Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market: How to Achieve Superperformance in Stocks in Any Market Kindle Edition

This book is perfect for someone at my level of investing: I love it, and am actually a professional artist with a physics degree (don't ask), and I've always "dabbled" in stocks ever since my Aunt Lydia showed me how to set up a brokerage account in the 80's. But I always felt guilty about making money from it, due to some Puritan background issues, so that wasn't my goal, until now. I actually need to send my children to college, and that requires more than what I make as an artist, so I have motivation to increase my capital by 1000% (unfortunately, that's how much college education costs). Anyway, the Investors Business Daily, a fantastic newspaper, has helped me enormously, as well as How to Make Money in Stocks. However, I find I fall asleep when I read that book. And I have only made it to 1968 in their stock charts. And then I signed up for MarketSmith, a wonderful graphs and tutorial program associated with the IBD, in January 2020. And I made a trade with AMD, oh, and Adobe, Amazon, Apple, Microsoft, Iphi, Now, that raised my portolio by 40%, which was encouraging. But I still felt clueless. I also really have emotional trouble dropping losers quickly enough. So, when Marketsmith hosted Mark Minervini on their weekly chat, I was drawn to his organized approach to stocks. Also, he was extremely concrete about numbers, about recommendations, about the big picture (which is something I find blurry), and he recommended Walmart, an unexpected one (I didn't buy it though, cannot stand shopping at Walmart). And I then followed him on Twitter, and saw that he's teaching a workshop in November, online. Well, due to the pandemic, I have no weddings to paint in November. Normally I'd be very busy, so I figure I'll spend 5000$ on the class (that is a very small percentage of my gains at this point), and I asked the Marketsmith people what I need to do to prepare. They told me to read Mark's books. I dreaded this, because the How to Make Money in Stocks puts me to sleep (literally), and I used to try to read Warren Buffet's mentor's book about Interpreting Balance Sheets, and I could never quite finish Lefevre's book (which I know is very important to get through). But I bought the books a few days ago on Amazon, they arrived this weekend, and I am already over halfway done with the first one. And it's great. It's written so clearly. It contains many of the same concepts as William O Neil's book, but it's as if William O Neil assumed his readers have all been to Harvard Business School, and Mark writes for people like me: intelligent, curious, yet unfamiliar with net profit margin (net makes me think of fishing). So, I heartily recommend this book. Also, I have made so many mistakes, lost a lot of money along the way, and he covers so many of the errors that I consistently make. And it's very concrete. The Earnings Surprise, for example. I recently experienced that with Fortinet, very sad. And I had noticed it with Adobe last year, and didn't understand it, and it happened with Chegg (got faked out by it). That alone is worth the book. Hopefully I will finish reading it today, then I can start on the next one, and then I'll sign up for his class. I feel extremely lucky to have the opportunity to take a class from such a brilliant person.

Most investment books aren’t worth the paper they’re written on. Authors who have never experienced real investment success espouse the conventional wisdom: index funds, blue chips, buy and hold, etc…Every once in a while, however, there is a true gem: Reminisces Of A Stock Operator, My Story by Bernard Baruch, How To Make Money In Stocks by William O’Neil, No Bull by Michael Steinhardt, Beat The Street and One Up On Wall Street by Peter Lynch, the Stock Market Wizards series by Jack Schwager. It’s no coincidence that all were written by or about investors with extraordinary track records. How can we expect to learn extraordinary performance except from those who have actually achieved it?Add another to the list of investment classics: Trade Like A Stock Market Wizard by Mark Minervini. Minervini is one of the greatest independent traders of our generation. Starting with nothing, he made himself a multimillionaire through trading alone by the time he was 34 years old. In a five and a half year period starting in mid-1994, Minervini achieved a 220% annual compounded return, including winning the US Investment Championship in 1997. This is someone whose track record speaks for itself.More than a decade ago, in an interview with Jack Schwager for one of his Stock Market Wizards books, Minervini summed up his investment philosophy: “My basic philosophy is: Expose your portfolio to the best stocks the market has to offer and cut your losses very quickly when you’re wrong. That one sentence essentially describes my strategy.” Trade Like A Stock Market Wizard is an extended explication of what that actually means.This isn’t a get rich quick book. Minervini begins by explaining that learning how to trade in the stock market requires a lengthy education. In his case, it took 6 years of losing before he put it all together: “When I began trading in the early 1980s, I endured a six-year period when I didn’t make any money in stocks. In fact, I had a net loss” (pg. 5).In Chapter 4, “Value Comes At A Price”, Minervini contradicts the conventional wisdom about buying stocks with a low P/E. According to him, in fact, many of the best performing stocks actually sport high P/E ratios: “Most of the best growth stocks seldom trade at a low P/E ratio. In fact, many of the biggest winning stocks in history traded at more than 30 or 40 times earnings before they experienced their largest advance….. The really exciting, fast growing companies with big potential are not going to be found in the bargain bin. You don’t find top notch merchandise at the dollar store” (pg. 44). Summing up, Minervini concludes: “My suggestion is to forget this metric [P/E ratio] and seek out companies with the greatest potential for earnings growth” (pg. 54).In Chapter 5, “Trading With The Trend”, Minervini hammers home the primary role technicals play in his stock selection: “When I am screening for superperformance stocks, my initial filter is rooted in strict qualifying criteria that are based purely on a stock’s technical action and is designed to align my purchase with the prevailing primary trend…. Simply put, no matter how good a company looks fundamentally, certain technical standards must be met for it to qualify as a buy candidate” (pg. 63). Amplifying this point later in the chapter he writes: “To compound your capital rapidly, you must be where the action is; you can’t afford to have your money tied up in a stock waiting for what you think is a great fundamental story to get noticed by the rest of the world” (pg. 83).It’s worth pointing out that this runs contrary to the practice of many great value investors who seek out stocks that are undervalued and misunderstood by the market. They get in early and make their money when the market comes around to their point of view. Unlike Minervini, they are willing to wait when they have conviction in their fundamental analysis.In Chapter 7, “Fundamentals To Focus On”, Minervini tells you what he’s looking for fundamentally: “[Superperformance stocks] are going strong because of a powerful force behind them: growth – real growth – in earnings and sales” (pg. 118). Later in the chapter: “Really successful companies generally report earnings increases of 30 to 40 percent or more during their superperformance phase” (pg. 127).Chapter 9, “Follow The Leaders”, sums up the kind of stocks Minervini likes: “I made 99 percent of my profits in the stock market by trading the leading names” (pg. 161). As far as timing: “More than 90 percent of superperformance stocks emerge from bear markets and general market corrections” (pg. 164). In other words, the big money is made buying the leading stocks that emerge first from nasty bear markets. For example, think about hedge fund manager David Tepper who made billions buying the financials coming out of the 2007-09 bear market.Trade Like A Stock Market Wizard is a great book by a great trader. For those of us interested in the market, it’s one we can’t afford not to read.

A game-changing book by Mark; he gives you the fine detail into his strategies/tactics for selecting emerging growth companies. So many amazing tips in this book; has taught me how to run reports and select new growth companies, and generally how to manage your portfolio. Couldn't recommend this book highly enough, gave me a tonne of value. Well done Mark and thank you!

Muy buen libro, un libro obligatorio para cualquier especulador

El libro, y llevo muchos leidos en temas de inversion, que me ha hecho revisar y cambiar mi estrategia de inversion. Altamente recomendable.

O melhor dos melhores!Este livro é o mais completo que já li sobre o estudo de tendências, comportamento de preço, volume, e fundamentos de empresas que possuem uma performance acima da média na bolsa.Estudo já há algum técnicas para seguir tendencia no mercado mas gosto de misturar comportamento de preço (demanda do mercado) com fundamentos da empresa. Já li muitos livros de análise técnica dos mais diversos assuntos e também já li vários dos livros indicados pelo Florian Bartunek, Henrique Bredda, Dynamo entre outras. O livro do Minervini é fora de série. Aborda diversos assuntos de maneira muito esclarecedora. Pra quem já estuda tem bastante tempo, ele faz muito bem o trabalho de juntar vários conteúdos distintos e te entregar uma filosofia de investimentos que te faz focar nas informações essenciais.Definitivamente dos mais de 30 livros que li, este está no top 3. Por causa disso minhas próximas duas leituras são os outros 2 livros dele. Vale cada centavo!

One of the best book that comprehensively describes and adapts the CAN SLIM strategy. Minervini, inspired by O’Neil, writes about the system that had made him achieve super performance for over 30 years.