Trader William O'Neil
Trader William O'Neil went down in trading history as one of the most successful investors who developed his own approach to stock selection and published it.
This approach has been repeatedly analyzed by various financial institutions and is recognized as the most effective and efficient method of selecting stocks for investment.
The book he wrote has educated more than one generation of investors, and unlike other writers, William O'Neil in his book focused on the practice and facts of his strategy, rather than on demagoguery.
O'Neil is one of the most successful traders and investors on the planet, but due to his lack of love for fame and reluctance to appear on various television shows dedicated to investing, very few people know his name.
The future investment guru was born during the difficult period of the Great Depression, specifically on March 25, 1933, in Oklahoma City, Oklahoma's largest city. After his parents moved, William O'Neil spent his childhood in Texas.
After receiving his bachelor's degree, William decided to enlist in the US Air Force. His service proved beneficial, so upon his return, he enrolled in Harvard Business School.
William O'Neill's career
After completing his studies, his abilities were noticed by the brokerage firm Hayden, Stone & Co., so he received a position as a stock market broker. In this position, he was responsible for developing sustainable trading strategies for the company, which is what he actually did.
During his research and live trading, William O'Neil noticed that the common rule of buying undervalued stocks was, in practice, only producing losses. Therefore, to develop his own approach, he decided to study the trades of the then-successful Dreyfus Fund and plot the buying moments directly on the chart.
When he did this, he was shocked, as all 100 shares purchased by this fund were acquired when the price was reaching a new high, not at a more favorable price, as all textbooks teach. This analysis became the basis for his future trading strategy; from then on, he only bought rising stocks that were exiting consolidation ranges.
William O'Neil's shift in outlook on stock selection had a profoundly positive impact, something he demonstrated in practice. Between 1962 and 1963, he created a pyramid of orders for three stocks, reinvesting all his profits.
As a result, he increased his deposit from $5,000 to $200,000 in just a year. Having earned a substantial sum of money, O'Neil quit his job and began his own independent career.
Starting your own business
The money he earned in just a year became an excellent stepping stone to launch his own business, so William bought a seat on the stock exchange and founded his own investment brokerage firm, William O'Neil & Co. The company quickly began to attract clients and investors, as it was one of the first to provide computerized financial market information.
However, trader William O'Neil saw himself not only as a successful investor but also as a businessman. Since his company constantly collected quotes and conducted various analyses of various data, William founded the daily newspaper "Investor's Daily" in 1983.
The most interesting thing is that the publishing house he created had to compete with such a major information giant as the Wall Street Journal, so the costs were simply immeasurable compared to the potential profit.
In 1988, he collected all his thoughts and developments and published his own book, "How to Make Money in Stocks." This book became the bestseller of the year among books on investment topics. It was the publication of this book that brought O'Neill worldwide fame.
Today, the firm William founded serves the largest public and private foundations, numbering over 500.
