I first read the book The How to Make Money in Stocks Complete Investing System: Your Ultimate Guide to Winning in Good Times and Bad in 2013. I attribute a lot of my success in trading to this book!The book was initially brought to my attention by a friend in a stock trading chatroom that is strong focused on trading momentum stocks. This friend basically told me that the old adage ‘buy low sell high’ was only for idiots and people who did not understand the stock market and would ultimately lose money. He recommended buying this book and learning all the chart principles, tips on picking the best stocks and the strategies for trading them.
The teaching philosophy of the book focuses on what can be learned from looking at over 100+ stock charts of over 100 of the biggest moving profitable stocks in American history from 1880 to 2009. It is a very unusual book in that the first 100 pages are completely dedicated to showing the weekly charts of these big winning stocks throughout history! Each of the first 109 pages has a picture of a ‘super winner’ chart on it, like the one shown below.
These charts are worth 100 times the cost of the book alone. The principles that are discussed in the text often refer to the charts as real examples of the academic principles. Each chart is annotated clearly showing buys, sells, volume, RSI and what the indices were doing. You can learn so much from these charts! There is even test charts to see if you can actually use the principles that you are taught to predict stock price movement! In todays online day trading frenzy this is a refreshing strategy, where only weekly charts are considered and much longer term price action patters such as cup-with-handle patterns, wedging, square box and proper consolidation patterns are all discussed and drilled into the reader.
The winning system CAN SLIM is detailed over 200 pages which discusses topics such as reading the charts, earnings, growth, supply and demand and market direction. The most valuable message from this section (besides learning to read the weekly charts like a pro) is that you should buy stocks that have institution sponsorship, are leaders in their industry, show year over year increased growth and earnings that have formed long bases in the weekly charts. Buying stocks that are breaking new highs and have these other aspects is the key to success in medium term swing trading.
Part 2 discusses the equally important and crucial idea of knowing when to cut your losses and money management. This section is very good indeed and has saved my bacon more than once!
I strongly recommend this book! It will always have a place on my book shelf and I read it once a month to refresh the way I think about growth stocks.
“How to Make Money in Stocks is a classic” Any Investor serious about making money in the market out to read it.” – Larry Kudlow, host, CNBC’s The Kudlow Report
For just a few dollars you can buy this classic book and change your investment life! –>>> The How to Make Money in Stocks Complete Investing System: Your Ultimate Guide to Winning in Good Times and Bad
Other useful link: Momentum stock trading teaching resource + alert service + chatroom that I have been part of for 2 years and highly recommend!