The lesson I take from Zanger, and trading in general, is that you can't inpose YOUR timeframe on the market. I once traded with an older gentlemen (who tought me a lot, btw) and he said "sometimes you want to be an investor, as opposed to a trader. You need to sit on your hands sometimes and let the trade run". I think we all assume that by trading in the short term, we are limiting risk, and we are, but we are also limiting our return by not letting a trade run beyond what we THINK is the optimal timeframe. I think it's important to trade mutilple timeframes and not get wrapped up in what the market will give on minute or daily basis.
I think O'Neill only holds about 6 or 8 stocks at a time. Learn his methods and then "tweak" them to suit your own personal style and financial capacity. He cuts losers and increases winners. Most do the opposite Pick out the real thoroughbreds and stick with them for the ride. I have a friend who was in AAPL, GOOG, HANS, and NTRI. Stayed with them for months during the ride up, BUT got out close to the top in all of them. She reads the charts and can see the climatic buying at the top. She is in for several thousand shares of each. It is more simple than some people make out to be. SteveD
I have a question about O'Neill's (and Zanger's) systems -- do their stock picking strategies work only in bull markets? Or have they made good returns even in bear markets too?
1) He meant he has learned from them but not by personal mentoring. 2) Not at all if we just listened. Our ego gets in the way and we think that we can do better. In my brokerage days I had an opportunity to work with brilliant system developer and if I had just listened I would be better off. it took me about 5 years and lots of bumps to put it all together and it is not that far from i was told 8 years ago. I would tell a newbie that if he does not have a life long passion for markets, do something else.
correct when the markets choppy are going down his news letter is awful. he has really had no picks in 5 weeks as the markets fallen. he's making 125k a month doing that little bs news letter. he's a great trader no doubt but i don't think people need his newsletter