Summer Reading List: How To Find The Next Apple

It may take a bit of work, but you can find the next Apple.

Looking for the next Apple. Andrew Edelstein/E+/Getty Images

The best traders and investors in the stock market have a secret; they find an investing theme that works well for them, and then they mine it until it is used up.  If oil is working for them, then they will search for all sorts of companies in that space including drillers, refiners, shippers, equipment suppliers, and retail distributors.

This is a great way to approach the markets, but it is also a great way to approach learning about the markets, and today I am going to give you an example.

One of my favorite financial authors is Ivaylo Ivanov, a seasoned trader who runs his own newsletter and is a partner in a hedge fund.  Ivan, as his friends call him, has written two of my favorite trading books, The StockTwits Edge and 5 Secrets to Highly Profitable Swing Trading.

But his new book The Next Apple: How To Own The Best Performing Stocks in Any Given Year is even better that his first two.  

And let's be clear, this is no "get-rich-quick" book, selling snake oil about the stock market.  Instead it is a very clearly written, step-by-step guide on how to use well-known methods of analysis to discover those stocks that have the potential to move the way Apple has over the last decade.

From the Introduction;

The market is an opportunity machine. Some trends last only several quarters before they fade, while others continue for years and deliver fantastic returns. Sooner or later, though, every trend ends. This is not an opinion. It is a fact. Knowing when to sell is just as important as knowing what and when to buy.   This is not a book about the company Apple or its stock.

This is a book about finding the next Apple or at least hundreds of “mini-Apples.” The next Apple could and should change your life. The good news is that over the next 10 years – in any 10-year period – there will be multiple stocks that will advance a 1000% or more. The principles in this book will improve your odds of finding those stocks and, more importantly, riding them until it makes a difference in your returns.

If your goal is to achieve average market returns, just consistently put money into low-cost indexes and get it over with. If you are going to spend time, effort and money on learning how to invest, make sure it’s worth it. The only reason to actively pick stocks is to achieve returns that will make a real dent in your universe.  

When you are done with this book, you will know everything you need to know in order to find and profit from the next Apple, Starbucks and Tesla of the world. You will be a smarter and more knowledgeable investor.

This is the type of book I only wish was around when I started trading and is a must-add for any serious trader's library.  And don't let the brevity of the book fool you, it is only that way because there is no fluff or filler here, just what you need to know to find the next big mover.