Secrets for Profiting in Bull and Bear Markets
If I had to choose just one book Stan Weinstein’s masterpiece is the book to read. Stage Analysis has a number of advantages over other trading systems:
- It can be used in any market: growth stocks, cyclical stocks, commodities, or anything that has a weekly price chart can be traded with the system (this is a huge advantage because systems like CANSLIM focus mostly on growth stocks while ignoring cyclical sectors and commodities)
- It is essentially entirely a technical system which doesn’t require and actually prefers little knowledge of the fundamentals (which greatly simplifies buy/sell decisions)
- It is a simple system that describes how the markets actually work, and describes the conditions that produce the biggest winning trades across any market
Reminiscences of a Stock Operator
Jesse Livermore: World’s Greatest Stock Trader
How To Trade In Stocks
The books covering the life and wisdom of Jesse Livermore are must reads because they are filled with investing principles that are timeless. Jesse Livermore’s trading strategy was very similar to Stage Analysis, he used price action as his primary indicator to determine when a market was moving into a bullish or bearish phase. Every time he deviated from his core strategy of price action he incurred big losses and he went broke multiple times. But when he went back to price action he made a killing including making a fortune during the stock market crash during the Great Depression.
Trade Like A Stock Market Wizard
Momentum Masters
Think And Trade Like A Champion
The Perfect Speculator
Finally Mark Minervini’s books and Brad Koteshar’s book are a good complement to Stan Weinstein’s material (Minervini uses the four stages of Stage Analysis in his books). Like Weinstein the core strategy of their systems uses price action and volume. Minervini uses some fundamentals as well making his system SEPA similar to CANSLIM. All of the books are extremely well written and have tons of investment nuggets of wisdom.
Some good recommendations on the book list and your “beliefs” are quality…Applying some of those more frequently would certainly have helped me over the years.
Appreciate the site. Happy trading.
Brian
Hi,
do you know who Weinstein‘s mentor was?
Robert
I believe Justin Mamis was an influence on him. Stan actually had a fundamental background when he first got into the markets but says in the book once he discovered that wasn’t working well shifted to the technical approach. This same theme I’ve seen with other famous traders like Nicholas Darvas and Jesse Livermore.
Yes, I meant Justin Mamis. But it seems like you knew it already. But I feel like Mamis’ books are not as helpful as Weinstein’s.
One more question: What is the best way to learn about this method beside the book and learning by doing? Is there any course or mentor that you can recommend?
I agree Justin Mamis books were harder to digest than Stan’s book. Is there an aspect of Stage Analysis you need to understand better after reading the book or my website? I’d like to make my website a better place to learn the method so if there’s something you are interested in taking a deeper dive on please let me know. Thanks!
Thank you for your reply. And since you asked what could be improved regarding your website -> Is there a tutorial on how to best use your screener? I didn’t find a detailled tutorial. Some “best practices”, e.g. for “the forest to the tree” method would be great. I am now also starting to use stockcharts.com (until now I was using tradingview), because I feel like stockcharts fits better to “stage analysis”. Maybe you also have some “best practices” on how to use stockcharts for this trading style. And: It would be great to receive alerst when you reply to a question on your website. I didn’t get one and had to check by myself. …. I am also following you on twitter and you already answered some questions there. Thank you!
Hi Justin, the screener is excellent & incredibly useful. However. i am unable to click on the tabs e.g. wathlist , videos etc. Please advise.