Recommendation
Something I want to say before reading this book
Prologue: Can I Succeed in Stock Investment?

Chapter 1.
Common Steps for Beginners in Stock Market

· What is financial technology?
· [Wait!] What if this is your first time investing in stocks?
· My first stock and my strategy stock
From Paxnet to William O'Neill
[Wait a minute!] What investment gurus taught me
· Misconceptions about blue chip stocks
· Back to the stock market, just in time for the planting season!
[Wait a minute!] Stock Study
· Fascinated by value investing
[Wait a minute!] Corporate Study

Chapter 2.
There is no perfect stock investment strategy.

· Facing a new world
[Wait a minute!] Company visit and call with stock representative
[Wait a minute!] Quarterly earnings momentum play
· The emergence of the smartphone paradigm
[Wait a minute!] Small-cap investing
[Wait a minute!] Focused investment
· Finally achieve financial freedom!
[Wait a minute!] How should I invest?
From value investing to system trading
[Wait a minute!] Basket trading
[Wait a minute!] Leverage is a poisoned chalice.
· From system trading to trend-following trading
[Wait a minute!] Trend-following trading
· What trading method is right for me?
[Wait a minute!] System Trading

Chapter 3.
Invest (value investing)

· Value investing = long-term investment?
Investment period: 3 to 6 months (quarterly investment) / Investment period: 1 to 2 years (annual investment) / Investment period: 10 years or more (insight investment)
Good stocks and bad stocks
The market is always irrational / How much have you earned so far? / An ideal company with a large gap between its fair value and its price
· How should fair value be determined?
There is no absolute standard for valuation / A method for calculating fair value at a level that is sympathetic
· Which stocks should I buy?
The myth of low PBR stocks / Stocks we should pay attention to / Secrets to doing business well / How to increase profit margins / Which of Q, P, and C should be prioritized?
· Undervalued Value Stocks vs.
Narrative items
· Indicators I see
[Wait!] Checkpoint
· How I buy
[Wait a minute!] TWAP and VWAP
· How I sell
Stock prices become less elastic over time / when structural growth leads to declines
· My profit maximization strategy
· Mental insurance, hedge
· Investment cases utilizing the latter half of the film
Direction and future trends / Why you need to understand quarterly performance / What to check in business reports / How to estimate undervaluation based on quarterly performance / Criteria for split purchases / The market determines fair value / Consider portfolio rebalancing / Weight adjustment is key
[Wait a minute!] The reason for PEAD
· Finding investment ideas in everyday life
· Investment using orders and backlog
· Investment using facility investment schedule
· Insider purchases, donations, and share reporting, etc.
· Buy at high PER, sell at low PER
· Don't expect to pick a winning stock from the start.
[Wait a minute!] How to Understand a Company's Business Model
[Wait a minute!] What should I focus on in a business report?

Chapter 4.
Trend-following trading

· What's more important than knowing when to buy and when to sell
Why I Chose Trend-Following Breakout Trading / Win Rate, P&L, Risk Management / Why Most People Don't Make Money
· How much is the ideal amount to bet on a single sport?
The philosophy of risk management and the core of investment principles / Compound investment using the Multiple R / R betting method
· How to minimize losses
Gradual Investment / Gradual Investment vs.
equal investment
· How can I tell if it is a bull market or a bear market?
Above or Below the Moving Average? / Tom Basso's Market Judgment Method
· What we should be more concerned about is not the winning percentage, but the profit/loss ratio.
Win Rate and P&L / What Makes a Good Trade? / Develop Your Own P&L Standard / Review Your Trading History / Investment Methodology Is Just a Tool
· Which stocks should I buy?
Top-tier stocks / Stocks stronger than the index / Stocks suitable for institutional entry / Movements across sectors / Why you should look at weekly charts / Stage 1: First rising phase / The lower the volatility, the better / Stage 2: Correction phase / What matters is the 'selling area', not the upper tail or the body / Stage 3: New rising phase
[Wait a minute!] Cup pattern with handle
· When will you buy it?
· When will you sell?
Losses are short, gains are long / How can we tell when a trend has broken? / The climax is inevitable
· Profit Maximization Strategy: Burning
How should I weight it? / When should I weight it?
· Profit preservation strategy: Trailing stop
· Other checkpoints
· Items actually traded

Chapter 5.
Techno Fundamentalist Kangto's Investment Method

· What's better than combining value investing and trend following?
Why Trend Following is Good for Trading / Why 'Profits Are Short, Losses Are Big' / The Benefits of Being a Techno Fundamentalist
· Which investments should I focus more on?
· How to trade which stocks?
What to do in Stage 1 / What to do in Stage 2 / How to trade with a pressed neck in Stage 2
· Types to watch out for
· When will you sell?
· Even office workers can engage in trend-following hybrid trading!
· The US market isn't always the answer.
· Epilogue
Everything happens for a reason / Trading techniques also have causes and reasons / Common misconceptions about the stock market / Value investors also need new weapons / A more attractive option for value investors / Why trend following?

Epilogue Investing is a process of finding clothes that fit your body.

[Appendix 01] A Day in the Life of a Professional Investor
Life as a Regular Trader / Life as a Value Investor / Life as a Trend-Following Hybrid Professional Investor
[Appendix 02] Recommended Books
Recommended books on value investing / Recommended books on trend following / Recommended books on general trading / Books featuring interviews with various investors
[Appendix 03] Websites frequently referenced by professional investors and Twitter addresses of leading investors

A trading method that consistently generates profits
It's the right answer and your own trading method.

Unlike in the past, there are now many ways to study, not only through books but also through YouTube and other means.
Accordingly, the era in which only value investors like Warren Buffett and Peter Lynch received attention has changed to an era in which traders like William O'Neil and Mark Minervini are also receiving attention, and their investment methods have become easily studyable through various books.
Yet, the majority of investors still aren't making money.
Why? Is it simply because of the unreliable nature of the Korean stock market?

The author of this book also experienced repeated success and failure.
The author has generally lost money through trading and profited through value investing. So, is value investing the only answer? The author admits that value investing was a natural fit for him, but argues that it may not be the right fit for everyone.
Even if you open the book, you will know that the author is a 'techno-fundamentalist' who also follows trends.
This can be defined as 'an investor who organizes a group of stocks of interest through fundamental analysis and then buys them when the stocks of interest break out in terms of trend-following trading.'
Of course, this method may be suitable for some people, but it may not be suitable for others.


The reason most investors fail to make money is because they blindly follow the investment method without verifying whether it is right for them.
This is exactly the part we need to improve.
Follow the author's method, but check if it is right for you.
How do I know what's right for me? It's the returns that determine it.
A trading method that consistently generates profits is your own trading method.

How can you consistently make a profit with a win rate of only 30%?
There is a right answer to investing.

The author repeatedly says in the book that there are no right answers, but that is not the case.
This is because risk management, which is periodically emphasized in the book, can be said to be the correct answer.
Even if you find a trading method that suits you, it is difficult to consistently make profits.
Because no rules representing risk management have been formed.

Most people focus on where and when to buy, but what's actually more important is selling.
When people talk about selling, most people only think about taking profits by selling when the price rises, but the market is generally not friendly to investors.
In other words, it means that there are more cases where the market drinks water.
The author believes that the odds of winning against the market are only 30%.
Let me ask you a question here.

Let's take a coin toss as an example.
Assuming that you succeed if you get heads, flip the coin 10 times.
However, if you succeed, it is +6%, and if you fail, it is -2%.
I rolled 10 times and got heads 3 times and tails 7 times.
Did it fail or succeed? This time, let's assume that if it succeeds, the odds are +2%, and if it fails, the odds are -2%.
I rolled 10 times and got heads 3 times and tails 7 times.
Did it fail or succeed?

This question essentially asks, "How can you consistently make a profit with a win rate of only 30%?"
The author says that the profit and loss ratio is the answer to this.
The author suggests a profit/loss ratio of 1:3, with a cut loss of -8% and a take profit rule of +24%.
Even this is not done at +24% all at once, but is divided into 3 parts.


This is also the author's rule, but like a trading method, it is important to learn the profit/loss ratio, winning rate, and risk management method that suits each person's tendency.
However, since most beginner investors will not have these rules, it is recommended to start by following the author's rules.
In other words, this book will serve as a mentor to countless investors.

Why value investing + trend following?

Value investors basically have a company analysis of many stocks.
This can provide psychological stability when a stock of interest hits a new high.
Because validity can be considered based on performance.
However, the average value investor is likely to have bought at a low price using a bottom fisher, and so they often sell all of their shares the moment a new high is recorded.
However, since stock prices tend to soar from the moment they hit a new high, many investors feel FOMO when they see the stock prices soaring.
How about combining trend-following with this strategy? Sell half your positions and hold the other half, following the trend.

Most successful investors in the global market are value investors, but there are also many successful trading investors.
Nicholas Davas, famous for his box theory, Jesse Livermore, a master of technical analysis, Richard Dennis and William Eckhardt, who created turtle trading, Ed Seykota, a master of trend-following system trading, William O'Neil, who developed the CANSLIM strategy, Richard Wyckoff, who created the Wyckoff pattern, Larry Hite, the world's first quantitative-based trend-following hedge fund manager, and James Simons, a representative figure of trend-following quantitative hedge funds.
Additionally, many of the top traders at the National Investment Competition achieved success based on trend-following trading.
Dan Zanger, whose returns earned him a Guinness World Record, David Ryan, who won three consecutive championships, and Mark Minervini, who won two, also used trend-following trading.
Oliver Kell, a disciple of Mark Minervini, also followed the same method.

The CANSLIM strategy by Nicholas Davas, Jesse Livermore, and William O'Neill was the beginning, and Mark Minervini further formalized it into the SEPA strategy.
The author has organized this systematically so that anyone can easily apply and repeat it.

The key to trading is whether you can generate long-term profits by repeatedly applying certain principles while thoroughly managing risk and considering the odds of winning and losing.
I hope this book will help you understand that the essence of sustainable trading lies in a strategy that focuses on long-term performance, not short-term wins and losses, and maximizes profits while minimizing losses.