Today, trading & studying the commonalities between the greatest performing stocks is my passion, and what I’ve spent the past 1000+ days focused on
Now onto the first lesson
In the fall of 2018, I signed up for a class called "Introduction to the Stock Market and Technical Analysis" taught by Dr. Eric Wish
This class changed my life.
Here are 10 Lessons Dr. Wish taught me from his over 50 Years of Trading.
(Thread)
Today, trading & studying the commonalities between the greatest performing stocks is my passion, and what I’ve spent the past 1000+ days focused on
Now onto the first lesson
The first lesson Dr. Wish taught me was the importance of overall financial literacy.
Roth IRAs, interest rates, budgeting, building credit the right way.
You need to master money management before thinking moving on to trading/investing.
Throughout the class, Dr. Wish repeated his trading mantra.
As you gain trading knowledge and experience, you'll appreciate the simplicity and depth of this one sentence:
The vast majority of stocks follow the overall trend of the market. This is why the mantra begins with “In a Rising Market”
"At least 50% of the whole game is the general market."
-William O'Neil
For instance, using GMMA charts & looking for strong Red-White-Blue Patterns
This keeps you in uptrends and protects you during corrections
He posts the GMI daily at https://t.co/WWLplpQiA6
One of Dr. Wish’s major influences is Stan Weinstein, veteran trader and the author of Secrets for Profiting in Bull and Bear Markets
Early on in the class we learned to identify stages and why you should only focus on Stage 2 Uptrends & avoid stocks in Stage 4
Price action, along with the weekly 30 MA as a reference point, determines the stage of a stock
Here is an example with $ROKU
Stage 1: Price chops around after a decline. 30 MA flattening
Stage 2: Price breaks out & trends above a rising 30 MA
Stage 3: Price chops around a flattening 30 MA. Price Action is wide and loose
Stage 4: Price breaks down & trends below a declining 30 MA
The Green Line Breakout is one of Dr. Wish’s go-to setups.
It takes place as a stock makes a new all time high, bases for 3 or more months, and then breaks out above that prior high.
I’m very lucky that my first exposure to the market was from someone who emphasized capital preservation and the importance of cutting losses quickly using stop losses.
I’ve naturally been pushed to cash protecting myself from every major correction since 2018.
Every student coming out of the class developed their own set of trading rules addressing:
Market Analysis
Stock Selection
Entry and Exit Rules
Position Sizing
Risk Management
This is an exercise that I would recommend every new trader take part in.
Post Analysis is another habit I learned from Dr. Wish.
We should constantly be studying our trading results, analyzing weaknesses, and creating rules and systems to improve.
I would recommend doing this often, at the VERY least yearly.
As a part of the class we read
1. How I made 2,000,000 Dollars - Darvas
2. How To Make Money In Stocks - O'Neil
3. Trade Like a Stock market Wizard -MM
4. Think and Trade Like a Champion -MM
Full list of recommended books 👇
https://t.co/Fzy9YkIm3o
Another way Dr. Wish looks for high potential stocks is by looking for stocks in strong yellow band patterns where the stock is trending above increasing 10 week & 30 week moving averages
Then you look for consolidations and pullback buys within the uptrend
Dr. Wish looks for a bounce off of support, a lower 15.2 Bollinger band, or a 10.4.4 stochastic cross in an already strong & trending stock.
Ideally this stock also has the CANSLIM characteristics with strong RS and Earnings/Sales.
One of the specific things that Dr. Wish taught me and his other students was to avoid the noise.
Don’t watch CNBC, don’t listen to pundits, predictions, profit targets.
Focus on the chart, what the current trend is.
Follow your process
https://t.co/o2f21GBXci
David was an essential part of the course and helped hundreds of students learn about trading and financial literacy
https://t.co/Nry5cw6Pxk
If you did:
1. Follow @richardmoglen & @WishingWealth
2. Share this quoted tweet with your audience 👇
https://t.co/ImM1GJ3s4h
In the fall of 2018, I signed up for a class called "Introduction to the Stock Market and Technical Analysis" taught by Dr. Eric Wish
— Richard Moglen \U0001f4fd\ufe0f\U0001f6a2\U0001f981 (@RichardMoglen) April 7, 2022
This class changed my life.
Here are 10 Lessons Dr. Wish taught me from his over 50 Years of Trading.
(Thread)
More from Richard Moglen 📽️🚢🦁
What is a True Market Leader / TML (Thread)
(And how to find them)
In one sentence a TML is an institutional quality stock in a leading industry group with superior fundamentals and technicals
These are monster stocks which over the course of weeks and months increase +100% to +5,000%
TMLs are popular with traders/investors whose methodology is based on the CANSLIM system developed by William O'Neil.
He called them Model Book Stocks. Huge winners worth studying to identify common characteristics that they all share
O'Neil studied over 1000 model book stocks going back to the 1880s.
Many are shown and discussed in these must read books
How To Make Money in Stocks, O"Neil
https://t.co/S2sShZedUm
Monster Stocks, John Boik @monsterstocks1
A Few Examples courtesy of @SystematiCK_
Pic N Save
(And how to find them)
In one sentence a TML is an institutional quality stock in a leading industry group with superior fundamentals and technicals
These are monster stocks which over the course of weeks and months increase +100% to +5,000%
TMLs are popular with traders/investors whose methodology is based on the CANSLIM system developed by William O'Neil.
He called them Model Book Stocks. Huge winners worth studying to identify common characteristics that they all share
O'Neil studied over 1000 model book stocks going back to the 1880s.
Many are shown and discussed in these must read books
How To Make Money in Stocks, O"Neil
https://t.co/S2sShZedUm
Monster Stocks, John Boik @monsterstocks1
A Few Examples courtesy of @SystematiCK_
Pic N Save
#Study & #learn from past super #stocks
— SystematiCK Trader (@SystematiCK_) September 26, 2020
Example 22: Pic N Save - 1979
Sharpen your eyes & internalize
- which fundamental and technical setup fuelled the big gain
- how trade management was done
- the importance of acc./distr. volume
Credit to the great W. O\u2019Neil! pic.twitter.com/m888ZaGyMV
More from Traderlion
How to time the market (thread)
There is the old saying that “Time in the market beats timing the market” The chart below from Dr. Wish’s @WishingWealth presentation at the @TraderLion_ conference shows that to be false.
Full presentation: https://t.co/o2f21GBXci
The green line is unattainable realistically, however, missing volatile times during corrections yields better performance than buy and hold and we can aim for the green line.
Investors usually only show the gray and red results.
More
There are many strategies for investing/trading in the stock market operating within different timeframes and with different objectives.
That is of course what creates a market and opportunity. Timing the market may not be what works for you or what fits your goals/lifestyle.
However, everyone involved in the market is here to make money over time and corrections can cause huge drawdowns in the high alpha names negating incredible performance during strong market uptrends.
There is the old saying that “Time in the market beats timing the market” The chart below from Dr. Wish’s @WishingWealth presentation at the @TraderLion_ conference shows that to be false.
Full presentation: https://t.co/o2f21GBXci
The green line is unattainable realistically, however, missing volatile times during corrections yields better performance than buy and hold and we can aim for the green line.
Investors usually only show the gray and red results.
More
There are many strategies for investing/trading in the stock market operating within different timeframes and with different objectives.
That is of course what creates a market and opportunity. Timing the market may not be what works for you or what fits your goals/lifestyle.
However, everyone involved in the market is here to make money over time and corrections can cause huge drawdowns in the high alpha names negating incredible performance during strong market uptrends.
You May Also Like
1/OK, data mystery time.
This New York Times feature shows China with a Gini Index of less than 30, which would make it more equal than Canada, France, or the Netherlands. https://t.co/g3Sv6DZTDE
That's weird. Income inequality in China is legendary.
Let's check this number.
2/The New York Times cites the World Bank's recent report, "Fair Progress? Economic Mobility across Generations Around the World".
The report is available here:
3/The World Bank report has a graph in which it appears to show the same value for China's Gini - under 0.3.
The graph cites the World Development Indicators as its source for the income inequality data.
4/The World Development Indicators are available at the World Bank's website.
Here's the Gini index: https://t.co/MvylQzpX6A
It looks as if the latest estimate for China's Gini is 42.2.
That estimate is from 2012.
5/A Gini of 42.2 would put China in the same neighborhood as the U.S., whose Gini was estimated at 41 in 2013.
I can't find the <30 number anywhere. The only other estimate in the tables for China is from 2008, when it was estimated at 42.8.
This New York Times feature shows China with a Gini Index of less than 30, which would make it more equal than Canada, France, or the Netherlands. https://t.co/g3Sv6DZTDE
That's weird. Income inequality in China is legendary.
Let's check this number.
2/The New York Times cites the World Bank's recent report, "Fair Progress? Economic Mobility across Generations Around the World".
The report is available here:
3/The World Bank report has a graph in which it appears to show the same value for China's Gini - under 0.3.
The graph cites the World Development Indicators as its source for the income inequality data.
4/The World Development Indicators are available at the World Bank's website.
Here's the Gini index: https://t.co/MvylQzpX6A
It looks as if the latest estimate for China's Gini is 42.2.
That estimate is from 2012.
5/A Gini of 42.2 would put China in the same neighborhood as the U.S., whose Gini was estimated at 41 in 2013.
I can't find the <30 number anywhere. The only other estimate in the tables for China is from 2008, when it was estimated at 42.8.