The investing style doesn't fit my believe in the market. The Only Way to Guarantee Your Fair Share of Stock Market Returns for me to put too much thought and effort in trying to guess at read charts and understand the idea behind breakout patterns. Nov 03, Michael rated it it was amazing.
Monster Stocks: How They Set Up, Run Up, Top and Make You Money [John Boik] on devmediavizor.archidelivery.ru *FREE* shipping on qualifying offers. Everything you need . Everything you need to know to get in on the ground floor of the next Google! Monster Stocks gives you the expert guidance you need to add.
Great book if you are a student of O'Neil. Kien rated it really liked it May 03, Taha rated it it was ok Apr 10, Kajal rated it liked it Jan 08, Brian rated it it was amazing Feb 26, Thienkhai rated it it was amazing Apr 06, Eric Iannuzzi rated it really liked it Jan 31, Vignesh Pitt rated it really liked it Feb 23, Joshua rated it really liked it Jan 10, Leonel Aguirre rated it really liked it Dec 25, Angelo rated it really liked it Sep 23, Jas F marked it as to-read Mar 15, Eric marked it as to-read Sep 20, Prashant B marked it as to-read Apr 02, Margaret added it Feb 10, Greg marked it as to-read Jun 12, Xuan Toan marked it as to-read Aug 02, Carlos Melissa marked it as to-read Apr 21, Ethan Zheng marked it as to-read May 06, David Kolka is currently reading it Dec 19, Carl Chavez added it Feb 23, Keith Beck marked it as to-read Oct 01, Amit Arora added it Jan 22, Simo Elmou added it Mar 14, Hai Do added it May 04, Araz marked it as to-read Jul 04, Bill marked it as to-read Aug 06, Erez marked it as to-read Dec 01, Arjun marked it as to-read Aug 02, Keith Beck marked it as to-read Sep 06, Dario marked it as to-read Aug 05, Monster stocks have appeared in almost all uptrends.
The compounding from just one several hundred point move, say three times in a 10 year period, can be staggering. The study of past winners is the best way to recognize and handle future winners. History does repeat itself in the stock market. It will help prevent you from getting overconfident or greedy or miss key sell signals such as a climax run.
Most other things are noise and confusion factors. Simpler strategies generally win out over more complicated ones.
The price action —the single most critical piece of information.. The volume activity —and its interplay with price. The 50 day moving average —used as the lower boundary during run-ups. The day moving average —used as the lower boundary during corrections. The RS Relative Strength line —used to measure strength against the market.
The RS line will often soar to new highs just before or just as the monster stock is breaking out.
Also mentioned several times is the use of the 21 day moving average. The really strong stocks will bounce off it and not reach the 50 day moving average. It can then be used as a secondary buy point. Revenue growth —ideally triple digit and accelerating.
Earnings growth —ideally triple digit and accelerating. In the very best monster stocks the fundamentals are: Knowing your possible exit strategies rule 5 can be the most important element in profit retention.
There are specific steps to take and rules to follow. Boik covers the steps first and the rules second. Monster stocks tend to follow a common template. The setup—apply Rule 1 and Rule 2. Cup-with-handle or cup-without-handle bases. Look for ultra-strong Fundamentals. Look for the innovative new company, new product or service that will drive accelerating sales and earnings.
The breakout—apply Rule 3.
Look for well above average volume. Look for the RS line at new highs.
After the breakout—apply Rule 4. Assuming you now own the stock, the next three steps all focus on when to sell it. SELL on a sharp high volume reversal below the breakout point. The run-up—apply Rule 4. BUY more on the first or second orderly pullback to the 50 day moving average. SELL on a prolonged drift below the 50 day moving average [no specific criteria]. SELL on a high volume plunge through the 50 day moving average. SELL on a violation of your trailing stop [my addition]. The top—apply Rule 5. SELL on a climax run.
The best way to keep your emotions out of the decisions is by strict adherence to the rules. This is the signal that the preceding correction or bear market is over. You can look forward to downtrends. They will put you back into cash, give you a breather and, most important, provide the proper base building necessary for the next round of setups.
Once in MCR mode, search out stocks with: Very strong Fundamentals—Sales and Earnings. The stronger the better. Triple digit is better yet. The fundamentals of the next monster stock are improving dramatically during the market downtrend, but, because of the market downtrend, the price is lagging while the base is being formed.
Good basing characteristics in the recent correction or bear market.