These are the concise notes from Jay Oliveira’s podcast with Richard Moglen (part 1). For the full notes, click here.
1. Discovering CANSLIM
Jay discovered the CANSLIM strategy through Investors Business Daily and William O’Neil’s book, which became the foundation of his trading approach.
2. Financial Literacy Comes First
Living a minimalist lifestyle helps keep expenses low while focusing on trading. Before starting, it’s crucial to pay off debt and plan for retirement by contributing to a retirement account alongside your trading funds.
3. Essential Reading for Traders
How to Make Money in Stocks is Jay’s most recommended book for learning growth stock investing. Re-reading trading books is essential to reinforce concepts and deepen understanding over time.
4. Recommended Trading Books
Jay recommends Reminiscences of a Stock Operator for timeless market lessons, Monster Stocks for insights on high-growth stocks, and Trade Like an O’Neil Disciple for advanced entry strategies.
5. Emotional Readiness is Key
Avoid a gambler’s mindset, as reckless trading can harm both your portfolio and mental health. If you’ve experienced consecutive losses or notice emotional decision-making, take a break to reassess and refocus on risk management.
6. Build Your Own Trading Strategy
Your trading strategy should align with your strengths and risk tolerance while incorporating structured routines for market analysis, idea generation, and weekly planning.
7. MarketSurge Growth 250 – A Valuable Tool
MarketSurge (formerly MarketSmith) is a useful platform for identifying strong fundamental stocks, with technical analysis confirming which stocks deserve to be on a watchlist.
8. Focus on Revenue & Earnings Growth
Stocks with accelerating revenue and earnings have higher potential for success. Jay maintains a focused watchlist, narrowing it down to a few high-quality stocks that show strong growth trends.
9. Understanding Stock Behavior
Every stock has a unique trading personality, so observing and studying a stock before trading helps you make better decisions. If a stock breaks its usual behavior, it may be a sign to exit early and protect profits.
10. Jay’s Three Ways to Buy Stocks
Jay enters trades using three key methods: buying undercut rallies, buying pullbacks, and buying breakouts when market conditions are favorable.
11. Managing Losses & Recovery
Cutting losses quickly is crucial to avoiding major setbacks. Emotional attachment to stocks can lead to repeated losses, but effective risk management helps recover from setbacks and regain profits.
12. Experience & Patience Matter
Trading is like learning a sport—it takes time for strategies to become instinctual. Many traders struggle with patience, but waiting for ideal market conditions prevents impulsive trades and unnecessary losses.
13. Prioritize Stocks Over Market Trends
Individual stocks can perform well even in weak markets, so Jay prioritizes stock strength over overall market trends. However, understanding market conditions provides important context for making informed trading decisions.
14. 2020 Gave New Traders False Confidence
Many traders who started in 2020 experienced quick gains, leading to unrealistic expectations. True success in trading requires discipline, continuous learning, and a strong work ethic.
15. Be Selective About Trading Advice
It’s important to follow traders with proven success and a style that aligns with yours. Limiting external opinions helps maintain focus and avoid distractions from conflicting strategies.
16. Use Social Media Wisely
Most people on social media aren’t credible, so always do your own research. Plan trades in advance instead of reacting to stock tips in real time, and never blindly follow someone else’s trades.
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