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Exploring the Essential Features of “Mark Minervini – Trade Like a Stock Market Wizard”
Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market
by Mark Minervini (Author)
THE INVESTOR’S GUIDE TO SUPERPERFORMANCE! Dramatically increase your stock market returns with the legendary SEPA system!
For the first time ever, U.S. Investing Champion Mark Minervini reveals the proven, time-tested trading system he used to achieve triple-digit returns for five consecutive years, averaging 220% per year for a 33,500% compounded total return.
In Trade Like a Stock Market Wizard, Minervini unveils his trademarked stock market method SEPA, which provides outsized returns in virtually every market by combining careful risk management, self-analysis, and perseverance. He explains in detail how to select precise entry points and preserve capital―for consistent triple- digit returns.
Whether you’re just getting started in the stock market or you’re a seasoned pro, Minervini will show how you how to achieve SUPERPERFORMANCE! You’ll gain valuable knowledge as he shares lessons, trading truths, and specific tactics–all derived from his 30-year career as one of America’s most successful stock traders.
Trade Like a Stock Market Wizard teaches you:
- How to find the best stocks before they make big price gains
- How to avoid costly mistakes made by most investors
- How to manage losses and protect profits
- How to avoid high-risk situations
- Precisely when to buy and when to sell
- How to buy an IPO
- Why traditional valuation doesn’t work for fast-growing Superperformers
- Examples of Minervini’s personal trades with his comments
With more than 160 chart examples and numerous case studies proving the remarkable effectiveness of Minervini’s methodology, Trade Like a Stock Market Wizard puts in your hands one of the most effective and–until now–secretive stock investing systems in the world.
MARK MINERVINI has a trademarked stock market method that produces outsized returns in virtually every market. It’s called Specific Entry Point Analysis–SEPA–and it has been proven effective for selecting precise entry points, preserving capital and profi ts with even more precise exit points–and consistently producing triple-digit returns.
Now, in Trade Like a Stock Market Wizard, Minervini shares–for the fi rst time ever–his coveted methodology with investors like you!
Editorial Reviews
From the Publisher
MARK MINERVINI, one of America’s most successful stock traders, has been a veteran of Wall Street for nearly 30 years. He founded Minervini Private Access, an online members-only platform that provides real-time access to his SEPA stock trades. He also conducts a live Master Trader Program where attendees experience hands-on education about his methodology.
About the Author
MARK MINERVINI, one of America’s most successful stock traders, has been a veteran of Wall Street for nearly 30 years. He founded Minervini Private Access, an online members-only platform that provides real-time access to his SEPA stock trades. He also conducts a live Master Trader Program where attendees experience hands-on education about his methodology.
TRADE LIKE A STOCK MARKET WIZARD
HOW TO ACHIEVE SUPERPERFORMANCE IN STOCKS IN ANY MARKET
By MARK MINERVINI
CHAPTER 1
AN INTRODUCTION WORTH READING
Champions aren’t made in the gyms. Champions are made from something deep insidethem—a desire, a dream, a vision.
—Muhammad Ali, three-time worldheavyweight boxing champion
In the heat of competition, champions rise to their strengths, triumphing overmere contenders. Marathon runners win through superior endurance and a keensense of pacing. The great flying aces of World War I defeated their enemies,winning dogfights by thinking faster and better in three-dimensional space. Atthe chessboard, victory goes to the player who sees more clearly through themaze of possible moves to unlock the winning combination. Virtually every humancontest is dominated by the few who possess the unique traits and skillsrequired in their fields. The stock market is no different.
Investing styles may differ among successful market players, but withoutexception, winning stock traders share certain key traits required for success.Fall short in those qualities and you will surely part ways with your money. Thegood news is that you don’t have to be born with them. Along with learningeffective trading tactics, you can develop the mindset and emotional disciplineneeded to win big in the stock market. Two things are required: a desire tosucceed and a winning strategy. In Trade Like a Stock Market Wizard: How toAchieve Superperformance in Stocks in Any Market, I will show you how my winningstrategy brought me success and how it can do the same thing for you.
I’ve been trading and investing in the stock market for most of my adult life:30 years and counting as of the writing of this book. Stock trading is how Imade my living and ultimately my fortune. Starting with only a few thousanddollars, I was able to parlay my winnings to become a multimillionaire by age34. Even if I had not become rich from trading stocks, I would still be doing ittoday. For me, trading isn’t a sport or just a way to make money; trading is mylife.
I didn’t start out successful. In the beginning, I made the same mistakes everynew investor makes. However, through years of study and practice, I graduallyacquired the necessary know-how to achieve the type of performance you generallyonly read about. I’m talking about superperformance. There’s a big differencebetween making a decent return in the stock market and achievingsuperperformance, and that difference can be life-changing. Whether you’re anaccountant, a schoolteacher, a doctor, a lawyer, a plumber, or even broke andunemployed as I was when I started, believe me you can attain superperformance.
Success requires opportunity. The stock market provides incredible opportunityon a daily basis. New companies are constantly emerging as market leaders inevery field from high-tech medical equipment to retail stores and restaurantsright in your own neighborhood. To spot them and take advantage of their successyou must have the know-how and the discipline to apply the proper investmenttechniques. In the following pages, I’m going to tell you how to develop theexpertise to find your next superperformer.
Follow Your Dreams and Believe in Yourself
Impossible is just a big word thrown around by small men who find it easier tolive in the world they’ve been given than to explore the power they have tochange it.
—Laila Ali
Dedication and a desire to succeed are definitely requirements to achievesuperperformance in stocks. What is not required is conventional wisdom or acollege education. My real-world education began when I was an adolescent. Idropped out of school in the eighth grade at age 15, which means that I amalmost completely self-educated. Yes, you read that correctly. I left school atage 15. I have never seen the inside of a high school as a student, let aloneattended a university. What I did have, however, was a thirst for knowledge anda burning desire to succeed, to be the best trader I could be. I became afanatical student of the stock market, its history, and human behavior. Istarted out by reading the financial news and stock reports at the locallibrary. Over the years, I’ve read an incredible number of investment books,including more than 1,000 titles in my personal library alone.
In light of my lack of starting resources and formal education, the level ofsuccess I have achieved strikes some people as unlikely or even impossible.Along the way, some have even tried to discourage me. You too probably will facepeople who will try to dissuade you from trying. You will hear things such as”It’s a rigged game,” “You’re gambling,” and “Stocks are too risky.” Don’t letanyone convince you that you can’t do it. Those who think it’s not possible toachieve superperformance in stocks say so only because they never achieved itthemselves, and so it’s hard for them to imagine. Ignore any discouragement youmay encounter and pay attention instead to the empowering principles I am aboutto share with you. If you spend time studying and applying them, you too canrealize results that will amaze even the most ambitious positive thinkers. Thenthe same people who said it couldn’t be done will ask you the question theyalways ask me, “How did you do it?”
And the Trade Shall Set You Free
From the very beginning, I saw the stock market as the ultimate opportunity forfinancial reward. Trading also appealed to me because I liked the idea of havingthe freedom to work at home and taking responsibility for my own success. In myyoung adult years, I had tried several different business ventures, and eventhough I felt enthusiastic, that burning passion was still missing. Finally, Icame to realize that what I was most passionate about was freedom—freedomto do what I want, when I want, where I want.
One day it dawned on me: life is rich even if you’re not. I realized that thingswere happening every day, good and bad, and that it was just a matter ofdeciding what I wanted to be part of. People were getting rich in the stockmarket. I said to myself, Why not be part of that? I figured that if I learnedhow to invest in the market and trade successfully, I could achieve my dream offinancial freedom and, more important, personal freedom. Besides, who was goingto hire a junior high school dropout? The stock market was the one place I couldsee that had unlimited potential without prejudice. The author and successfulbusinessman Harvey Mackay said it perfectly, “Optimists are right. So arepessimists. It’s up to you to choose which you will be.”
Achieving the Best of Both Worlds
When I started trading in the early 1980s, I had only a few thousand dollars toinvest. I had to make huge returns on my relatively small account to survive andstill have some trading capital left. This forced me to hone my timing and learnthe necessary tactics for extracting consistent profits out of the stock marketday in and day out. Like a pro poker player who grinds out a steady living whileconsistently building a bankroll, I became a stock market “rounder.”
My philosophy and approach to trading is to be a conservative aggressiveopportunist. Although this may seem like a contradiction in terms, it is not. Itsimply means that my style is to be aggressive in my pursuit of potential rewardand at the same time be extremely risk-conscious. Although I may invest or tradeaggressively, my primary thought process begins with “How much can I lose?” notjust “How much can I gain?”
During my 30 years as a stock trader, I’ve discovered that a “risk-first”approach is what works best for me. It has allowed me not just to perform orperform well but to achieve superperformance, averaging 220 percent per yearfrom 1994 to 2000 (a 33,500 percent compounded total return), including a U.S.Investing Championship title in 1997. My approach also proved invaluable when Ineeded it the most: cashing me out ahead of eight bear markets, including two ofthe worst declines in U.S. stock market history. By adhering to a disciplinedstrategy, I was able to accomplish the most important goal of all: to protect mytrading account and keep the profits I made during the previous bull markets.
Invest in Yourself First
When I began trading in the early 1980s, I endured a six-year period when Ididn’t make any money in stocks. In fact, I had a net loss. It wasn’t until 1989that I began to achieve meaningful success. What kept me going? Unconditionalpersistence. When you make an unshakable commitment to a way of life, you putyourself way ahead of most others in the race for success. Why? Because mostpeople have a natural tendency to overestimate what they can achieve in theshort run and underestimate what they can accomplish over the long haul. Theythink they’ve made a commitment, but when they run into difficulty, they losesteam or quit.
Most people get interested in trading but few make a real commitment. Thedifference between interest and commitment is the will not to give up. When youtruly commit to something, you have no alternative but success. Gettinginterested will get you started, but commitment gets you to the finish line. Thefirst and best investment you can make is an investment in yourself, acommitment to do what it takes and to persist. Persistence is more importantthan knowledge. You must persevere if you wish to succeed in anything. Knowledgeand skill can be acquired through study and practice, but nothing great comes tothose who quit.
When Opportunity Meets Prepardness
When people hear my success story, the two questions they ask most often are,How did you do it? and Did you just get lucky? The assumption is that I musthave taken a lot of big risks or been lucky along the way.
So how did I do it?
For years I worked on perfecting my trading skills, plugging away 70 to 80 hoursa week, often staying up to pore over stock charts and company financials untilthe sun came up the next day. Even though the results weren’t there yet, Ipersevered. I spent years separating the proverbial wheat from the chaff,perfecting my process by analyzing my successes and, more important, myfailures. I invested countless hours in learning how great investors approachedthe market and how they created and executed trading strategies and developedthe emotional discipline required to follow their models.
Then something wonderful happened. My preparation intersected with opportunity.I had been honing my skills for years, and by 1990 I was fully equipped to takeadvantage of a new emerging bull market. With all the lessons I had learned frommy trial-and-error days in the 1980s, the pitch was now coming across the plate,and I was staring at my chance to knock the ball out of the park. I was 100percent prepared, like an Olympic athlete who has practiced and practiced and isnow ready to perform with perfection.
Opportunities in the stock market can spring to life on short notice. To takeadvantage of them you must be prepared and ready to act. Right now, somewhereout in the world someone is tirelessly preparing for success. If you fail toprepare, that somebody probably will make big money while you only dream aboutwhat you could have been and should have done. So prepare, prepare, prepare,because when opportunity knocks, which it definitely will, you want to be thereto answer the door.
Seize Permanent Knowledge
In the following pages, I will share with you a plethora of information as wellas specific tactics to help you succeed in stock trading, but there is nosubstitute for real-life experience. Just as you cannot learn to ride a bicyclefrom a book, the only way you can accumulate experience is by taking action andproducing results and then learning from those results, good and bad.Unfortunately, experience cannot be force-fed; it must be acquired personallyover time. However, as you go through trials and tribulations during yourlearning curve, keep in mind that once acquired, the skill of proficient stocktrading can never be taken from you. No one can fire you from your craft the waya boss can from a job; it’s just you and the market. All you have learned andthe experience you have gained can bear fruit for many years to come. Truly,this is what makes acquired knowledge and firsthand experience the greatest toolto succeed and build upon in stock trading and in life.
Put Passion at the Wheel
The best traders wake up every day excited about trading and speculation. Theycan’t wait to get to work each day and find their next superperformer. They arechallenged by the markets and feel the same passion and excitement that drivesathletes to greatness. Michael Jordan became the greatest basketball player inhistory because he had passion for the game, not because he was motivated bycommercial endorsements. So it is with great traders. They are motivated notjust by money but above all by their passion to become the best they can be.
Passion is not something you can learn; it comes from within you. Passiontranscends monetary reward. Don’t worry; if you are doing something you trulyenjoy and you are great at it—whether you’re the best writer, lawyer,archaeologist, or basketball player or the world’s foremost authority on dungbeetles—the money will come your way. For me, the greatest success camewhen I finally decided to forget about the money and concentrate on being thebest trader I could be. Then the money followed.
Those of you who enjoy investing and the art of speculation can learn thetechniques and disciplines needed to succeed in the stock market. Concentrate onbeing the best you can be, and the money will follow. The main thing is to letyour passion drive you.
The Best Time to Begin
You don’t have to be great to get started, but you have to get started to begreat.
—Les Brown
Every day we have the opportunity to make choices and shape our future; everyday is the first day of the rest of our lives. At some point, those days aregone. You can choose to learn from or regret your failures and also rejoice inyour triumphs; however, the sooner you begin pursuing your dreams, the sooneryou can achieve them. If you truly want success trading stocks, take actionright away. You don’t need anyone’s permission or any reason other than you’vedecided to stop wasting valuable time that you will never get back. It allbegins with beginning! You can dream, you can think positively, you can plan andset goals, but unless you take action, nothing will materialize. In his bookPossibility Thinking, Robert Schuller said, “It’s better to do somethingimperfectly than to do nothing flawlessly.” An ounce of action is worth poundsof theory. In the stock market, you can make excuses or you can make money, butyou can’t do both.
It’s not enough to have knowledge, a dream, or passion; it’s what you do withwhat you know that counts. Even if you don’t become wealthy, by doing whatyou’re passionate about, you will at least be happy. The best chance you have tosucceed in life is to do what you enjoy and give it everything you’ve got. Whenyou get up each morning and do what you love, you never work a day in your life.Those days can begin today. The best time to begin is right now!
A Time to Share
If you cannot—in the long run—tell everyone what you have beendoing, your doing has been worthless.
—Erwin Schrödinger
You may wonder why I chose to write this book now. More than a decade ago, I wasapproached by several major publishers, but I decided not to proceed. Yes,authoring a book gives one credibility and prestige and maybe even boosts one’sego. Although the offers were tempting, I hesitated. I thought to myself, Whyshould I give away all my hard work for a relatively small sum of money,especially since most people probably won’t apply it correctly? Admittedly, Iwas being a bit cynical. Then I realized that if even one individual put forththe effort that I did in my earlier years, perhaps my book could help thatperson achieve his or her dreams. Perhaps my work could make a real differencefor someone else; perhaps that someone is you.
Since my early twenties, I have been inspired by the words of Dr. Wayne Dyer,the internationally known motivational speaker and author. Not long ago, Ireread his book 10 Secrets for Success and Inner Peace, in which there is achapter titled “Don’t Let the Music Die Inside You.” That chapter really strucka chord with me. My father died relatively young, in his fifties. Later, mymother became sick and recently passed after a long battle with an illness. Thisprompted me to think about my life. Over the years I have accumulated a treasurechest of knowledge and expertise. I came to the realization that it would be awaste to let it all just fade away. Books written by great traders provided mewith a foundation to build on—a passing of the torch, one might say.Similarly, I would like others to benefit from and further advance my work.
The stock market provides the greatest opportunity on earth for financialreward. It also teaches great lessons to those who win and those who lose, aneducation that goes well beyond trading and investing. Without a doubt, thestock market gives you incredible exhilaration when you win and deep humilitywhen you lose. It is the greatest game on earth, and for me it has proved to bethe greatest business opportunity on earth.
(Continues…)
Product details
Publisher ‏ : ‎ McGraw Hill; 1st edition (April 11, 2013)
Language ‏ : ‎ English
About the author
Mark Minervini
Mark Minervini is the author of the best-selling books Trade Like a Stock Market Wizard and Think and Trade Like a Champion (both on BookAuthority’s “Best Stock Market Books of All Time” list) – He is featured in Momentum Masters – A Roundtable Interview with Super Traders and in Jack Schwager’s Stock Market Wizards: Interviews with America’s Top Stock Traders. Schwager wrote: “Minervini’s performance has been nothing short of astounding. Most traders and money managers would be delighted to have Minervini’s worst year—a 128 percent gain—as their best.”
Starting with only a few thousand dollars, Mark turned his personal trading account into millions, averaging 220% per year for more than five consecutive years with only one losing quarter; an incredible 33,500% total return. To put that in perspective, a $100,000 account would explode to more than $30 million in just 5 years.
To demonstrate the capabilities of his SEPA® trading methodology, in 1997, Mark put up $250,000 of his own money and entered the U.S. Investing Championship. Trading against highly leveraged futures and options traders, Mark traded a long-only stock portfolio to win the real-money investment derby with a 155% annual return, a performance that was nearly double the nearest competing money manager.
Mark educates traders about his SEPA® methodology through Minervini Private Access, an online platform that allows users the unique experience of trading side-by-side with him in real-time. He also conducts a live Master Trader Program workshop where he teaches his system in a comprehensive weekend event.
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