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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_

Dec 10, 2024
Topping is an ongoing process. It doesn't happen in one single session.

Institutions unwind positions over weeks/months, the same way they accumulate positions over weeks to months.

Here's what leading stocks are doing right now (that's a big cause for concern):
Let's start with $MSTR.

After getting super stretched above the 10EMA, $MSTR put in a Major Sell Bar on 11/21/2024.

You can see in the days following, gaps were sold.

The RS line has also flipped negative vs. its 21EMA.

$MSTR has been a leading name for a good while, so taking note of this distribution is important... Always be open to the other side of the trade!Image
Here's $APP.

This name has been nearly a perfect trade since breaking out in September, but yesterday it flashed a Major Sell Bar for the first time.

Down 15% on huge volume is a warning sign you must be aware of, no matter how big of gains you may have on the position.

From here, be on the watch for support at the rising 20 EMA/SMA, and continue to search for sellers to show up in a big way.

The $400 psychological level is key to watch as well.Image
Read 13 tweets
Dec 7, 2024
Chasing a big breakout that you missed is the fastest way to go broke as a trader.

But there's one setup to rely on to get in big winners (even past their pivot points):

Inside Days.

Here's everything you need to master this setup (and start trading it ASAP):
By the end of this post, you'll have mastered:

→ What an inside day setup is
→ Why it's so reliable on names already showing momentum
→ Different ways to enter/exit the inside day setup
→ 3 examples to study & deep dive
→ 1 easy scans to run

Let's get going.
What is an inside day setup?

An inside day occurs when today's price is fully within the high & low of yesterday's bar, hinting at short term consolidation before price continues in the current direction.

It's also best when the inside bar comes on low volume.
Read 14 tweets
Nov 17, 2024
Stanley Druckenmiller hasn't had a losing year in his entire 4.5 decades as a trader.

He recently sat down for a talk that every retail investor/trader needs to listen to.

We've broken it down for you into 10 clips (covering TA, risk management, selling losers, & much more): Image
As we said above, Druck's never had a down year.

We're sure you can imagine why that's important, but he says drawdowns are stressful, and staying out of them keeps you level headed.

More ↓
One idea Druck is obsessed with right now?

Whether we're in 1970s or not when referring to inflation.

No matter what you think about the macro, it's valuable to see the world's top investor looking for historical precedents to help him position in current times.
Read 14 tweets
Nov 7, 2024
A volume signature we saw a lot of today:

Pocket pivots.

One of the easiest patterns to use to see if a stock is under institutional accumulation.

Here's everything you need to know about one of the market's most reliable signals (so you can spot strong stocks instantly): Image
By the end of this post, you'll understand:

→ What a pocket pivot is
→ How to spot it
→ How to trade it

Let's dive in ↓
What's the definition of a Pocket Pivot?

Today's up volume must be larger than any of the down volume in the prior 10 days.

This concept was first popularized by legendary trader William O'Neil and is a key component of the CANSLIM trading method. Image
Read 12 tweets
Oct 21, 2024
Let's start the week off talking about two simple steps to improve your odds at becoming a profitable, high-performing trader:

→ Step 1: Trading Stocks Above Their 50DMA / 10WMA
→ Step 2: Trading Stocks In The Top 40 Industry Groups

Digging a little deeper... ↓
Step 1: Trading names above the 50DMA / 10WMA has to be your foundation.

You should never argue with the major trend at play on any given chart.

When institutions are accumulating stock, your opinion doesn't matter. Their $ will drive price higher.
Step 2: Trading names in Top 40 Industry Groups

Majority of the time, you're going to find a life-changing stock that's in a broader group move.

Think of $NVDA currently (AI) or $TLSA (EVs) in 2020/2021.

It should be obvious when a stock's strength is tied to its sector. Image
Image
Read 11 tweets
Oct 14, 2024
The market's most explosive pattern has generated millions for traders.

The pattern? A High Tight Flag (HTF) breakout.

But what does this setup look like & how should you be trading it?

Here's the Ultimate Guide to Trading HTFs (that'll take your trading to the next level): Image
By the end of this post, you'll have mastered:

→ The key characteristics of a High Tight Flag
→ Proper buy points of an HTF
→ Proper sell points of an HTF
→ Scans to spot HTF setups
→ 5+ examples

Let's dive in ↓
To spot & trade the market's most powerful pattern, you gotta know what to look for.

· A prior uptrend of 100% or more (pole of the flag)
· Pole length of 8 weeks or less
· A flag of 3-5 weeks
· Flag depth ≤ 25%

The chart resembles a flag with a pole, hence the name! Image
Read 20 tweets

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