Page 925 - How to Make Money in Stocks Trilogy

174 HOW TO MAKE MONEY IN STOCKS SUCCESS STORIES

Training with the Master and Learning to Live in the Moment
Mike kept plugging away and had more meetings with Bill regarding his
trades. Bill saw improvements in how Mike was handling stocks and that he
had listened to his feedback. In late December 1999, after reviewing several
of Mike’s trades that were well executed using the CAN SLIM Investing
System, Bill offered Mike a job as a portfolio manager, making Mike’s dream
come true. The following year, Mike was lucky enough to start working in
Bill’s office, where he stayed for a few years. He says, “That was such a spe-
cial learning experience and very motivational. No one works harder and is
more positive than Bill. He is a great role model and mentor.”
After working with Bill for awhile, Mike realized that Bill lives in the
moment as a trader: “One week Bill could dislike a stock and then a couple
of weeks later turn around and start buying it. That flexibility has kept him
in phase with the market for over 50 years. He doesn’t care what he said in
the past. When the facts change, he changes with them.” He recalls a lesson
Bill taught him when reviewing a mistake that he had made. Mike round-
tripped (letting a gain fall back to the purchase price) a big position, letting
a large gain evaporate. Bill said, “You always need to be flexible, bending
like a tree in the wind. Don’t freeze up. If a stock starts acting poorly, start
selling at least some of it, then reassess and sell more if warranted.”
“Bill isn’t afraid to make mistakes and doesn’t really care what anybody
thinks. He doesn’t have an ego but has more confidence than anyone I’ve
ever met. If Bill makes a mistake, he’ll correct it quickly, but if the stock
turns and sets back up, Bill will go back in and buy the stock back, only with
slightly more money than the first time around, putting him in the offensive
position.”
“Bill has the ability to truly capitalize on the market leader. Once he has a
profit cushion with a stock, he will sit with it and add at logical points as the
stock rises in price. He spreads his purchases over several weeks and months.
This great stock-picking skill and patience completely separates him from all
other traders.”

Always Be Looking for New Ideas
Another thing Mike learned from working with Bill is to always be looking
for new ideas. Bill looks at hundreds of charts over the weekend, and so
does Mike.
Mike says, “Studying hundreds of charts on a regular basis gives you an
edge. You start to notice that stocks have different characteristics, just like peo-