How To Make Money In Stocks

How To Make Money In Stocks: A Winning System in Good Times or Bad, 3rd Edition
by William J. O’Neil

This book is the driving factor for most of my strategies. It’s a simple book to read with a very clear cut formula for buying and selling stocks. It gives several basic things to look for in stocks (earnings, institutional support, etc.) and also gives a primer on chart patterns. Whether your trading or investing for the long term, this book will lay down a simple plan for screening growth stocks and will get you excited about playing the market. While I don’t agree with everything O’neil says, i.e. I believe you should set your stops in relation to the support rather than at a hard percentage below your buy point, there is definitely a lot of valuable information. At times the book reads like an advertisement for Investors Business Daily (since he was the founder of the paper), but you can derive most of the information he talks about on your own with the internet now. You’ll want to read other books to get some depth on the things he touches on, but if I had to pick only one book to recommend this would be it.