Momentum Trading Strategy

Notes

Becoming a Better Trader

Building and improving your trading process over time: how to learn, which method to use, and how to measure progress.

Showing 101–120 of 217 notes

View on Substack ↗

Most Traders Don’t Have a Strategy Problem

Most traders think they need a better setup.

A better indicator.

A better stock pick.

But usually, that is not the real problem.

The real problem is that they are weak in one of the three pillars:

  • Risk management.

  • Mental discipline.

  • Strategy & Tactics.

You can have a great setup and still lose if your risk is too big.

You can understand risk and still fail if you cannot follow your rules under pressure.

You can be mentally tough and still struggle if you do not have a strategy with positive expectancy.

Successful trading is not built on one thing.

It is built on all three working together.

That is how you move from random results to consistent profitability.

View on Substack ↗

Module 7 of the Momentum Trading Strategy Course is now live:

Building a Trading Plan & Trade Review

This is the stuff that separates professionals from amateurs.

Great traders do not just find stocks.

They build a plan.

They know why they are taking the trade, where they are entering, where they are wrong, how much they are risking, what they will do if it works, and what they will do if it fails.

That is not optional.

Every great organization, military unit, leader, and operator plans before execution. They also review afterward so they can improve.

Trading is no different.

If you want to trade like a professional, you need a process for:

Planning the trade.

Executing the trade.

Managing the trade.

Reviewing the trade.

Improving from the trade.

That is what Module 7 is all about.

The full video and slides are now available for paid subscribers.

https://tradingmomentum.substack.com/p/momentum-trading-strategy-the-100-443

On SubstackMomentum Trading Strategy: The 100-Year Playbook Behind the Biggest Winning Stocks — Module 7 Building a Trading Plan & Trade Review
View on Substack ↗

Stop Looking for the Easy Way

If you are not finding success in the market, I’ll challenge you with this:

Stop looking for the easy way.

Put in the effort.

Take the Momentum Trading Strategy Course.

The course covers everything from understanding the market, to stock selection, to precision entries, trade management, risk management, and more.

And don’t half-ass it.

It has many of the same concepts taught in the Master Trader Program, a course that costs $5,000.

The course gives you the foundation.

The Momentum Trading Strategy Web App gives you the tools.

  • A relative strength dashboard.

  • A relative strength stock screener.

  • A watchlist tool.

  • Risk management and position sizing tools.

  • Trade planning features.

  • A performance tracker.

You also get MTS indicators to help with managing your trades.

And every weekend, you get the Big Picture Market Pulse to help you understand the market before stock screening.

Is it the fanciest tool and course in the world?

No.

But it gives you what you actually need.

  • A process.

  • A framework.

  • A way to find leaders.

  • A way to manage risk.

  • A way to review what you are doing.

And right now, you can get access through the annual plan for roughly $10 to $15 per month.

Even if you only find value in one part of it, the cost can justify itself.

The Big Picture Market Pulse can help you understand the market before the trading week starts.

The screener can help you find the strongest stocks in the strongest groups.

The course can give you the trading foundation.

The risk tools can help keep you from blowing up.

The performance tracker can help you learn from your own trades and mistakes.

Then you can take what you learn, practice it in a simulator, build confidence, and fine-tune it around your own personality, timeframe, and process.

After that, start small.

Use money you are willing to lose.

Build skill before size.

That is how you give yourself a real chance at long-term success.

Not by chasing alerts.

Not by looking for shortcuts.

By learning the process and doing the work.

The reason so many people aren’t successful is because they are not doing all of this stuff.

Period.

I did not realize what it really took in the beginning either.

But once you do, you have two choices:

Keep looking for shortcuts and keep losing money.

Or put in the work.

View on Substack ↗

The Most Underrated Thing I Offer

The most underrated high-value content I have to offer is probably the Momentum Trading Strategy Course.

It is modeled after the course that had the biggest impact on me: the Master Trader Program, a $5,000 course that helped shape how I think about markets, setups, risk, trade management, and process.

But I also built this course around everything I’ve learned from more than 20 years of trading and studying the greatest growth and momentum traders of all time.

William O’Neil.

Nicolas Darvas.

Mark Minervini.

Jesse Livermore.

Dan Zanger.

And many more.

Modules 1 through 6 are already live, with Module 7 coming in the next few days.

The course walks through the foundation of growth stock and momentum trading, including market direction, leadership, relative strength, stock selection, entries, trade management, exits, risk management, and position sizing.

Module 5 covers what most traders are looking for: precision entries, trade management, and exits.

Module 6 covers what most traders overlook: risk management and position sizing.

That combination matters.

Because finding a great stock is only one part of the process. You still need to know when to enter, where to place your stop, how much to risk, how to manage the trade, and when the evidence is telling you to exit.

That is what this course is designed to teach.

Not alerts.

Not random stock picks.

A real foundation.

If you are a paid subscriber, you already get access.

https://tradingmomentum.substack.com/s/mts-course

View on Substack ↗

CAN SLIM is still one of the best frameworks for beginning momentum and growth stock traders.

A lot of traders want to start by creating their own system from scratch, but many of the greatest traders of the last few decades started by studying William O’Neil’s work.

There is a reason How to Make Money in Stocks has stood the test of time.

View on Substack ↗

Trading is one of the easiest hard things.

Like I’ve said before, trading is not rocket science.

The concepts are not that complicated. Cut your losses. Let your winners run. Trade with the trend. Manage risk. Focus on quality setups. Follow your rules.

Simple does not mean easy.

Statistically, most people still cannot do it because trading requires strength in multiple areas at the same time. You cannot just be good at finding stocks. You also have to manage risk. You cannot just build a great system. You also have to manage your emotions well enough to actually follow it.

That is where most traders break down.

They do not fail because the market is impossible to understand. They fail because they cannot stay disciplined long enough for their edge to play out.

And honestly, there are easier ways to make money in this world.

Making money from trading is great, but over time I think many serious traders realize the money is not the only reward. The challenge itself becomes part of the reward.

If trading were easy, I probably would not be as drawn to it.

I think a lot of good traders get into this game for the money, but eventually realize trading becomes something deeper. It forces you to become more disciplined, more patient, more self-aware, and more honest with yourself.

To become a better trader, you usually have to become a stronger person.

That is what makes the game so hard.

And that is also what makes it so rewarding.

View on Substack ↗

Losses Are Tuition, Not Failure

Tom Basso said:

“I realized that every time I had a loss, I needed to learn something from the experience and view the loss as tuition at the College of Trading. As long as you learn something from a loss, it’s not really a loss.”

That is one of the best ways to think about trading.

Losses are part of the business. You are not going to avoid them. The goal is not to never be wrong. The goal is to make sure every loss gives you information.

  • Was the setup poor?

  • Was your position size too large?

  • Did you ignore your stop?

  • Did you buy too extended?

  • Did you trade in the wrong market environment?

  • Did you follow your plan and simply take a normal loss?

If losses are inevitable, at least gain something from them.

A disciplined loss that follows your process is just the cost of doing business. An undisciplined loss is tuition and an opportunity to learn something.

The real danger is not losing money on a trade.

The real danger is paying tuition over and over again and never learning the lesson.

That’s why I track mistakes inside the trade journal tool in the Momentum Trading Strategy Web App. The goal is not just to record trades. The goal is to identify patterns in your own behavior so the same mistake does not keep showing up again and again.

The real issue is not losing money on a trade.

The real issue is paying tuition over and over again and never learning the lesson. Start tracking your mistakes like we do inside the trade journal tool in the Momentum Trading Strategy Web App.

View on Substack ↗

Do You Want to Feel Good, or Do You Want to Get Better?

I’m not here to make you feel good about bad habits.

There are plenty of people who will tell you what you want to hear.

That’s not what I’m here to do.

I’m here if you actually want to learn how to trade growth stocks and trade momentum.

Now, the one thing I will tell you that has some feel-good to it is this:

I genuinely believe you can do this.

If you want it bad enough and you are willing to put in the work, you can do it.

But I am not going to sell you a fantasy and make it sound easy. I am not going to tell you that you are going to get rich overnight.

And honestly, if you ever see someone promising that, you should probably run the other direction, because it is likely nonsense.

But with enough hard work, time, and commitment, you can learn this.

This is not rocket science.

It does not require some rare natural talent.

But it does require work. It requires discipline. It requires studying the right process and being honest with yourself.

So the question is simple:

Do you want to feel good?

Or do you want to actually learn something?

View on Substack ↗

Calling Yourself an Investor Does Not Remove the Risk

A lot of people believe investing is automatically safer than trading.

That is not necessarily true.

What often happens is someone fails at trading, pushes out their timeframe, stops using stops, and starts calling themselves an investor.

Now instead of taking a small loss, they are “holding for the long term.”

Instead of admitting the trade failed, they convince themselves they own a great company.

Instead of following a process, they hide behind a label.

There is nothing wrong with passive investing.

If someone does not want to trade, I completely understand buying broad market ETFs like SPY or QQQ and passively investing into the major indexes over time.

That is very different from buying individual stocks with no rules.

Individual stocks are not the same as owning the market.

  • A single company can break down.

  • A former leader can lose institutional support.

  • A growth story can slow.

  • A stock can go sideways for years.

  • A stock can decline 50%, 70%, or 90% and never come back.

So if you are going to buy individual stocks, even on a longer timeframe, you still need a system.

  • You need to know when you are wrong.

  • You need rules for cutting losses.

  • You need rules for letting winners run.

You need a process for separating normal volatility from real deterioration.

That is why so many “investors” underperform the market.

They are not really investing with a disciplined strategy.

They are just holding stocks and hoping time fixes bad decisions.

When you read Market Wizards, you see traders and investors with different styles, different timeframes, and different methods.

But almost none of them are simply buying individual stocks, holding them for years, ignoring losses, and operating with no exit plan.

  • They have rules.

  • They manage risk.

  • They protect capital.

They understand that being on a longer timeframe does not eliminate the need for discipline.

Calling yourself an investor does not make individual stock risk disappear.

If you do not have a plan to cut losses and let winners run, you do not have a safer strategy.

You just have a slower-moving mistake.

View on Substack ↗

Stop Chasing Stocks. Start Mastering the Real Game.

I’m amazed at how much effort people put into trying to find the next big stock, while ignoring the things that actually determine whether they survive long enough to compound capital:

  • Risk management.

  • Position sizing.

  • Trade management.

  • A disciplined process.

FIX is a great example.

This is not some random name that suddenly showed up on a screen. I’ve talked about FIX for a long time and have been watching it since 2022.

Why?

Because it checks many of the same boxes William O’Neil wrote about when studying the greatest winning stocks in market history.

  • Consistently strong relative strength. 90+

  • Massive quarterly earnings growth.

  • Massive quarterly sales growth.

  • Annual earnings growth of 25% or greater over the last three years.

  • Strong return on equity.

  • Strong margins.

  • Increasing fund ownership quarter after quarter.

At some point, what else are you looking for in a leading stock?

The problem for most traders is not that there are no good stocks.

The problem is usually one of three things:

  • They are looking at and trading the wrong stocks, instead of focusing on the right characteristics.

  • They lack discipline, risk management, and position sizing skills.

  • They have no clue how to manage the trade once they are in.

  • Or they do not have a real system or strategy.

Everyone says they want stocks.

But when strong names show up, many people still do not execute.

And the ones who do execute often do not know how to manage the trade once they are in it.

That is exactly why I decided to put so much work into the Momentum Trading Strategy Course.

Because finding the next big stock is only a small part of success in this game.

Real lasting success comes from knowing what to look for, when to act, how much to risk, and how to manage the position after entry.

Stocks matter.

Process matters more.

View on Substack ↗

I Didn’t Find O’Neil and Minervini Through Blind Faith. I Found Them Through Skepticism.

I remember even 20 years ago, before YouTube, Twitter, Substack, and social media, the trading and investment world was already full of fraudsters.

People were selling the next big stock idea.

The next secret system.

The next “can’t miss” strategy.

And if I’m being honest, some of it caught my eye back then.

But that is also what sent me down the path of studying the legendary traders and going back through market history.

Now, from the outside, it may look like I am some cult-like follower of William O’Neil, Mark Minervini, Jesse Livermore, Nicolas Darvas, Bernard Baruch, Gerald Loeb, and the other great traders.

But it is actually the opposite.

I found them because I did not trust people.

  • I did not trust the hype.

  • I did not trust the gurus.

  • I did not trust 99% of what I saw.

So I went backward.

I studied the legendary traders to look for the similarities, not the differences.

The people who survived multiple market cycles.

The people whose methods kept showing up again and again across different eras.

And eventually, you start to realize something David Ryan quotes from the bible and has said many times:

“There is nothing new under the sun.”

Most of what works in the market has already been discovered, tested, taught, forgotten, repackaged, and rediscovered again.

  • Buy strength.

  • Cut losses.

  • Let winners run.

  • Respect the general market.

  • Price is always right.

  • Manage risk.

  • Use proper position sizing strategies.

  • Avoid the need to be right.

These ideas are not new.

They are old because they work.

So to the newer traders, especially the beginners who feel overwhelmed, do not feel bad if you are still swimming through the garbage.

A lot of us did the same thing.

A lot of the legendary traders did too.

They tested ideas. They made mistakes. They chased the wrong things. They learned the hard way. Then they eventually found the principles that kept showing up across history.

Honestly, I challenge you not to believe me.

Try to prove me wrong.

Go study market history and ALL the books I listed in the Momentum Trading Strategy Course.

Go study O’Neil, Livermore, Darvas, Baruch, Loeb, Wyckoff, Weinstein, Ryan, Minervini, Zweig, and the Market Wizards.

Study the biggest winning stocks.

Study the biggest winning traders.

Study what actually repeats.

And in trying to prove me wrong, you may end up coming to the same conclusion I did:

Most successful traders are not inventing something revolutionary.

They are building on proven principles from the people who came before them. Many just copied a proven system and followed it and there is absolutely NOTHING wrong with that.

That is true for growth stock traders.

It is true for trend followers.

It is true for value investors.

It is true for systematic traders.

Different disciplines. Different tools. Different timeframes.

But the serious people eventually stop chasing magic and start studying what has already worked.

Some of you are lucky if you are discovering this method first.

I am jealous of you.

For the rest of us, it took longer.

We had to swim through the fraudsters, the hype, the hot tips, the secret systems, and the fantasy of easy money before we finally found the way.

But once you find real principles, you stop needing the next shiny thing.

You stop looking for someone to save you.

You start integrating a proven strategy and process.

And that is when trading finally starts to work.

View on Substack ↗

The Mistakes That Quietly Destroy Trading Accounts

William O’Neil’s “21 Costly Common Mistakes Most Investors Make” is one of those sections worth revisiting no matter where you are in your trading journey.

If you are newer, it will probably open your eyes to mistakes you may not even realize you are making yet.

If you are more experienced, it is a great refresher to see where you may be slipping, cutting corners, or slowly drifting away from the rules that protect your account.

Because a lot of underperformance does not come from what you do not know.

It comes from what you keep doing wrong.

  • The loss you refused to cut.

  • The stock you bought because it looked cheap.

  • The winner you sold too early.

  • The loser you gave too much room.

  • The position you averaged down on because you did not want to admit you were wrong.

  • The trade you took from someone else’s conviction instead of your own process.

O’Neil put it simply:

“The reason people either lose money or achieve mediocre results in the stock market is they simply make too many mistakes.”

In my latest article, I break down O’Neil’s 21 costly mistakes.

Read it here:

https://tradingmomentum.substack.com/p/the-21-mistakes-that-quietly-destroy

Because the goal is not just to find better stocks.

The goal is to become a better operator.

View on Substack ↗

Winning Somewhere Else Doesn’t Automatically Make You a Winning Trader

“Yes, the winning traders have usually been winning at whatever field they are in for years.” — Ed Seykota

I agree with this.

BUT I also think it needs context.

People who have already won in other areas often bring traits that matter in trading: grit, resilience, work ethic, discipline, focus, the ability to learn from failure, and the willingness to keep improving after mistakes.

If they bring those same traits into the market, they have a real shot.

But I’ve also seen plenty of highly successful people come into trading and do horribly.

Doctors. Business owners. Executives. People who have built and sold companies.

The problem is not that they were not capable. The problem is that many of them assumed trading would be easy because they had already succeeded somewhere else.

They did not bring the same humility, work ethic, study, repetition, and respect for the craft that made them successful in their original field.

And trading punishes that fast.

In some cases, they were not really here to master trading. They were here for the thrill. The action. The dopamine. The feeling of being right. At that point, trading becomes less like a craft and more like gambling.

That almost always ends the same way.

At the same time, some of the greatest traders were not necessarily viewed as major winners before they found the market.

Mark Minervini has talked openly about being a high school dropout and struggling for years before he became successful. What changed was not some magic indicator. It was obsession with the craft, a willingness to study winners, admit mistakes, control risk, and keep refining his process.

Kristjan Kullamägi was a college student working as a security guard. Nothing fancy. Nothing spectacular on the surface. But he dedicated himself to learning the game, studied traders like William O’Neil, put in the reps, and eventually became wildly successful.

So I think the real lesson is this:

You do not need to already be a “winner” in some impressive outside field to become a great trader.

But you do need the traits that winners usually have.

  • Discipline.

  • Humility.

  • Resilience.

  • Passion.

  • Focus.

  • Emotional Control and Awareness.

  • Work ethic.

The ability to study, fail, review, adapt, and keep going.

Trading does not care what you did before.

It only cares whether you are willing to approach it like a craft.

View on Substack ↗

The Indicator Rabbit Hole Is Really a Certainty Trap

When I first started trading, I went down the indicator rabbit hole.

I started with price, volume, and a few moving averages.

Then I found one indicator.

Then another.

Then another.

Before long, I had so many indicators on my chart that I could barely see price.

And the funny thing is, after all of that searching, testing, tweaking, and chasing, I eventually ended up right back where I started:

Price.

Volume.

A few moving averages.

In Market Wizards, Larry Hite was asked if there were any technical indicators he found overrated. His answer:

“Overbought/oversold indicators. None of them seem to prove out in testing.”

William O’Neil made a similar point when he said:

“I rarely pay any attention to overbought/oversold indicators.”

Jason Shapiro has said:

“There has never been and will never be a perfect indicator.”

That is the part most traders do not want to accept.

There is no perfect indicator.

There is no magic setting.

There is no tool that removes uncertainty from the market.

Once you truly learn to read supply and demand, you realize most of what matters can be seen through price and volume. Almost every other indicator is just a derivative of those two things.

That does not mean indicators are useless. Some great traders use them. Some have built specific indicators that help them see the market more clearly.

But most of those traders still keep things simple.

They are not stacking ten different indicators on a chart hoping the perfect combination will finally give them certainty.

That is the real issue.

For many traders, the obsession with finding the next great indicator is not really about analysis.

  • It is about fear.

  • Fear of being wrong.

  • Fear of taking a loss.

  • Fear of uncertainty.

  • Fear of entering without some tool giving them permission.

But the market will never give you perfect certainty. You can only build a process, manage risk, cut losses, and let your edge play out over time.

The indicator rabbit hole feels productive, but often it is just a more sophisticated way of avoiding the real work.

  • Learning price.

  • Understanding volume.

  • Reading supply and demand.

  • Building a process.

  • Accepting losses.

  • Managing risk.

  • Executing with discipline.

That is where sustainable disciplined trading is built.

View on Substack ↗

You Don’t Pick the Big Winner. Your Process Finds It.

Here is something many beginners do not understand.

You can have a real strategy.

You can have a proven method.

You can know exactly what you are looking for.

And still, to find the big winner, you may have to take 10 qualified trades.

Six or seven may end up as small losses or break-even trades.

One or two may be average winners.

And then one may turn into something like SNDK or LITE.

That is the part most people miss.

The big winner usually does not announce itself in advance.

At the time of entry, it is just another name that fits the process.

That is why I do not get obsessed with any single stock.

I do not fall in love with the story.

I do not assume this has to be “the one.”

LITE was a big winner for me, but I did not know at the time it was going to be one of the one or two out of ten that really worked.

That is not how this game usually works.

Sometimes you know you have something special early, but most of the time you don’t.

Your job is not to predict with certainty which one will be the monster.

Your job is to follow the process, cut the ones that do not work, and stay with the ones that do.

That is why process beats obsession.

The beginner wants to know which stock is going to be the big winner.

The professional knows the big winner will reveal itself over time.

View on Substack ↗

The Average Trader Wants Tips. Professionals Build Process.

I get a lot of questions asking if I have an alert service, or if I plan on starting one.

Here is my answer to that.

I do share stock names, setups, market observations, and sometimes example entry areas, stop areas, and risk management thoughts.

And yes, I do plan on adding some trade alerts once the rest of the Momentum Trading Strategy Web App / software platform is fully built out.

But I want to be very clear:

Momentum Trading Strategy is NOT being built as a traditional alert service.

Alerts will never be the foundation.

It would be much easier to build a simple alert service where people are given buy and sell signals.

  • Post buys.

  • Post sells.

  • Tell people what I am watching.

  • Tell people when I am getting in.

  • Tell people when I am getting out.

But that is not the path I want to go down.

There is a famous quote from Brian Gelber in Market Wizards.

He was asked:

“What does the average trader do wrong?”

His answer:

“He overtrades and begs for tips.”

That one line explains exactly why most traders do not need another alert service.

  • They need a process.

  • They need structure.

  • They need tools.

  • They need risk management.

  • They need to learn how to think for themselves.

And it was not just Brian Gelber.

Michael Marcus warned about blindly following the advice of other traders, even good ones.

Richard Dennis said you could publish trading rules in the newspaper and most people still would not follow them.

Why?

Because the hard part is not just knowing the rules.

The hard part is having the discipline, confidence, and consistency to follow them when the market gets difficult.

Ed Seykota talked about the value of having support from experienced traders, but he also said he usually ignored advice from other traders, especially anyone acting like they had a “sure thing.”

Bruce Kovner made a similar point when he talked about why it is difficult to make money by simply following someone else.

And Jack Schwager’s broader takeaway from interviewing legendary traders over the years was that traders cannot succeed in the markets by simply copying someone else’s approach. You have to find a method that fits your own personality, risk tolerance, time frame, and decision-making style.

That is the entire point.

This does not mean you cannot learn from great traders.

You absolutely can.

Bruce Kovner learned from Michael Marcus

The Turtle Traders learned from Richard Dennis.

David Ryan learned from William O’Neil.

Many great traders were shaped by mentors, teachers, firms, books, and other serious traders.

I have learned the majority of what I do from studying William O’Neil, Mark Minervini, and other great growth stock investors, momentum trader, and trend followers.

But I am not buying and selling based on a trade alert system from them.

And neither did they.

There is a huge difference between learning from a trader and depending on a trader.

There is a huge difference between sharing ideas and blindly following signals.

There is a huge difference between being part of a serious trading community and sitting around waiting for someone else to tell you when to buy and sell.

That is why I want Momentum Trading Strategy to be built more like a professional trading environment.

At professional firms, traders share ideas.

  • They talk about names.

  • They discuss themes.

  • They study leadership.

  • They review market conditions.

  • They share setups.

They talk about relative strength, earnings, volume, sector rotation, breakouts, failed breakouts, and stocks that are acting well.

Some of my largest trades have come from ideas I missed in my own scanning that another serious trader shared with me.

But I did not blindly follow.

  • I still created my own plan.

  • I still managed my own risk.

  • I still traded my own trade.

That is the difference.

Every trader still has to own the trade and have their own trading plan.

  • Where is the entry?

  • Where is the stop?

  • How much capital is at risk?

  • What is the position size?

  • Where would you add?

  • Where would you trim?

  • What would prove the trade wrong?

  • What would make you exit?

That is the skill most alert services skip.

They give people names, but they do not build traders.

Momentum Trading Strategy is being built differently.

The goal is to create something closer to a professional trading environment.

Structured education.

  • A real course.

  • A relative strength stock screener.

  • Risk management tools.

  • Position sizing tools.

  • A trading journal.

  • Market dashboards.

  • Trade planning.

  • Market context.

And a professional-style community where serious traders can share ideas, study the market, use the tools, follow the process, and become more independent.

I am not completely against alerts.

When alerts are eventually added, they will be used as another educational tool.

  • A way to study real-time examples.

  • A way to recognize quality setups.

  • A way to understand risk/reward.

  • A way to help newer traders learn what a proper setup and trade plan can look like.

Not something to blindly follow.

The foundation will always be education, process, tools, and community.

The goal is to help traders develop the ability to think, plan, manage risk, and make decisions for themselves.

In other words, the goal is to teach traders how to fish, not create dependency by simply handing them fish.

I would rather build something that helps traders become independent than build something that keeps them dependent.

Because the goal is NOT to build a room full of traders begging for tips.

The goal is to build a professional trading environment full of traders who want to become real traders.

View on Substack ↗

The Trading Secret O’Neil Learned From a Book You Can Still Read Today

One of the most important lessons William O’Neil taught was the importance of having sell rules.

What I find fascinating is where he learned some of those lessons.

O’Neil talked about in 1960 picking up Jesse Livermore’s How to Trade in Stocks and learning the importance of having sell rules, averaging up, and pyramiding into winning trades.

He did NOT learn that while attending Harvard Business School.

He learned it from a book that all of us can still read today.

That is one of the biggest lessons I keep coming back to.

When you study the great traders, you are not chasing some secret that is locked away behind Wall Street doors.

You are studying the same ideas they studied.

O’Neil learned from Livermore.

Minervini studied O’Neil, Livermore, and others.

And we can study all of them today.

The knowledge is not hidden.

The hard part is studying them seriously, and then having the discipline to apply what they taught.

That is why I keep pointing back to the great books and the great traders.

Because the lessons are there.

They always have been.

View on Substack ↗

The Traders Who Improve Fastest

This is exactly what I want to see.

A lot of people consume information. Fewer people turn that information into reps.

Henry did the part that matters most: he studied the framework, applied it in the real market, managed risk, and reviewed the process in real time.

That is how trading education turns into experience.

Learn. Execute. Review.

Repeat.

Quoting Momentum Trading StrategyHenry, this is where the real magic happens. A lot of people spend years learning, but never put what they learn into action. Then there are plenty of people who take action right away, but never really put in the time to learn. They just jump in and start trading without a real foundation. What you’re doing is comb…