Liquid Millionaire - isaco

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Liquid Millionaire
• If you can aff ord it, subscribe to O’Neil’s equity research
package (this is the one I subscribe to) which costs $1000 per
year. 104 Th e package you opt for needs to include both Daily
Graphs and Daily Graphs Industry Groups. After subscribing,
learn how to use the package to fi nd stocks and discover where
the big money is fl owing, especially when the market is heating
up.
• Start to read O’Neil’s daily column; Th e Big Picture every
day. You will fi nd it on www.investors.com (you have to be a
subscriber to get access to it).
• Have a look at all the other things O’Neil has on his site to
continually immerse yourself in the CAN SLIM system.
• When you believe the market is healthy, look for potential stocks
to buy.
• Paper trade one stock that you get really excited about. DO
NOT use real money at this stage. Th is is where you need to
prove to yourself that you can do it. As mentioned in Chapter 1,
paper trading is simulated trading that investors use to practice
mimicking trades (buys and sells) without actually entering into
any monetary transactions. Paper trading is a good way to learn
the ropes without risking any money. You can do it simply by
pretending to buy and sell stock and keep notes of paper profi ts
or losses.
• I suggest you successfully paper trade a total of 5-10 stocks before
using real money.
• Analyse each trade. What did you do right? Why did you get it
right? Where did you go wrong? Why? Keep a journal of your
trades, thought processes and decisions.
• When you start real money trading, use a maximum of £100
per trade. Do this even if you feel you can aff ord to trade much