Legal Law

How Legendary Traders Made Millions

One way to quickly achieve success in life is to have a mentor or learn from people with experience in your area of ​​interest. The same applies to investing in stocks. So it’s a good idea that John Boik wrote this text titled “How Legendary Traders Made Millions”, which has as a subtitle, “Leveraging the Investment Strategies of the Best Stock Traders of All Time”, to help to (potential) investors. .

Boik, a controller and former stockbroker, has been the featured guest on business investment radio shows that have aired across Canada and the United States.

This author says that legendary trader William O’Neil once described the stock market as “a maddeningly contrary beast.” Boik adds that for O’Neil, the best traders are those who move with the market and not against it. The author emphasizes that it is necessary to learn from the big boys how to make big profits in bullish, bearish, and non-trending markets alike. He claims that in this text, he offers you guidance on how O’Neil and other legendary merchants rode “the beast” to fortune through booms and busts alike – and how you can too.

Boik describes eight of the best traders of all time, focusing on the historical trades and the strategies behind the legends. With the help of exclusive charts and data from “Investor’s Business Daily,” it explores, decade by decade, how the market performed over the past century and how each trader took advantage of different market situations. This author brings you the details on dozens of major operators, described in the context of the economic, political and market environments in which each operator’s strategy flourished.

He emphasizes the need for you to learn from legends, how to use historical patterns to read current market cycles and predict the performance of individual stocks based on emerging trends. This expert also analyzes the key points of the spot in the highs and lows of the market; how to discover the best time to buy individual stocks based on emerging trends, as well as knowing when to sell stocks to secure profits.

Boik reveals to the most successful stock market traders of the last 100 years, mistakes made by investors and patterns in the stock market that just repeat themselves. He says that Jesse Livermore in 1923 and then William O’Neil in 2003 remind us that the same mistakes made cycle after cycle cause losses generation after generation of stock market participants. This author clarifies that each, through extensive experience, reminds us, as Livermore did in 1940 and O’Neil in 1988, that the most successful stocks follow certain patterns and that stock market cycles also repeat themselves over time. throughout history.

Regarding the structure, this text is divided into 12 chapters. Chapter one is christened “Industrial stocks produce a millionaire (1897-1909”). Boik explains that Baruch was one of the most successful stock traders in history and the transaction reiterated that his favorite time to buy stocks was when the general market began a strong rise. trend after exiting a low market period.

The author adds that Baruch’s observation skills and experience of observing and participating in markets since 1891 gave him the confidence to seize solid opportunities when the market presented them. “He made most of the mistakes that many market participants make in the market over the past six years when he was just starting out and learning exactly how the market operated. But he learned from his mistakes, decided he would never give up, and stayed quick to study. “reveals Boik.

Chapter Two is labeled “Some Land Mines Bypassed for Profit (1910-19)”. Here, the author says that the year 1912 witnessed the end of the long recession in February that had started two years earlier. Boik adds that it should be noted that these flat years were very frustrating for many active traders at the time. Explain that the first reason was because of Jesse Livermore. Boik explains that when the two-year recession ended in January 1915, the war in Europe had started and some uncertainties were removed, causing the market to start to recover. The author reports that after a slow start in January and February, the market jumped forward in March.

He reveals that when the United States began to become the supplier of weapons and food for the war, many leading stocks seemed poised for solid gains. Boik says that some of the leading stocks that stepped forward were American Smelting, Bethlehem Steel, General Electric, etc. He adds that Livermore bought Bethlehem Steel as it rose sharply to $ 98 a share. According to him, the next day it hit $ 145 and Livermore sold out for a quick profit of $ 50,000.

In Boik’s words, “It turned out that you actually broke one of the vital rules of the trade – don’t be too quick to sell a winning leader … Livermore would actually end the year with $ 150,000 in his account, as he clearly stayed in tune with a rising market and made business and investment decisions in the context of a healthy and profitable market environment. “

Chapter Three is titled “Shrewd Traders Made and Kept Millions (1920-29).” In this chapter, the author says that markets started the 1920s where they left off in 1919 by sliding downward. Boik adds that Richard Wyckoff, during his ongoing study of the markets, commented in 1920 that the market was changing. Boik explains that Wyckoff noticed after the war ended, that there were many more industries vying for market leadership.

The author reveals that through his observation, he (Wyckoff) concluded that he needed more than just pure market action to discover the true outstanding leaders for the future. And with this new expanded study in mind, Wyckoff set out and formed Richard D. Wyckoff Analytical Staff, Inc., of which he (Wyckoff) was the sole owner, says Boik.

According to the author, “Wyckoff was more of a short-term participant, always making sure to keep his earnings when he had them rather than giving them back … He limited his trades to active lead stocks, and conducted his own research. He normally traded. what he called the ‘four horsemen’ of speculative stocks, which were American Can, Studebaker, US Steel and Baldwin Locomotive … “

In chapters four through 11, Boik analytically analyzes the concepts of patience and flexibility (1930-39), illustrated with Gerald Loeb; victory creates more opportunities for a legendary merchant (1940-49), illustrated with Gerald Loeb; Innovative Actions That Produce Great Profits (1950-59), illustrated with Nicholas Darvas; a ‘go-go’ bullfight with profits that studied history (1960-69), as exemplified by Jack Dreyfus and most were flogged except the best (1970-79), illustrated with William O’Neil. Other concepts are: a great merchant who leaves the bull behind and avoids collapse (1980-89), also illustrated with William O’Neil; New Technologies Producing Unprecedented Opportunities (1990-99), also illustrated with William O’Neil; and avoiding the tracks of the bears maintains previous gains in expert accounts (2000-2004), exemplified by Jim Roppel.

Chapter 12 examines the concept of learning from the lessons of history and great traders. The author claims that one of the most successful stock traders in history is worth listening to. Boik adds that he has probably studied more than anyone else, and in meticulous detail, the history and action of the stock market and the leading stocks that made the best profits throughout history.

Stylistically, this text is high up the ladder. For example, this author is able to achieve analytical precision due to his effective deployment of the communication vehicle, that is, language. The depth of Boik’s research is especially underscored by the finer details and reflective illustrations given to each chapter. It generously uses graphic embroidery to visually reinforce its conceptual details.

However, some chapters need to be harmonized to be compact, especially those whose very legends are used to exemplify. Punctuation errors technically called “handwriting errors” are also noted in Stylistics, for example, “Through his observation, he concluded that he needed more than pure market action to discover the true outstanding leaders for the future … With this new expanded study in mind he stated … “(pages 34-35), rather than” Through his observation, he concluded that he needed more than pure market action to uncover the true outstanding leaders to the future … With this new expanded study in mind, he put … “

Finally, this text is a classic. It is a must read and the advice should be applied for seasoned investors, inexperienced and with intention. It is a textual instrument of investment strategy in stocks.