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May 5, 2021 20 tweets 13 min read Read on X
📚TraderLion’s Recommending Reading List 📚 (Thread)

⬇️
1. How To Make Money in Stocks - William O’Neil

William J. O'Neil is the founder @IBDinvestors. His #CANSLIM methodology and studies have influenced us at TraderLion & many authors including those in this thread.

amzn.to/3tfMp9u
2. Reminiscences of a Stock Operator - Livermore

Reminiscences is the biography of Jesse Livermore, one of the greatest speculators who ever lived. More than 80 years later, it is still one of the most highly recommended investment books ever written.

amzn.to/2Rtkt4R
3. Jesse Livermore’s Methods of Trading in Stocks

Livermore started trading in securities when he was fourteen years old. This book is derived from a series of interviews between Richard Wyckoff and Jesse Livermore from the 1920s.

amzn.to/33fnsAo
4. How to Trade in Stocks - Livermore

This book sheds even more light on Livermore's philosophy & methodology with a ton of insights into his trading formula.

amzn.to/33iFge0
5. Trading in the Zone - Mark Douglas

Douglas uncovers the underlying reasons for lack of consistency and helps traders overcome the mental habits that cost them money. This is a MUST-READ for all traders/investors.

amzn.to/3tnn8KD
6. The Disciplined Trader - Mark Douglas

The Disciplined Trader focuses on how traders can take control of their trading behavior by developing a systematic, step-by-step approach to winning week after week, month after month.

amzn.to/3umdadR
7. How I Trade and Invest in Stocks - Richard Wyckoff

Wyckoff leverages over 33 years of experience in the markets in this book. His primary reason for writing this was to help new investors who find the markets too complex.

amzn.to/3hb0iTM
8. Secrets for Profiting in Bull and Bear Markets - Stan Weinstein

All traders/investors should read this book as it offers the skeleton of which phases stocks go through again and again over many years. Timeless principles.

amzn.to/2QTXcc8
9. The LifeCycle Trade: How to Win at Trading IPOs - @EBoboch @KGD_Investor & team.

This book presents the conclusions of an extensive study of Super Growth stocks and IPOs. Another must-read.

amzn.to/3b5DGQR
10. Monster Stocks: How They Set Up, Run Up, Top and Make You Money - @monsterstocks1

Monster Stocks gives you the tools you need to land super-performing stocks and handle them for maximum profit, market cycle after market cycle.

amzn.to/3vANj1U
11. Lessons from the Greatest Stock Traders of All Time - @monsterstocks1

This book follows Livermore, Bernard Baruch, Gerald Loeb, Darvas, and WON and emphasizes their processes and common characteristics even as they traded in different time periods.

amzn.to/3ulniDq
12. Market Wizards: Interviews with Top Traders - @jackschwager

Schwager interviewed dozens of top traders and while the details differed, they can all be boiled down to the same formula: solid methodology + proper mental attitude = trading success.

amzn.to/3b2bVZm
13. Unknown Market Wizards: The Best Traders You’ve Never Heard of - @jackschwager

This book continues on the popular Market Wizards series, interviewing exceptionally successful traders to learn how they achieved their performance results.

amzn.to/3h8lc67
14. Trade Like a Stock Market Wizard - @markminervini

Minervini unveils his trademarked stock market method SEPA, which combines careful risk management, self-analysis, and perseverance. He explains his process for achieving triple-digit returns.

amzn.to/2PTF3ec
15. Think & Trade Like a Champion - @markminervini

A sequel to Trader Like a Stock Market Wizard. This is another gem by Mark which expands upon his first book.

amzn.to/2QW1hN5
16. Technical Analysis Using Multiple Timeframes - @alphatrends

This book is an excellent introduction to technical analysis and reading price action. It goes through how to read trends, market structure, and the psychology of price movement.

amzn.to/3vWAG1t
17. The Hour Between Dog and Wolf - John Coates

This book covers a series of experiments that identifies a feedback loop between testosterone & success that is responsible for how we feel after a winning or losing streak. Very fun read.

amzn.to/2Sw1jvB
18. 24 Essential Lessons for Investment Success - William O’Neil

We had to end with another book from WON! This one breaks down his 40 years of experience studying the markets into a handful of easy-to-digest lessons.

amzn.to/3b4V2gC
19. How I Made $2,000,000 in the Stock Market - Darvas

Let's not forget Darvas! In this book, he documents his techniques including his unique Box system. This is a classic even to this day and we highly recommend reading it.

amzn.to/3thoZRb

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More from @TraderLion_

Feb 19
One question we get a ton — does the 8% stop loss rule from William O'Neil still work?

While it depends on the exact scenario, we've heard a different type of strategy from other market wizards:

Here's more on the the 3-4-5 rule:
Traditional CANSLIM methodology taught an 8% stop loss from a proper buy point, but even those who traded with WON said his stops were much tighter.

And if you study great traders like @markminervini or @Upticken, you'll see they implement the 3-4-5 strategy (or something similar).

Here's what that means:
Instead of setting your stop 8% from a proper buy point (and not being able to size like a superperformer), split your stops up like this:

→ 3% stop loss: sell 1/3
→ 4% stop loss: sell another 1/3
→ 5% stop loss: sell the final 1/3

You've built in wiggle room for price while also being able to put upwards of 25% equity in a name without risking more than 1% of your capital.
Read 5 tweets
Feb 16
It takes the best traders 5-7 years to find a system that works for them to ultimately become profitable.

Here are 10 lessons (from market wizards & hundreds of top traders) that will shorten your learning curve significantly: Image
Lesson 1: Trading Takes Patience & Hard Work

There's no shortcut to success in the markets.

William O'Neil is a perfect example of this — he put in the time necessary to build a system that fit his personality (CANSLIM).

Study the greats, & you set yourself up to be one.
Lesson 2: Stay Positive, Focused, & Disciplined

@Upticken is a great example of always staying positive no matter what.

Use the minor setbacks as lessons, always focused on improving and becoming the best trader/person you can be.
Read 13 tweets
Feb 14
William O'Neil was a true visionary.

From being the youngest ever to own a seat on the New York Stock Exchange, to turning $5,000 into $200,000 in less than a year.

Here's his story & a deep dive into the principles behind one of the greatest traders ever: Image
WON was from the souther plains of Oklahoma and went to college at Southern Methodist University.

His investing background was heavily influenced by great traders like Nicolas Darvas, Gerald Loeb, and Jesse Livermore.
Another name that stuck out to him was Jack Dreyfus, who in the late 1950s and early 60s had one of the best performing mutual funds in the country.

WON studied his methodologies, what worked + what he was doing differently than everyone else, and eventually created CANSLIM.
Read 19 tweets
Jan 31
Earnings season is here, and the best way to take advantage of it is by mastering one specific edge:

The High Volume Edge.

This is the same pattern that made traders like @Qullamaggie millions.

Here's everything you need to know (so you come prepared to start next week): Image
What is the High Volume Edge?

Simply put, you're looking for huge gap ups (10% or more) on BIG volume. Big volume is:

· The Highest Volume Ever (HVE)
· The Highest Volume Since IPO (HVIPO)
· The Highest Volume In 1 Year (HV1)
· The Highest Volume Since Last EPS (HVLE)
Why is High Volume an Edge?

After a news surprise or EPS report, institutions are forced to react. These reactions are either:

· Accumulate shares in a big way
· Distribute shares in a big way
· Do nothing (rare)

Volume is the easiest way to identify their actions.
Read 15 tweets
Jan 14
There's no better way to study fear & greed than by analyzing historical corrections (perfect for this environment).

Here are 8 you must study, ranging from the 80s to 2018:



1: Feb 1980

Peak Date: Nov. 28, 1980
Percent Loss: 27%
Absolute Low: Aug. 12, 1982
News: Recession Image
2: October 1982-July 1984

Peak Date: October 28th, 1983
Percent Loss: 14$
Absolute Low: July 24th, 1984
News: Heightened hostilities in the Persian Gulf, Interest Rates, 5 year bull prior without significant pullback, computerized trading Image
3: August 1987

Peak Date: August 25th, 1987
Percent Loss: 34%
Absolute Low: December 4th, 1987
News: The Plaza Accord & Louvre Accord Image
Read 10 tweets
Jan 13
Paul Tudor Jones was made famous for his $100,000,000 short in the 1987 Black Monday Flash Crash.

His net worth now exceeds $8 billion.

Here are 9 snippets from his very own documentary, highlighting the mindset & principles behind one of the world's best traders: Image
The first minute of the documentary sets the tone for what's to come.

PTJ clearly has a risk first mindset... ↓

"Risking 10 cents to make $8...that's not a bad trade..."
"Trading requires an energy level... and it's very difficult to sustain it 24 hours a day, which is what this requires."

To be a successful trader, you have to know when to push the gas and when to step away.

That feel and intuition is only built over time.
Read 12 tweets

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