interested in how
citigroup is doing compared to others in
its sector so it's a relative strength
indicator that's done in McNeil
philosophy in his book how to make money
in stocks that helps you gather the
strength of a sector itself and a stock
within a sector O'Neill also uses a form
of bar chart which can be done very
successfully with point and figure that
identifies where a breakout point is for
a stock you know my coffee and logic
this is called springboard it's a spot
where the market will hush gives an
example we'll be moving down start to
move up and hit a little edge that's
called the pivot and that pivot is where
the market could trigger that stuff to a
massive breakout or if it doesn't
trigger up it'll hold so pivot pivot
logic is what I'm Neil was studying or
springboard with my coffee at logic
helps you know when a stock is coming
close to a buy and opposite of what you
may typically think O'Neill buys on the
way up never on the way down he wants
the stuff to already be doing well not
doing poorly he doesn't want to buy a
value stock he wants to buy a stock
that's already valued I'd highly
recommend how to make money in stocks
and I recommend that you read this book
many times start to study the charting
methodology and use it in comparison to
point and figure charity