Every year, there are stocks that will have epic runs and return 500-1000% or more within a few short months. This book explores how to find these Superstocks and how trade them. I've been trading for over 14 years. During that period, I have probably read over 100 books on investing/ trading and very few of them are worth a damn. This book is not is the usual B.S. trading books that show some swing trading setup based on cherry picked charts. This one was different. This is Jesse's story about his actual trades. Jesse did it. This is his book, his story, and our opportunity to share in it. Superstocks is hands on as it takes you through his trades. Showing the entries, exits.
If you want the entertaining story about how he did it its in there as is the psychology. If you want the hands on detail thats there for the taking as well. This style fits my philosophy in that it is part momentum, part fundamentals, and part trend following. These stocks are set in motion by a major event. Usually earnings. (Stockbee a site, which I subscribe calls these type of events, episodic pivots or "EPs") Jesse demonstrates how to get into these stocks, what to look for in the 8ks, the charts and how to get out before they collapse... they always do.
There is also healthy dose of trading psychology and contrarian advice... turn off the noise, look at weekly charts because everyone looks at daily charts, don't use indicators because everyone uses them. Think differently, get different results.
The only area where I felt Superstocks does not go far enough is in risk control. There is not enough much discussion in the way of stops or position sizing. This would have been helpful. However, I get the feeling that Jesse's own trading during his 14,972% run would have violated many traditional notions of risk management due to the leverage he put on his trades. Indeed, he does not hide the fact that he had some massive drawdowns.
I love that this book was self-published because it contained many more examples than most publishers would have allowed. In an area where there are so many phonies, it is refreshing to see someone who is genuine as a trader. After reading Superstocks, I immediately read it again. I'm now on my 3rd round.
It has been some time since we spoke on Muathe and Stockbee, both of whom I use their methods and tools. I am fortunate to work with Stine, and although, it isnt explained, the method is forensic earnings reports, undervalued stocks and extended from MA's,....take profits. Large share size, lowriskentries, are the key.
ReplyDelete