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.
Introduction:
Mark took years to research the methods that have made him successful. He has dug up gems of investing knowledge from some of the great investment books and research most investors never knew existed. For example, a source he cites is Superperformance Stocks by Richard Love. When you combine that with the experience he gained through many market cycles, you have a book packed with vital advice that will help any investor.
In each chapter, Mark clearly lays out the factors that are important for a successful investment. It is one of those books you have to reread to really grasp all that it contains One of the best sections of the book is Mark’s description of the life cycle of a growth stock.
You get a fundamental and technical picture of where a stock is along the different phases of its move from the start in phase 1, to the acceleration of earnings and price performance in phase 2, to the topping process in phase 3, to the trip back down in price as earnings slow in phase 4. He shows this not only with price charts but with tables of earnings and sales to show what is happening fundamentally as a growth stock moves over time.
In the last two chapters of the book, which you should probably read first, Mark discusses risk management. This is vital because so many investors seem to get into the right stocks but don’t know how to take a profit or when to sell as a position goes against them. He discusses the psychological factors that prevent most investors from cutting a loss. Can you believe that an investor of Mark’s stature is right only 50 percent of the time and has still made a fortune! That is due to his use of risk management.
Contents:
- An Introduction Worth Reading
- What You Need to Know First
- Specific Entry Point Analysis: The SEPA Strategy
- Value Comes at a Price
- Trading with the Trend
- Categories, Industry Groups, and Catalysts
- Fundamentals to Focus On
- Assessing Earnings Quality
- Follow the Leaders
- A Picture Is Worth a Million Dollars
- Don’t Just Buy What You Know
- Risk Management Part 1: The Nature of Risk
- Risk Management Part 2: How to Deal with and Control Risk
Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market By Mark Minervini pdf
