Page 865 - How to Make Money in Stocks Trilogy

Black Belt Testing: Life-Changing Moments in Investing 127

Even though 2012 was an easier environment to trade in, having the 20%
threshold rule helped Ed outperform the S&P by nearly double through
September 2012. Ed seeks to “constantly learn through post analysis and
make new rules that will help him as a trader.”
Ed also noted that no matter how good you get at investing, you’re going
to have a bad year at some point, so it’s important to fix mistakes. He said
that he learned a lot more in the difficult 2011 period than in easier up
years. “Don’t be afraid of your mistakes, but make rules to fix them.”
He continues to be a student of the market, studying and learning. Ed also
likes to go to a local mall and see what people are buying. He was able to
make a nice profit from Chipotle Mexican Grill when he noticed one open
near his old law firm and saw lines 45 minutes long for healthy fast food.
Ed says that had he not read How to Make Money in Stocks nine years ago,
he might still be a lawyer, working long hours and being unhappy with his pro-
fession. Instead, now, not only does he have his own hedge fund where others
trust him to manage their money, but when he wakes up in the morning to go
to work, he is excited and passionate about every waking hour he spends ana-
lyzing the market and trading. “My life is much more fulfilling than I could
imagine as I have much more free time to spend with my family and three-
year-old son. Mr. O’Neil, I thank you for making this all possible.”

Google. 25% gain 2005
Vmware. 80% gain 2007
Dryships. 91% gain 2007

Michael Kors. 80% gain 2012
LinkedIn. 100% gain 2012
Priceline. 50% gain 2012
Apple. 28% gain 2012