How Good Is O’Neil?

How could it be that so many traders and investors lose cash on the market, while others-like writers Gil Morales and Chris Kacher-have shown the ability to earn huge earnings on investment? It took years to identify, analyze, catalog, and verify the characteristics of earning shares for O’Neil to perfect his system finally.

Authors Gil Morales and Chris Kacher save the time and-if you’re a trader, money-by attracting one extensive guide jointly, the commonsense investment philosophies that permit them and one to Trade Like an O’Neil Disciple. This book is an excellent addition to the CANSLIM literature. To understand this book put in place in the grand scheme of trading literature, I must digress first. If you have been trading for a couple of years and have read some of the classic literature on trades (e.g., Market Wizards series), you understand that the vast majority of successful traders are trend fans. The objective of trend supporters is to fully capture trends in marketplaces with limited risk.

The guidelines of trading that all trend followers adhere to are letting income run, cutting deficits brief, and manage risk. O’Neil is in his core a craze follower. He suggests cutting loss at 7-8% or less. How good is O’Neil? According for some accounts, O’Neil comes with an average annual return of over 40% for nearly half a century (1962 – present).

That’s much better than other people with such a long-term background. His numbers are better than those of Warren Buffet, Peter Lynch, and even George Soros. Some have argued that given O’Neil’s great rate of return over such a long period, why then isn’t he as wealthy as Buffet or Soros?

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The answers are: 1. Although O’Neil is definitely very rich (2 Billion plus relating for some accounts), O’Neil doesn’t put all his capital on the market. 2. O’Neil doesn’t operate other’s money, thus he does not have the leverage that Buffet and Soros experienced. 3. O’Neil started with five thousand dollars, while most other big guns started with much more money, either theirs or other people’s money. 4. O’Neil’s trading style doesn’t allow him to trade multi-billion dollars – imagine selling 1 million’s stocks of a little stock at the market whenever your stop loss is hit! So, for whatever reasons, O’Neil is much less wealthy as Soros or Buffet on paper.

But what the Dickens does that matter to you? O’Neil and David Ryan. According to Jack Schwager, Minervini’s average annual compounded return between 1995 and 1999 was 220 percent, including his 155% first-place finish in the 1997 US Investing Championship. Kacher and Morales, the writers of this book, are two more recent outstanding students of O’Neil’s.

So, Kacher and Morales’ numbers speak for themselves – they are among the best. These are like the primary stocks from the No 1 industry group! So, their book is crucial “long” for just about any serious trader. That’s why I had positioned a pre-order almost a year ago before the book was published and when pre-orders became being allowed.