Trade Like an O'Neil Disciple: How We Made 18,000% in the Stock Market

3.11. THE SECRET INGREDIENTS

The past two chapters have given you a firsthand view of how big money is made in the market. You may have been surprised to find out that it is not rocket science. The most important ingredients are a decent bull market trend and sound buy and sell rules. There is no need to "out-trade" the market, staying ahead of every wiggle in the general averages. This only puts one in the position of having to be right far too often. It is better to figure out where you are right and then sit tight. So once one has latched onto a big, winning stock, sitting more and thinking less are the two most critical ingredients when it comes to making big money in the market.

Hopefully, you have gained some insight into where one should focus one's attention. Most big, winning stocks, if you use any of the O'Neil tools to screen the market for stocks, will be "in your face" in a bona fide bull market. So it is not as if strong, leading stocks will be hard to find in a bull market. In most cases, it is simply a matter of finding a proper, low-risk entry point, paying close attention to and watching for proper secondary buy and add points as you build and concentrate your position, and then letting the market take care of the rest. Ironically, we find that when we are making big money and our decision making is flowing well as we trade "in the zone," it begins to feel effortless. The key is getting to that point, which is what the rest of this book is about.