If a trade goes wrong, sell immediately. A 10% loss requires an 11% gain to break even, but a 50% loss requires a 100% gain just to get back to zero.
Stage 2: Advancing Phase (BUY) / \ / \ / \ Stage 3: Top Area / \_______ / \ / \ _______/ \ Stage 4: Declining Phase Stage 1: Neglected Phase \ \ Stage 1: The Neglected Phase (Consolidation)
To achieve superperformance, a trader must transition from a passive investor to a specialized technician who only buys stocks poised for immediate, explosive growth. The goal is to maximize the velocity of your capital by entering a stock just as it begins its most rapid upward advancement. The SEPA Methodology
If there is one mantra that defines Mark Minervini, it's "approach every trade risk first". This is non-negotiable. His early career losses taught him that a few large losses can destroy a portfolio. To survive and thrive, he implemented iron-clad rules: If a trade goes wrong, sell immediately
Trade Like A Stock Market Wizard: How To Achieve Super Performance In Stocks In Any Market
Never place a trade without knowing exactly where you will exit if you are wrong. Your stop-loss should be placed right below the pivot point or the recent minor low, typically ranging between from your entry. The Risk-to-Reward Ratio
“You don’t have to get it right most of the time. You just have to not lose much when you’re wrong, and make a lot when you’re right. A 30% win rate with a 5:1 reward-to-risk ratio makes you a fortune.” The goal is to maximize the velocity of
Pre-determined stop-loss orders protect your capital if the trade fails. 3. The Trend Template: The Non-Negotiable Filter
A stock’s price history can be broken down into four distinct phases. Superperformers ruthlessly eliminate Stages 1, 3, and 4 from their portfolios, focusing 100% of their capital on Stage 2.
Stage 2: Advancing Phase (BUY ZONE) /\ / \ / \ Stage 3: Top Area (Distribution) / \_______ / \ / \ Stage 4: Declining Phase _______/ \__________ Stage 1: Neglect Phase (Basing) Stage 1: The Neglect Phase (Basing) His early career losses taught him that a
The stock's price swings become progressively smaller (e.g., from a 25% correction to 10%, then 5%).
Is there a clear acceleration in quarterly EPS and sales growth?