A Forensic Investigation into Mark Minervini's Trading

Methodologies and Risk Management Frameworks

Executive Summary
Mark Minervini's unparalleled success in the financial markets, characterized by triple-digit annual returns and
multiple U.S. Investing Championship titles, is not a product of chance but the direct result of a meticulously
engineered and rigorously applied trading system. At the core of his approach lies the Specific Entry Point
Analysis (SEPA) methodology, a "surgical-precision" framework that synergistically integrates fundamental and
technical analysis to identify high-potential stocks poised for significant price appreciation. The bedrock of
Minervini's entire system is an unwavering "risk-first" philosophy, where capital preservation is paramount, and
every trade is initiated with a predefined, disciplined stop-loss. This systematic control of downside risk, coupled
with aggressive yet strategic profit-taking, allows for the consistent compounding of capital. His methodology is
further distinguished by a profound understanding of market dynamics, focusing on aligning with prevailing trends
and identifying leading stocks within strong industry groups. Minervini's emphasis on psychological discipline,
continuous learning, and objective decision-making underpins the consistent execution of his rules, transforming
market volatility into opportunities for "Superperformance."

Chapter 1: Introduction to Mark Minervini's Superperformance

Approach
1.1. The Genesis of SEPA®: A Systematic Path to Outsized Returns
Mark Minervini stands as a luminary on Wall Street, renowned for a trading career spanning over three decades
1
marked by extraordinary performance. His prominence was cemented by his feature in Jack Schwager's seminal
1
work, "Stock Market Wizards". Minervini's track record is statistically exceptional, including two U.S. Investing
Championship victories: a 155% annual return in 1997 and an astounding 334.8% annual return in the $1,000,000-
2
plus stock division in 2021. Demonstrating the power of his system, he transformed a modest initial capital of a
few thousand dollars into millions, achieving an average annual return of 220% for over five consecutive years with
only one losing quarter, culminating in an incredible 33,500% compounded total return. This remarkable feat
implies that a hypothetical $100,000 account could have grown to over $30 million in just five years under his
2
disciplined management.

Central to Minervini's consistent success is his proprietary and trademarked methodology, Specific Entry Point
5 7
Analysis (SEPA). SEPA is characterized as a "highly disciplined," "surgical-precision trading strategy" designed
to deliver exceptional returns across diverse market conditions. Its efficacy stems from a meticulous combination
5
of stringent risk management, rigorous self-analysis, and unwavering perseverance. The fundamental objective of
SEPA is to pinpoint high-potential stocks before they embark on substantial price movements, thereby enabling
8
traders to establish positions at the most opportune moments. The evolution of SEPA was a deliberate process,
born from Minervini's relentless pursuit of a reliable, systematic approach to swing trading. This methodology was
refined through years of intensive study, persistent trial, and real-world application, with valuable lessons gleaned
8
from both his triumphs and setbacks during the formative stages of his career.

Minervini's documented performance figures, such as averaging 220% annually for over five years and achieving a
33,500% total return, are statistically exceptional and far exceed what could be attributed to mere chance or
 2
transient market conditions. The consistent description of his method as a "proven, time-tested trading system"
5 5 8
, a "trademarked stock market method" , and a "reliable, systematic strategy" strongly indicates that his
success is not random. Instead, it is the direct outcome of a highly structured, repeatable, and continuously
7
refined process. The phrase "surgical-precision trading strategy" further reinforces that his approach is
deliberate, analytical, and leaves little to chance. This suggests that while market dynamics are inherently
unpredictable, the underlying principles of identifying and capitalizing on opportunities can be systematized and
consistently applied, leading to superior, rather than ordinary, returns. Mark Minervini's "Superperformance" is a
compelling demonstration of the efficacy of a meticulously developed and rigorously applied systematic trading
methodology, specifically his SEPA framework. This highlights that achieving extraordinary returns in the financial
markets is primarily a function of a well-defined, repeatable process, rather than relying on speculative intuition or
transient market luck.

1.2. Core Tenets: Risk-First Philosophy and Disciplined Execution

Minervini unequivocally positions capital preservation as the paramount objective and foundational cornerstone of
9
all his trading endeavors. His operational approach is consistently "risk-first," where the evaluation of potential
10
losses is deemed significantly more critical than the assessment of potential gains. He starkly states, "the game
10
is over if he loses all his chips" , underscoring the absolute necessity of protecting one's trading capital for long-
9
term viability and success.

Successful trading, according to Minervini, fundamentally necessitates a disciplined mindset and an unemotional,
9
objective outlook. He places immense importance on cultivating a mindset geared towards consistent success,
effectively managing emotional responses, and assuming complete personal responsibility for all trading
9
outcomes. He draws a powerful analogy between a trader's mental preparation and an athlete's readiness for
competition, advocating for visualization exercises to maintain composure and make well-considered choices
9 10
irrespective of market fluctuations. He explicitly asserts that "without discipline, rules are meaningless" ,
highlighting that even the most robust strategies are ineffective without strict adherence. Furthermore, he
stresses the continuous pursuit of knowledge, learning from past experiences, and adapting to evolving market
9
volatility as indispensable elements for sustained success.

9
Minervini's unwavering commitment to a "risk-first" approach and "capital preservation" extends beyond mere
financial mechanics; it is deeply intertwined with profound psychological principles. The emphasis on cultivating
9
an "unemotional, objective outlook" and "taking full responsibility" directly addresses the inherent human biases
that frequently undermine trading success. Emotions such as fear, greed, and ego often compel traders to deviate
from their plans, particularly by holding onto losing positions or taking excessive risks. Minervini's analogy of
12
"trading without a stop loss is like driving a car without brakes" powerfully illustrates the catastrophic
consequences of emotional decision-making in the absence of stringent risk controls. By pre-defining exit points
and prioritizing the downside, he systematically removes the subjective, emotional interference that typically leads
to admitting fault or accepting small losses, thereby enabling rational and objective execution even under
pressure. Mark Minervini's "risk-first" philosophy is not merely a technical guideline but a fundamental
psychological discipline. Its primary purpose is to counteract inherent human biases, such as loss aversion and
ego, which are often the root cause of capital destruction in trading. By institutionalizing stringent risk
management protocols, Minervini empowers traders to maintain objectivity, adhere to their systems, and ensure
long-term survival and profitability in inherently volatile financial markets.
Chapter 2: Deconstructing Minervini's Trading Techniques
2.1. The "SPEAR" Methodology: A Granular Autopsy
Note: While the prompt uses "SPEAR," Minervini's primary trademarked methodology is "SEPA" (Specific Entry
Point Analysis). The components listed under "SPEAR" in the prompt align perfectly with the core elements of his
SEPA system and broader trading philosophy. For clarity and consistency with Minervini's own terminology, this
report will primarily refer to SEPA while addressing the specific components of SPEAR as integral parts of that
overarching methodology.

2.1.1. Specific Entry Point

The SEPA methodology is meticulously designed to identify precise entry points where the probability of upward
8
momentum is at its zenith, aiming to enter positions before the majority of a significant price move has occurred.
6
Minervini's explicit goal is to acquire a stock and see it immediately move into a profit. This precision involves a
synergistic integration of specific chart patterns, detailed volume analysis, and rigorous relative strength
11
assessment. The ideal entry is typically defined as being within 5% of the breakout point from a well-formed
13
base or consolidation pattern. Additionally, Minervini utilizes "cheat entries" as a strategy to initiate a position
earlier than the conventional breakout, specifically when signs indicate seller exhaustion, price action tightening,
14
and volume contraction, thereby offering a low-risk, high-reward setup.

Although no single, explicit "pre-entry checklist" document is provided, the numerous stringent criteria that a
stock must satisfy (e.g., Minervini's Trend Template, Volatility Contraction Pattern characteristics, fundamental
filters) collectively function as a comprehensive multi-point checklist that must be thoroughly reviewed before
7
initiating any trade. Minervini himself emphasizes the critical importance of such preparation, stating, "No setups
= no trades. Use a checklist before every entry" and advising against trading unless "three out of five of your
17
safety checks are true". He also suggests the strategic discipline of pre-selecting a limited number of stocks
17
(e.g., 1-2) and adhering to them to maintain focus.

9
A cornerstone of Minervini's approach is the cultivation of an unemotional, objective outlook. Traders are urged
to "concentrate on aspects you can control," which explicitly includes the identification of exact entry and exit
9 11
points. He strongly cautions against impulsive decisions that are driven by transient emotions or market hype.
The psychological discipline required involves waiting patiently for clear trend establishment and rigorously
18
avoiding premature or impulsive entries. Furthermore, he highlights the necessity of actively recognizing and
overcoming common cognitive biases such as confirmation bias, anchoring, and loss aversion, which can
11
significantly impair rational decision-making.

6
The directive for "specific entry points" and the ambition to buy a stock and be "at a profit instantly" might
superficially suggest a strategy focused on rapid, aggressive action. However, a deeper analysis reveals that this
precision is inextricably linked with profound patience and discipline. The strict adherence to a "pre-entry
17 11
checklist" and the requirement for "multiple indicators align" before initiating a trade fundamentally contradict
impulsive behavior. Instead, they demand a deliberate, waiting stance. Moreover, the emphasis on "low-risk entry
19 10
opportunities" and entering "as close to his stop loss as possible" demonstrates that the precision sought is
not about speed, but about optimizing the risk-reward profile at the exact moment of entry. This implies that
Minervini patiently waits for the market to confirm his analytical framework and the underlying supply/demand
dynamics before committing capital, rather than attempting to predict future price movements speculatively. Mark
Minervini's "Specific Entry Point" is not a speculative guess but a meticulously calculated decision, underpinned by
rigorous pre-entry validation and unwavering psychological patience. This approach ensures that entries are
executed only when a confluence of technical and fundamental factors presents a low-risk, high-probability
opportunity, thereby maximizing the potential for immediate profitability and favorable risk-reward dynamics.

2.1.2. Aggressive Exit

Minervini's methodology mandates an "aggressive profit-taking and loss-cutting" approach. For profitable
20
positions, he emphasizes the critical importance of "nailing down profits when you have them in your grasp". His
strategy involves "selling into strength," consistently liquidating positions as his equity reaches new highs. This
4
proactive profit realization is designed to mitigate the volatility of his equity curve. He explicitly states that he is
not concerned if a stock continues to appreciate after he has sold, as his overarching objective is to consistently
12
achieve gains that significantly outweigh losses, thereby compounding capital over time.

13
For profit-taking, Minervini advises taking partial profits after achieving a 20-25% gain. He also targets selling
4
half of his position when the gain achieved is double the original stop-loss amount. For aggressive loss-cutting,
he advocates for a strict, predefined stop-loss. His historical average loss is approximately 4-5%, with a maximum
10
permissible loss of 10% on any single trade. In challenging or weak market conditions, he proactively tightens his
5
stop-losses, reducing them from a typical 7-8% to a stricter 5-6%. Losses must be cut immediately and without
10
any hesitation. A fundamental tenet of his strategy is that he has never executed a trade in over three decades
12
without implementing a stop-loss order. The moment a stock's price triggers his predetermined stop-loss, he
10
liquidates the position "without question". He explicitly warns against the detrimental use of "emotional stops,"
10
which often lead to significantly larger and more damaging losses.

Minervini's approach to trade exits presents a critical dichotomy: his loss-cutting mechanism is characterized by
10 4
an absolute and unquestioning adherence , while his profit-taking strategy is aggressive and dynamic. The
predefined, fixed percentage stop-loss (e.g., 5-8%, max 10%) serves as a non-negotiable, impenetrable defense.
In contrast, profit-taking involves the proactive act of "selling into strength" and "nailing down profits," even with
4
the explicit acknowledgment that the stock might continue to appreciate further. This contrasting approach
underscores a pragmatic understanding of market cycles and the often-ephemeral nature of unrealized gains. It
prioritizes the consistent realization of profits for compounding purposes, rather than the speculative pursuit of
every marginal percentage point, which carries the inherent risk of giving back substantial gains. This dynamic
management of winners, juxtaposed with the rigid control of losers, is a central pillar of his capital preservation
philosophy. Mark Minervini's aggressive exit strategy is defined by an absolute, unemotional commitment to
cutting losses at predefined, tight percentages, while concurrently employing a flexible, "sell into strength"
approach for profitable trades. This dynamic profit-taking, even if it means foregoing some potential upside,
ensures that capital is consistently realized and compounded, thereby prioritizing tangible gains over hypothetical
maximums and systematically minimizing the impact of inevitable losing trades.

2.1.3. Risk Management within SPEAR

8
Risk management is not an ancillary component but is fundamentally "at the heart of SEPA". It is meticulously
"interwoven" into every facet of trade execution, signifying that the establishment of stop-loss limits and the
8
precise timing of exits are as critically important as the initial entry decision. Minervini's overarching operational
10
principle is consistently "risk-first".
Risk is stringently controlled by initiating long trades as close as possible to the predetermined stop-loss level, a
10
strategy he refers to as trading near the "danger point". The precise entry points identified through the SEPA
6
methodology inherently contribute to risk reduction by aiming for optimal risk/reward ratios from the outset.
Furthermore, position sizing is directly and mathematically linked to the stop-loss percentage, ensuring that the
10
total dollar risk per trade remains consistent and within predefined limits.

The explicit requirement to analyze risk management within the SPEAR framework, distinct from broader portfolio
risk, highlights its intrinsic role in individual trade execution. Minervini's emphasis on "precise entry points" that
6
offer the "lowest risk and highest reward" is not solely about maximizing potential gains; it is fundamentally about
10
minimizing initial exposure per share. By strategically entering a trade "as close to his stop loss as possible" , the
absolute price distance to the stop is inherently small. This allows for a proportionally larger position size for the
same predefined dollar risk. This proactive, embedded risk mitigation at the very inception of a trade is a hallmark
of his methodology, distinguishing it from reactive risk management applied after a position has been established.
It ensures that risk control is an architectural element of the trade, not a subsequent adjustment. Risk
management within Mark Minervini's SPEAR framework is fundamentally proactive and integrated directly into the
precise entry selection process. This approach enables optimal risk-reward ratios by minimizing the initial capital
at risk per share, thereby allowing for larger position sizes for a given dollar risk. Consequently, risk control
becomes an intrinsic and inseparable component of individual trade execution, rather than a reactive measure
applied after a position has been established.

2.1.4. Right Side of the Market

10
Minervini's core philosophy dictates that traders must "trade with the trend". He exclusively acquires stocks that
are in established long-term uptrends, specifically focusing on the "Stage 2" advancing phase of a stock's price
10
cycle. He meticulously assesses the overall market sentiment and direction, strategically setting higher profit
targets in confirmed bullish markets and adopting more conservative targets in bearish or highly volatile
24
environments. His routine involves leaning bullish when a significant number of stocks are setting up and
breaking out of bases, and remaining bullish as stocks continue to achieve new highs. Conversely, he leans bearish
4
when few stocks are setting up and remains bearish when breakouts fail and stocks consistently make new lows.

Minervini employs a stringent "Trend Template" to identify and align with prevailing market trends and sector
leadership. This template, which he refers to as his "inviolable standard," ensures that only stocks exhibiting
7
strong upward momentum are considered. The key metrics and observations within this template include:

● The current stock price must be above both its 150-day (30-week) and 200-day (40-week) moving average
5
price lines.
5
● The 150-day moving average must be positioned above the 200-day moving average.
● The 200-day moving average line must be trending upward for at least 1 month, with a preference for 4-5
5
months minimum in most cases.
7
● The 50-day moving average must be above both the 150-day and 200-day moving averages.
5
● The current stock price must be trading above the 50-day moving average.
● The current stock price must be at least 30% higher than its 52-week low. Many of the most successful
selections will be 100%, 300%, or even greater above their 52-week low before they emerge from a sound
5
consolidation and initiate a large-scale advance.
● The current stock price must be within at least 25% of its 52-week high, with closer proximity to a new high
 5
being more favorable.
● The relative strength ranking (as reported in Investor's Business Daily) should be no less than 70, with a
5
preference for rankings in the 80s or 90s, which typically characterize the best selections.

Minervini also developed a "Leadership Profile" to identify the qualities and traits of historically successful stocks,
6
which helps him discern the causes of their outperformance for future identification.

Aligning with strong market trends is not merely a preference but a fundamental strategic imperative for Minervini.
By focusing exclusively on stocks in confirmed Stage 2 uptrends and within leading industry groups, he
dramatically increases the probability of his trades succeeding. This approach provides a "tailwind" that amplifies
individual stock performance, making it easier for winning trades to generate substantial gains while
simultaneously reducing the inherent risk associated with fighting against the broader market direction. This is
why he emphasizes that 99% of the biggest winning stocks have made their moves above the 200-day moving
3
average with the 200-day trending upwards. The market's overall health and direction dictate his level of
aggressiveness, position sizing, and cash allocation. In strong, confirmed bull markets, he increases his exposure
and takes larger positions, capitalizing on widespread upward momentum. Conversely, during periods of market
weakness, high volatility, or declining breadth, he significantly reduces his exposure, raises cash, and may even
avoid trading altogether. This adaptive strategy ensures that his capital is deployed most efficiently in favorable
environments and protected during adverse conditions, thereby minimizing drawdowns and preserving capital for
future opportunities.

2.2. Stock Selection Criteria: A Surgical Examination

2.2.1. Volatility Contraction Pattern (VCP)
The Volatility Contraction Pattern (VCP) is a cornerstone of Minervini's stock selection, serving as a powerful setup
26
to identify potential breakout opportunities. This pattern emerges when both price volatility and trading volume
26
gradually decrease, creating what Minervini terms the "line of least resistance". The core principle of the VCP is
that each successive price pullback or correction becomes smaller than the last, leading to a progressively tighter
26
trading range. This diminishing price action indicates that selling pressure is waning, and supply is drying up,
26
while demand may be subtly building, setting the stage for an explosive upward move.

A VCP typically forms with 2 to 6 contractions, with each pullback being smaller than the preceding one, creating
26
a symmetrical "base" that tightens from left to right. For instance, an initial pullback might be 25%, followed by
26
15%, and then a final contraction of 8%. Ideally, each contraction sees a decrease in volatility of approximately
27
50%. During these contractions, trading volume should also decrease, signaling reduced activity from sellers
26
and indicating that supply is drying up. The pattern culminates at a "pivot point" where the price range is at its
tightest and volume is very low. A breakout above this level, accompanied by a significant increase in volume, is
26
interpreted as a strong signal of institutional buying and potential for continued upward movement.

The psychological underpinnings of the VCP illustrate the evolving balance between buyers and sellers. Initially,
sharp pullbacks dominate as sellers control the market. However, as institutional buyers begin to accumulate
shares, they establish support levels, preventing further price declines. Each subsequent, smaller pullback
signifies that sellers are losing momentum, and fewer investors are willing to sell, indicating a decrease in fear.
This shift in market sentiment, as the stock holds up better with each dip, suggests that larger players are
accumulating. The tightening price and volume contractions create a "pressure cooker" effect, building
anticipation among market participants. When the stock finally breaks out on increased volume, it confirms that
demand has decisively surpassed supply, releasing pent-up pressure and attracting new buyers who validate the
26
breakout and reinforce the stock's strength. The VCP visually represents a fundamental shift in supply-demand
dynamics. The gradual reduction in volatility and volume during the contraction phases indicates that the available
supply of shares is being absorbed by stronger hands (institutional investors), leading to a state of equilibrium
where selling pressure is exhausted. This methodical accumulation, often invisible to the average trader, creates a
coiled spring effect. The subsequent breakout on increased volume is the market's clear signal that demand has
overwhelmed supply, confirming the underlying accumulation and signaling the start of a significant price
advance. This pattern provides a high-probability entry point by allowing traders to capitalize on this confirmed
imbalance.

2.2.2. Fundamental Prerequisites

Minervini's stock selection process is not solely technical; he places significant emphasis on robust fundamental
3
characteristics, recognizing that "fundamentals drive the technicals". He seeks companies with strong, consistent
earnings and sales growth, coupled with solid financial health, as these factors provide a sound basis for long-
8
term growth potential beyond mere technical indicators.

His precise fundamental thresholds and characteristics include:

● Earnings Per Share (EPS) Growth: Minervini looks for a minimum of 20-50% growth in EPS, often
15
preferring even higher rates. Quarterly EPS growth should be at least 25%, with accelerating growth over
15
the last two quarters. Annual EPS growth should also be at least 25% for each of the last three years, with
23
acceleration in the last full year.
15
● Sales Growth: He requires strong sales growth, typically 20% or more. Quarterly sales growth should be at
23
least 25%, with acceleration in each of the last two quarters. Annual sales growth should be at least 15% for
23
the past three years, with acceleration in the last year. Rising revenues indicate robust demand for the
15
company's products or services.
23
● Profit Margins: Minervini looks for companies with "improved" profit margins , indicating positive growth in
32
operating and net margins over the past year, reflecting efficient operations and cost control.
● Return on Equity (ROE): While no explicit minimum percentage is provided, strong ROE is a characteristic of
companies he considers. For example, he highlights stocks with ROE of 10.52% and 23.94% as reflecting
32
"strong profitability" and "effective utilization of shareholder equity".
● Institutional Ownership: He looks for a "healthy ownership distribution" with significant institutional
shareholders, such as 61.53% or 63.58%, as this reflects institutional confidence and can foster increased
32 31
trading activity. Institutional sponsorship is crucial for fueling price movements.

Minervini's integration of rigorous fundamental criteria with technical analysis serves a critical purpose: it provides
the underlying "fuel" for sustained price appreciation. While technical patterns signal potential breakouts, strong
earnings and sales growth, healthy profit margins, and institutional accumulation confirm that the price movement
is backed by genuine business strength, rather than speculative hype. This dual-filter approach helps to
differentiate true market leaders from "momentum traps"—stocks that may show temporary technical strength
but lack the fundamental substance to sustain long-term gains. By ensuring that only fundamentally sound
companies are considered, Minervini significantly reduces the risk of investing in transient trends, thereby
increasing the probability of identifying stocks capable of "Superperformance."
2.2.3. Technical Prerequisites
Minervini's methodology is deeply rooted in the analysis of price action, volume, moving averages, and relative
strength, which collectively form his "Trend Template" and other screening filters.

● Price Action: Stocks must be in a clear uptrend, characterized by consistent positive price action, including
8
higher highs and higher lows. He seeks stocks that are at or near their 52-week highs, emphasizing that
3
"leadership is never at the 52-week-low list".
8
● Volume Analysis: Volume is critical for confirming price action and signaling institutional interest. Minervini
looks for:
○ Increasing Volume on Breakouts: Breakouts from consolidation patterns should be accompanied by a
8
surge in volume, indicating strong buying interest and institutional accumulation.
○ Decreasing Volume on Pullbacks/Consolidation: During periods of consolidation or pullbacks, volume
should decrease, suggesting a lack of significant selling pressure and that weak hands are being shaken
15
out.
○ Volume Spikes: Sudden increases in trading volume are closely monitored as they often indicate
28
institutional buying, which can significantly impact a stock's price movement.
○ Quiet Volume Periods: Phases where volume is below average, particularly during the formation of
28
"handles" in patterns like cup-with-handle, are key indicators often preceding strong breakouts.
● Moving Average Confluence: Minervini's Trend Template relies on a precise alignment of moving averages
to confirm a Stage 2 uptrend:
5
○ The current stock price must be above its 150-day (30-week) and 200-day (40-week) moving averages.
5
○ The 150-day moving average must be above the 200-day moving average.
○ The 200-day moving average must be trending upward for at least 1 month, preferably 4-5 months
5
minimum.
7
○ The 50-day moving average must be above both the 150-day and 200-day moving averages.
5
○ The current stock price must be above the 50-day moving average.
5
○ The current stock price must be at least 30% above its 52-week low.
5
○ The current stock price must be within 25% of its 52-week high.
● Relative Strength (RS) Analysis: Minervini places significant emphasis on RS, particularly the IBD-style RS
5
rating and line.
5
○ He screens for stocks with an RS ranking of no less than 70, preferably in the 80s or 90s. This indicates
15
the stock is outperforming at least 70% of the market.
○ The IBD-style RS Rating is a numerical score (1-99) measuring a stock's performance over 252 trading
days (one year) relative to a benchmark like the S&P 500 (SPY). It is a weighted average of price changes
over 63, 126, 189, and 252 days, with double weight often given to the most recent 3-month
34
performance.
○ He looks for a rising RS Line and RS New Highs to spot breakout candidates, while avoiding stocks with a
35
declining RS Line or an RS Rating below 70.

The meticulous combination of these technical indicators creates a robust filter, significantly reducing false
signals and increasing the probability of identifying stocks poised for substantial gains. Each indicator provides a
unique layer of confirmation, ensuring that only the highest-quality setups are considered. For instance, a stock
meeting all moving average criteria, showing strong relative strength, and breaking out on heavy volume is a high-
conviction trade. This multi-factor technical confluence allows Minervini to filter out market noise and focus on
stocks that exhibit genuine institutional accumulation and strong upward momentum.

2.2.4. Industry Group Strength

Minervini's methodology for identifying leading industry groups and sectors is integral to his stock selection
15
process. He believes that a stock's industry group plays a significant role in its potential for success. He prefers
15
to select stocks from industries that are in the top quartile of performance. This ensures that he is investing in
15
sectors that already possess strong momentum, which increases the overall chances of a successful trade.

To identify these leading groups, he uses sector performance tools and prioritizes stocks within those areas where
16
capital is actively flowing. Once leading industries are identified, he filters for the strongest individual stocks
within those groups by applying his rigorous fundamental and technical criteria, such as high relative strength
16
compared to peers within the same sector.

Focusing on sectoral leadership acts as a powerful force multiplier for individual stock performance. When a stock
is part of a strong, leading industry group, it benefits from a collective tailwind that can amplify its gains and
provide additional support during market fluctuations. This approach increases the probability of finding
"Superperformance" stocks because leaders tend to emerge from leading sectors. It also helps in managing
portfolio risk by concentrating capital in areas of the market that are demonstrating clear strength, rather than
diversifying into underperforming or stagnant sectors.

2.3. Entry and Exit Rules: Precision and Nuance

2.3.1. Definitive Entry Triggers
Minervini's entry strategy is predicated on precision, aiming to enter trades at the point of least resistance with
maximum upside potential. His definitive entry triggers primarily involve breakouts from well-defined consolidation
patterns:

● Breakout from Bases: The ideal entry occurs when a stock breaks out above a recent base or consolidation
11
pattern, such as a Volatility Contraction Pattern (VCP), Cup-with-Handle, Flat Base, Triangle, or Flag.
13
● Proximity to Breakout Point: The optimal entry is typically within 5% of the breakout point. This tight
range is crucial for maintaining a favorable risk-to-reward ratio.
11
● Volume Confirmation: Breakouts must be accompanied by "strong volume". This surge in volume confirms
institutional buying interest and validates the strength of the breakout. Prior to the breakout, volume should
14
ideally "dry up," indicating seller exhaustion.
● "Cheat Entries": Minervini also employs "cheat entries" to get into a stock earlier than the conventional
breakout point. These occur when sellers are exhausted, price action tightens, and volume contracts, offering
14
a low-risk, high-reward setup ahead of the main move.

2.3.2. Stop-Loss Placement Rules

Stop-loss orders are the "ultimate defense mechanism" in Minervini's trading, serving as a non-negotiable
38 12
safeguard for capital. He views trading without a stop-loss as "driving a car without brakes".

● Initial Stop Placement:

 13
○ Percentage-Based: Initial stop-losses are typically placed 5-8% below the entry price. The maximum
10 12
permissible loss on any single trade is 10%. His average loss is around 4-5%.
○ Structural: Stops are often placed just below the low of the last contraction in a VCP or other base
29
patterns.
○ Volatility-Adjusted (for initial placement): While Minervini states he "never adjust[s] my stop for
12
volatility" dynamically during a trade , he does use indicators like 2 times the 20-period Average True
27
Range (ATR) as a method for calculating initial stop-loss levels, particularly for position sizing. This
implies that ATR helps define the structural stop-loss based on a stock's inherent volatility at the time of
entry.
● Rules for Adjusting or Trailing Stops:
○ Price-Based: Once a trade becomes profitable, he aims to move the stop-loss to the breakeven point
4
(entry price) to protect initial capital.
○ Profit-Based: After a 20-25% gain, he takes partial profits and then moves the stop-loss up to
breakeven or trails it using moving averages like the 21-day or 50-day Exponential Moving Average
13
(EMA).
○ Staggered Stops: In volatile markets or when holding a "key leader" stock, especially at the beginning of
a new bull market, he may use "staggered stop losses." For example, with an 8% overall risk, he might
place a stop on half the position at 6% and the other half at 10%. This brackets the risk around the
desired average, providing a bit more room for a portion of the position to avoid being "knocked out"
12
prematurely.
● Psychological Discipline: Strict adherence to stop-loss rules is non-negotiable. Minervini emphasizes selling
10
"without question" the moment a stop-loss is triggered. He warns against "emotional stops" that lead to
10
larger losses and stresses that the market is never wrong, only the trader is. This psychological fortitude is
12
built through "perfect practice" and accepting losses as a cost of doing business.
● Specific Scenarios for Widening or Tightening Stops:
○ Tightening: In difficult or weak market environments, he proactively tightens stop-losses, reducing them
4
from a normal 7-8% to a stricter 5-6%.
○ Widening: As mentioned, staggered stops allow for a slightly wider range on a portion of the position in
12
specific, high-conviction scenarios, without increasing overall risk.

2.3.3. Profit-Taking Mechanisms

Minervini's profit-taking is aggressive and dynamic, designed to "nail down profits" while allowing winners to run,
but not indefinitely.
13
● Partial Profits: He typically takes partial profits after a 20-25% gain. This strategy helps to de-risk the
trade and lock in gains.
● Selling into Strength: He consistently sells into strength, aiming to liquidate positions as the stock makes
4
new highs. The objective is not to capture the absolute peak but to realize sufficient profit and repeat the
10
process.
● Moving Average Exits: A full exit is triggered if the price closes below the 50-day or 150-day EMA on
13
volume, signaling a weakening trend.
● Time-Based Exits: If a stock trades sideways and fails to make progress within a reasonable timeframe,
 Minervini employs a "time stop" to exit the position, recognizing that capital tied up in stagnant trades is
12
unproductive.
● Volume Confirmations for Exits: While primarily an entry confirmation, volume also plays a role in exits. A
strong up-move on declining volume or a significant price break on increased volume can signal a topping
23
phase or distribution, prompting an exit.

2.4. Charting Patterns and Indicators: The Minervini Atlas

2.4.1. Charting Patterns
Beyond the Volatility Contraction Pattern (VCP), which is extensively covered, Minervini relies on several other
classical charting patterns that signal periods of consolidation and potential breakouts:

● Cup-with-Handle: This pattern, resembling a teacup with a handle, indicates a period of consolidation (the
cup) followed by a smaller, tighter consolidation (the handle) before a breakout. Minervini looks for increased
11
volume on the breakout from the handle.
● Flat Bases: These are rectangular consolidation patterns where price moves sideways within a narrow range
after a prior advance. They signal that investors are holding shares, anticipating further gains, and are
11
confirmed by a breakout on increased volume.
● Flags (including High Tight Flag/Power Play): A powerful continuation pattern, a flag resembles a small
flag on the chart after a sharp, nearly vertical price rise (the flagpole). The "High Tight Flag" or "Power Play" is
a particularly explosive variant, characterized by an initial price surge of 100% or more in a short period (4-8
weeks), followed by a tight consolidation (1-3 weeks, with a retrace of no more than 10-20%) on decreased
26
volume, preceding a breakout on increased volume.
● Triangles: These patterns, formed by converging trendlines, indicate a tightening of price action and
29
decreasing volatility, often preceding a breakout.
● Double Bottoms: While less common for Minervini's primary entry, this reversal pattern involves two lows
with a rebound in between. In the CAN SLIM system (which shares some principles with Minervini's), Double
Bottoms are viewed as continuation patterns in an uptrend, where strong stocks re-establish upward
26
momentum after testing support.

Minervini relies on these patterns because they are visual representations of the supply-demand dynamics at play.
They indicate periods where selling pressure is diminishing, and institutional accumulation is occurring, leading to
a "coiling" action that precedes significant price increases. These patterns offer low-risk entry opportunities by
19
providing clear pivot points and defined stop-loss levels, making them ideal for his momentum-based strategy.

2.4.2. Technical Indicators

Minervini integrates several key technical indicators into his decision-making process, using them not in isolation
but in confluence to confirm signals and filter out noise:

● Moving Averages (MA): The 50-day, 150-day, and 200-day Simple Moving Averages (SMA) are fundamental
5
to his Trend Template. He also uses Exponential Moving Averages (EMA) in some applications, as EMAs react
13
faster to recent price action, useful in fast-moving markets. These MAs are used for:
7
○ Trend Identification: Confirming a stock is in a Stage 2 uptrend.
18
○ Support and Resistance: Acting as dynamic support levels during pullbacks.
○ Momentum Confirmation: Alignments (e.g., 50-day MA > 150-day MA > 200-day MA) signal strong
 7
momentum.
13
○ Exit Signals: Price closing below key MAs (e.g., 50-day or 150-day EMA) can trigger a full exit.
● Relative Strength (RS) Rating and Line: As discussed, RS is a critical measure of a stock's outperformance
5
relative to the broader market or its peers. A rising RS line and high RS rating (preferably 80-90+) indicate
35
leadership and institutional accumulation, which are essential characteristics for his stock selection.
8
● Volume: Volume analysis is integrated with every chart pattern and price movement. It confirms the validity
of breakouts (high volume on price increases) and signals diminishing selling pressure during consolidations
8 28
(low volume on pullbacks). Volume spikes indicate institutional interest.
● Relative Strength Index (RSI): While not a core criterion in his Trend Template, RSI is mentioned as a
consideration. Minervini's examples sometimes include stocks with RSI above 78, a level often considered
37
"overbought". This can present a dilemma, as high RSI levels historically precede corrections. He suggests
37
mitigating this by waiting for pullbacks or pairing with sentiment analysis.
● Average True Range (ATR): ATR is used for calculating stop-loss levels, helping to set volatility-adjusted
27
stops.
● Other Mentions (less prominent in core strategy): Anchored VWAP (AVWAP), Stochastic Oscillator, MACD,
DMI (Directional Movement Index) are mentioned in the context of various trading scripts inspired by
46
Minervini's methods, but are not explicitly detailed as his primary tools. His core focus remains on price,
volume, moving averages, and relative strength.

Minervini's reliance on these indicators stems from their ability to provide objective, quantifiable insights into
market behavior. He combines them to filter out noise and focus on stocks that not only show promising technical
8
patterns but are also fundamentally strong. This integrated approach enhances the probability of identifying
28
successful trades and aligns with his overarching emphasis on precision, discipline, and risk management.

Chapter 3: Minervini's Risk Management Strategies

3.1. Position Sizing: The Financial Engineer's Blueprint
Position sizing is a critical component of Minervini's risk management, acting as a "financial engineer's blueprint"
to control exposure and protect capital. It is the art of determining how much capital to allocate to a particular
52
trade, ensuring that no single trade can disproportionately impact the overall portfolio.

● Initial Capital Allocation per Trade: Minervini advises risking no more than 1.25% to 2.5% of total equity
10
on a single trade. For initial "test positions" used to gauge market conditions, he may start with a smaller
27
risk, such as 0.5% of capital. This conservative initial allocation minimizes impact if the trade does not
immediately perform as expected.
● Scaling In/Out Techniques and Conditions: Minervini practices "progressive exposure," a dynamic
technique where market exposure is adjusted based on performance feedback and prevailing market
53
conditions.
○ Scaling In (Adding to Winners): He starts with small "test positions." If these initial trades begin to work
and provide positive feedback, he becomes more aggressive, gradually increasing both position sizing
4 10
and the number of trades. This is part of his "Add and Reduce" trade management technique. He aims
for optimal positions of 20-25% in the best names, with a maximum position size never exceeding 50% of
10
the portfolio.
 ○ Scaling Out (Reducing Exposure): Conversely, if initial positions are stopped out or fail to gain traction,
4
he waits for market conditions to improve before increasing exposure. He also scales out by taking
13
partial profits when a stock reaches his profit targets, reducing his exposure to the remaining position.
● The Relationship Between Stop-Loss Percentage and Position Size: Position sizing is directly and
mathematically linked to the stop-loss percentage. The core principle is to maintain a consistent dollar risk
per trade. This implies an inverse relationship: if a stock's volatility necessitates a wider stop-loss (e.g., 10%),
the position size must be proportionally smaller to ensure the dollar amount risked remains within the
predefined 1.25-2.5% of total equity.
○ Formula Example: If a trader has $100,000 capital and is willing to risk 2% per trade ($2,000), and the
52
stop-loss is $5 per share below the entry price, the position size would be $2,000 / $5 = 400 shares.
This ensures that the potential loss is capped at the predetermined dollar amount, regardless of the
stock's price or volatility.
● Impact of Market Conditions on Position Sizing: Market conditions significantly influence Minervini's
position sizing.
○ Favorable Markets: In confirmed bullish markets with many stocks setting up and breaking out, he
4
increases his aggressiveness, taking larger position sizes and more trades.
○ Unclear/Weak Markets: In difficult or weak markets, he adjusts by taking quicker profits and smaller
4
losses, and significantly reduces his overall exposure and position sizes. He may also get off margin
21
immediately.
○ Bear Markets: In true bear markets, his strategy leads to holding 100% cash, effectively eliminating
51
market exposure and preserving capital.

3.2. Stop-Loss Orders: The Ultimate Defense Mechanism

Minervini's stop-loss philosophy is absolute and forms the bedrock of his risk management. He unequivocally
12
states that trading without a stop-loss is like "driving a car without brakes" , emphasizing its indispensable role in
12
preventing catastrophic losses. He asserts that risk does not manage itself and must be actively controlled. His
average loss throughout his career has been remarkably low, around 4-5%, even accounting for slippage and
10
gap-downs, with a maximum permissible loss of 10% on any single trade.

● Initial Stop Placement:

13
○ Percentage-Based: Stops are typically placed 5-8% below the entry price.
○ Structural: Stops are often placed below a key technical support level, such as the low of the last
29
contraction in a VCP pattern.
○ Volatility-Adjusted (for initial calculation): While Minervini explicitly states he "never adjust[s] my stop
12
for volatility" dynamically during a trade , he does use volatility metrics like 2 times the 20-period
Average True Range (ATR) to calculate initial stop-loss levels. This means ATR helps determine the
appropriate structural distance for the stop-loss based on the stock's typical price swings at the time of
27
entry.
● Rules for Adjusting or Trailing Stops:
○ Price-Based Adjustment: Once a stock moves into profit, he aims to raise the stop-loss to the
4
breakeven point (original entry price) to eliminate initial capital risk.
○ Profit-Based Trailing: After taking partial profits (e.g., at a 20-25% gain), he moves his stop-loss up to
breakeven or trails it using dynamic indicators like the 21-day or 50-day Exponential Moving Average
 13
(EMA).
○ Time-Based Exits: If a stock trades sideways and fails to make expected progress, he employs a "time
12
stop" to exit the position, freeing up capital.
● The Psychological Discipline Required for Strict Stop Adherence: Minervini places immense importance
on psychological discipline. He views selling as a more subjective and emotionally challenging decision than
12
buying. He stresses that traders must accept losses as a "cost of doing business" and maintain emotional
17
detachment from the outcome. The moment a stop-loss is triggered, he exits the trade "without question"
10 10
, emphasizing that "without discipline, rules are meaningless". He warns against "emotional stops" that
10
lead to larger, financially and psychologically damaging losses. He asserts that the market is always right,
10
and the trader is the one who can be wrong, a difficult truth for ego to accept. This unwavering adherence
12
is cultivated through "perfect practice," not merely repetitive action.
● Specific Scenarios Where Stops Might Be Widened or Tightened:
○ Tightening Stops: In weak or difficult market environments, Minervini proactively tightens his stop-
losses. If his normal stop is 7-8%, he may reduce it to 5-6% to compensate for smaller potential gains and
4
increased downside risk in such conditions.
○ Staggered Stops (Situational Widening): For "key leader" stocks, particularly at the beginning of a new
bull market where he wants to ensure he stays in a position, he may use "staggered stop losses." This
involves breaking down a single stop into multiple stops at different price levels (e.g., for an 8% overall
risk, setting half the position's stop at 6% and the other half at 10%). This provides slightly more room for
a portion of the position to avoid being prematurely stopped out by minor volatility, while still averaging
12
the desired risk percentage across the total position. He finds that larger-cap names can sometimes
cause more "whip around" action that triggers stops, while smaller names may break out and generate
12
profit more quickly.

3.3. Overall Portfolio Risk and Drawdown Management: The Grand Strategy
Minervini's approach to overall portfolio risk and drawdown management is holistic and deeply integrated with his
market assessment. His primary objective is to manage total portfolio exposure, control aggregate risk, and
navigate periods of drawdown effectively, always prioritizing capital preservation.

● Holistic Approach to Managing Total Portfolio Exposure: Minervini's routines are driven by a "bottoms-
up" approach, where he screens individual stocks to gauge the market's overall health, rather than solely
4
relying on indices. He categorizes stocks into "Buy Alert," "High On Deck," and "Watchlist" based on their
4
price action and setup quality. This daily analysis of individual stock movement dictates his level of
4
aggressiveness for the next trading session. He emphasizes that a trader's actual results encompass not
only their strategy but also the "faults, abnormalities, and emotions" that often override even the best-laid
10
plans.
● Controlling Aggregate Risk and Navigating Drawdown: Minervini tracks key performance metrics such as
58
win rate, expected risk-to-reward ratio, actual gain vs. loss, and length of time in winners vs. losers. He
advises keeping maximum portfolio drawdown below 20-30% to protect capital and facilitate quicker
58
recovery from rough patches. If drawdown becomes too large, he recommends smaller position sizes and
58
greater diversification.
● Strategies for Reducing Exposure, Raising Cash, or Avoiding Specific Market Environments:
○ Progressive Exposure: This is a core strategy for dynamic risk management. In favorable market
 conditions, exposure is increased; in unclear conditions, smaller positions are taken; and in unfavorable
51
conditions, no risk is taken, leading to 100% cash.
○ Market Sentiment and Breakout Success: He leans bullish when many stocks are setting up and
breaking out, and stays bullish as they make new highs. Conversely, he leans bearish when few stocks are
4
setting up and stays bearish when breakouts fail and stocks make new lows.
○ Avoiding Volatile/Choppy Markets: Minervini avoids trading in highly volatile or choppy markets,
50
recognizing that such environments increase whipsaws and make consistent returns difficult. He will
59
stay small and mostly in cash when individual stocks are "whipping all over the place".
○ Market Theme Recognition: He identifies prevailing market themes, such as the "Pop And Drop" theme
in 2021, where breakouts would quickly fail. This recognition informs his decision to take quicker profits
4
and reduce exposure.
○ Market Breadth Observations: While not explicitly detailed with precise metrics in all provided snippets,
Minervini assesses various indicators to gauge market strength and health, including market breadth,
24
leading sectors, and the performance of major indices. He looks for divergences between the Advance-
60
Decline Ratio and market indices as potential reversal signals. He also observes new highs and lows,
noting that too many new highs can indicate an overbought market, while too few can signal an oversold
6
condition. This holistic view helps him make informed decisions about trade management and overall
24
market exposure.

3.4. Philosophy on Losses and Winners: The Core Tenets

Minervini's immutable philosophy is encapsulated in the principle of "cutting losses swiftly and allowing winners to
62
run". This core tenet is fundamental to his long-term success and capital compounding.

● Cutting Losses Swiftly:

○ Risk-First Imperative: Every trade begins with a "risk-first" mentality, evaluating potential losses before
10
considering gains. He predefines an exact exit price (stop-loss) and exits "without question" if it's
10
triggered.
○ Accepting Small Losses: He stresses the absolute necessity of accepting small losses (average 4-5%,
10
maximum 10%) to prevent them from escalating into large, account-damaging losses. He argues that
63
"not losing big is the single most important factor for winning big".
10
○ No Emotional Stops: He warns against "emotional stops" that lead to larger losses due to ego or hope.
○ Market is Always Right: The market is never wrong; only the trader can be. Accepting this truth is crucial
10
for cutting losses without hesitation.
○ Never Double Down: He strictly adheres to the old-school wisdom of never "averaging down" on a losing
20
trade, instead advocating for "averaging up" on winners.
○ The "50/80 Rule": He highlights that once a stock establishes a major top, there's a 50% chance it will
fall by 80% and an 80% chance it will fall by 50%. This underscores the urgency of limiting losses while
10
they are small.
● Allowing Winners to Run:
○ Maximizing Potential Gains: While aggressive in profit-taking, he aims to maximize potential gains by
10
allowing winning trades to develop.
 ○ Selling into Strength: He practices "selling into strength," consistently liquidating portions of positions
4
as the stock makes new highs. This ensures profits are realized and compounded, even if it means
12
foregoing some potential upside.
○ Protecting Gains: He never allows a stock that has risen to a multiple of his stop-loss and is above his
10 13
average gain to turn into a loss. He moves stops to breakeven or trails them to protect profits.
○ Don't Let Big Gains Turn into Small Losses: He cautions against holding a profitable stock until it slips
20
into negative territory, advising to take gains when the opportunity arises.
● Empirical Examples or Hypothetical Scenarios Illustrating the Power of This Principle:
○ Asymmetric Risk-Reward Ratio: Minervini considers the risk-reward ratio arguably the most important
20
statistic. He consistently aims for a minimum 2:1 risk-to-reward ratio, meaning he risks $1 to make $2.
■ Coin Toss Example: He illustrates this with a coin toss: if heads pays 10 cents and tails loses 5 cents
(a 2:1 ratio), one would want to toss the coin as much as possible, even with a 50% win rate. This
demonstrates how a positive expectancy (Average Gain * Win Rate - Average Loss * Loss Rate) leads
22
to long-term profitability. Conversely, risking 10% to win 5% with a 50% win rate would lead to
22
significant capital depletion.
○ "Batting Average" Analogy: He uses a baseball analogy: a high "failure rate" (e.g., losing 4 out of 5
trades) is acceptable if the single winning trade yields a significantly higher return (e.g., 5 units gained for
every 1 unit lost). This highlights that a few large winners can more than compensate for numerous small
22
losses.
○ Bell Curve Distribution of Results: Minervini advocates for plotting trading results into a bell curve. The
optimal distribution shows a "short, low number of entries" on the left side (losses) and a "long, numerous
entries" on the right side (wins). This visually confirms that the strategy is effectively cutting losers short
22
and allowing winners to run, which is the optimal approach for compounding capital.
○ Real-World Illustrative Scenarios: While specific individual trade examples with full profit/loss figures
are not extensively detailed in the provided snippets, the success of his VCP strategy implicitly
demonstrates this. For instance, stocks breaking out of VCP patterns have seen significant price
22
increases, such as Netflix's 525% increase in 21 months after forming a VCP following its 2008 lows.
This illustrates allowing winners to run.
○ Compounding Small, Consistent Returns: Minervini emphasizes that "Superperformance" is achieved
not necessarily by swinging for massive individual returns, but by consistently compounding smaller, more
frequent wins. He notes that finding 12 stocks each returning 10% (compounding to 214%) can be more
22
productive than two 40% returns (compounding to 96%). This underscores the power of disciplined loss
control and consistent profit realization in achieving exponential capital growth.

The core principle of cutting small losses and letting large winners run creates a positive expectancy, which is the
mathematical engine of compounding returns. This approach systematically ensures that the cumulative impact of
profitable trades outweighs the inevitable small losses, leading to exponential capital growth over time, even with
a moderate win rate.

Conclusions
Mark Minervini's trading methodology represents a highly refined and systematically applied approach to
achieving "Superperformance" in the stock market. The forensic investigation into his strategies reveals a
profound integration of rigorous fundamental and technical analysis, meticulously structured within his
trademarked Specific Entry Point Analysis (SEPA) framework.
The cornerstone of Minervini's success is his unwavering "risk-first" philosophy. This is not merely a technical
guideline but a deeply ingrained psychological discipline that actively counteracts inherent human biases. By
mandating precise, low-risk entry points and an absolute, unemotional adherence to predefined stop-losses, he
ensures that capital preservation is paramount. This proactive risk mitigation, embedded at the very inception of
each trade, allows for optimal position sizing and limits the impact of inevitable losing trades.

His stock selection is a surgical process, combining stringent fundamental prerequisites (strong, accelerating
earnings and sales growth, healthy margins, and institutional ownership) with a multi-factor technical confluence.
The Volatility Contraction Pattern (VCP) serves as a critical indicator of supply-demand imbalance, signaling high-
probability breakouts. This is complemented by a rigorous Trend Template, which ensures alignment with
prevailing market trends and sectoral leadership, providing a powerful tailwind for identified opportunities.

Minervini's aggressive exit strategy is characterized by a dynamic approach to profit realization—selling into
strength and taking partial profits at predetermined targets—while maintaining a static, uncompromising stance
on loss-cutting. This dichotomy ensures that gains are consistently realized and compounded, prioritizing tangible
returns over speculative maximums. The consistent application of a favorable risk-reward ratio, as illustrated by
his 2:1 target, is the mathematical engine that drives compounding returns, allowing a few large winners to offset
numerous small losses.

Ultimately, Minervini's unparalleled track record is a testament to the power of a disciplined, systematic, and
adaptive trading system. His emphasis on continuous learning, objective decision-making, and the cultivation of a
winning mindset underscores that trading mastery is a learned skill, built upon meticulous preparation, unwavering
adherence to rules, and the profound psychological fortitude to manage both triumphs and setbacks with
equanimity. His methodologies provide a comprehensive blueprint for traders seeking to move beyond
conventional returns and achieve sustained, exceptional performance in the financial markets.

Works cited

1. Master the Stock Market with Mark Minervini's Trading Strategy - Toolify.ai,
accessed May 31, 2025, https://www.toolify.ai/ai-news/master-the-stock-
market-with-mark-minervinis-trading-strategy-352143
2. Mark Minervini: books, biography, latest update - Amazon.com, accessed May 31,
2025, https://www.amazon.com/stores/author/B00BN1X6RY
3. 99% of the 'biggest winning stocks' share this criteria, says investing legend Mark
Minervini, accessed May 31, 2025,
https://www.morningstar.com/news/marketwatch/20250420137/99-of-the-
biggest-winning-stocks-share-this-criteria-says-investing-legend-mark-
minervini
4. Mark Minervini's Risk Management Wins The 2021 U.S. Investing ..., accessed May
31, 2025, https://traderlion.com/investing-champions/mark-minervinis-risk-
management/
5. Book of the Month Club - February - Trade Like a Stock Market Wizard by Mark
Minervini, accessed May 31, 2025,
https://www.reddit.com/r/swingtrading/comments/1agiuue/book_of_the_month_
club_february_trade_like_a/
6. Read Trade like a stock market wizard by Mark Minervini Book Summary |
Elearnmarkets, accessed May 31, 2025,
 https://www.elearnmarkets.com/school/units/trade-like-a-stock-market-
wizard/an-introduction-worth-reading
7. The Holy-Grail In Investing- Mark Minervini Trend Mode!, accessed May 31, 2025,
https://www.marketsmith.hk/v2/blog/the-holy-grail-in-investing-mark-minervini-
trend-mode?lang=en
8. Decoding the SEPA ® Method: Mastering Minervini's Approach for ..., accessed
May 31, 2025, https://www.tradingview.com/chart/COIN/29lCIlH7-Decoding-the-
SEPA-Method-Mastering-Minervini-s-Approach/
9. Think & Trade Like a Champion Book Summary by Mark Minervini - Shortform,
accessed May 31, 2025, https://www.shortform.com/summary/think-trade-like-a-
champion-summary-mark-minervini
10. Read Think and Trade Like a Champion Book Summary | Elearnmarkets, accessed
May 31, 2025, https://www.elearnmarkets.com/school/units/think-and-trade-like-
a-champion
11. How To Invest Like Mark Minervini - Momentum Trading Champion, accessed
May 31, 2025, https://pictureperfectportfolios.com/how-to-invest-like-mark-
minervini-momentum-trading-champion/
12. Mark Minervini Interview | PDF | Stocks | Investor - Scribd, accessed May 31, 2025,
https://www.scribd.com/document/403053660/Mark-Minervini-Interview
13. Minervini Trend Template (EMA) — Indicator by ShankarReddy ..., accessed May
31, 2025, https://www.tradingview.com/script/OXLVw8Bx-Minervini-Trend-
Template-EMA/
14. Mark Minervini's Cheat Entries: Getting In Before the Breakout | ChartMill.com,
accessed May 31, 2025, https://www.chartmill.com/documentation/stock-
screener/technical-analysis-trading-strategies/502-Mark-Minervinis-Cheat-
Entries-Getting-In-Before-the-Breakout
15. How Mark Minervini Screens For Winning Stocks | Deepvue, accessed May 31,
2025, https://deepvue.com/screener/how-mark-minervini-screens-for-stocks/
16. Mark Minervini's Trend Template: A Step-by-Step Guide for Beginners |
ChartMill.com, accessed May 31, 2025,
https://www.chartmill.com/documentation/stock-screener/technical-analysis-
trading-strategies/496-Mark-Minervini-Trend-Template-A-Step-by-Step-Guide-
for-Beginners
17. 175 trading wisdom points | PDF | Risk | Margin (Finance) - Scribd, accessed May
31, 2025, https://www.scribd.com/document/860180398/175-trading-wisdom-
points
18. 8 Must-Know Tips for Day Traders in 2025 - ChartsWatcher, accessed May 31,
2025, https://chartswatcher.com/pages/blog/8-must-know-tips-for-day-
traders-in-2025
19. Profitable Trading Strategy: Master the Volatility Contraction Pattern (VCP)
Minervini's Favourite. - YouTube, accessed May 31, 2025,
https://www.youtube.com/watch?v=I8Usc5lza_Y&pp=0gcJCdgAo7VqN5tD
20. Is Mark Minervini The Best Trader? - Financhill, accessed May 31, 2025,
 https://financhill.com/blog/investing/is-mark-minervini-the-best-trader
21. Quote by Mark Minervini: “in a difficult market environment, profits will...” -
Goodreads, accessed May 31, 2025,
https://www.goodreads.com/quotes/9696779-in-a-difficult-market-
environment-profits-will-be-smaller-than
22. Mark Minervini Trade & Think Like a Champion - Financial Wisdom TV, accessed
May 31, 2025, https://www.financialwisdomtv.com/post/mark-minervini-trade-
think-like-a-champion
23. Mark Minervini Strategy | Think and Trade Like a Champion Part 1 | Technical and
Fundamental Filters, accessed May 31, 2025,
https://www.chartmill.com/documentation/stock-screener/fundamental-
analysis-investing-strategies/464-Mark-Minervini-Strategy-Think-and-Trade-
Like-a-Champion-Part-1
24. Minervini's Trade Management and Exit Strategies for NASDAQ:QQQ by
JS_TechTrading - TradingView, accessed May 31, 2025,
https://www.tradingview.com/chart/QQQ/l0zbxMjD-Minervini-s-Trade-
Management-and-Exit-Strategies/
25. 99% of the 'Biggest Winning Stocks' Share This Criteria, Says Investing Legend
Mark Minervini - Moomoo, accessed May 31, 2025,
https://www.moomoo.com/news/post/51836431/99-of-the-biggest-winning-
stocks-share-this-criteria-says
26. Mastering The Volatility Contraction Pattern - TraderLion, accessed May 31, 2025,
https://traderlion.com/technical-analysis/volatility-contraction-pattern/
27. Mark Minervini Setup - Stocks - Scribd, accessed May 31, 2025,
https://www.scribd.com/document/517206546/425224715-Mark-Minervini-Setup
28. Confirming Chart Patterns Through Volume Analysis for AMEX:SPY by
JS_TechTrading - TradingView, accessed May 31, 2025,
https://www.tradingview.com/chart/SPY/6Ou5dVSm-Confirming-Chart-
Patterns-Through-Volume-Analysis/
29. Profitable Trading Strategy: Master the Volatility Contraction Pattern (VCP),
accessed May 31, 2025, https://www.financialwisdomtv.com/post/profitable-
trading-strategy-master-the-volatility-contraction-pattern-vcp
30. Mark Minervini Strategy | Think and Trade Like a Champion Part 2 - ChartMill.com,
accessed May 31, 2025, https://www.chartmill.com/documentation/stock-
screener/fundamental-analysis-investing-strategies/465-Mark-Minervini-
Strategy-Think-and-Trade-Like-a-Champion-Trading-Strategy
31. Vibha Jha's Million Dollar TQQQ Trading Strategy - TraderLion, accessed May 31,
2025, https://traderlion.com/investing-champions/vibha-jha-tqqq/
32. Applying Mark Minervini's growth stock checklist to TG ..., accessed May 31, 2025,
https://www.chartmill.com/news/TGTX/Chartmill-28193-Applying-Mark-
Minervinis-growth-stock-checklist-to-TG-THERAPEUTICS-INC-NASDAQTGTX
33. Why Mark Minervini may look into GOLD FIELDS LTD-SPONS ADR ..., accessed
May 31, 2025, https://www.chartmill.com/news/GFI/Chartmill-27876-Why-Mark-
 Minervini-may-look-into-GOLD-FIELDS-LTD-SPONS-ADR-NYSEGFI
34. Understanding High Relative strength Stock Trading Method: Insights by Mark
Minervini and IBD In the world of stock trading, finding effective strategies to
identify high-potential stocks is crucial for success. Two prominent approaches
that have ga - Epic Prop Trading - Quora, accessed May 31, 2025,
https://epicproptrading.quora.com/Understanding-High-Relative-strength-
Stock-Trading-Method-Insights-by-Mark-Minervini-and-IBD-In-the-world-of-
stock-tra
35. IBD Style Relative Strength Rating — Indicator by NNenov ..., accessed May 31,
2025, https://www.tradingview.com/script/bvUsKJ2E-IBD-Style-Relative-
Strength-Rating/
36. IBD Style Relative Strength Rating — NNenov 的指標 - TradingView, accessed May
31, 2025, https://tw.tradingview.com/script/bvUsKJ2E-IBD-Style-Relative-
Strength-Rating/
37. The Secret Formula Behind 99% of the Market's Biggest Winners: Mark Minervini's
Trend Template Decoded - AInvest, accessed May 31, 2025,
https://www.ainvest.com/news/secret-formula-99-market-biggest-winners-
mark-minervini-trend-template-decoded-2504/
38. Minervini's Specific Exit Criteria for NASDAQ:COIN by JS_TechTrading -
TradingView, accessed May 31, 2025,
https://www.tradingview.com/chart/COIN/dRQXnzm3-Minervini-s-Specific-Exit-
Criteria/
39. Mark Minervini Interview - How to trade like a champion - Stockopedia, accessed
May 31, 2025, https://www.stockopedia.com/blog/mark-minervini-interview-
how-to-trade-like-a-champion-353963/
40. Mark Minervini explains his ANF trade and how he interpreted price and volume. -
YouTube, accessed May 31, 2025, https://www.youtube.com/watch?
v=VXM0QbEgziE
41. SEA LTD-ADR (NYSE:SE) – A Strong Growth Stock Meeting Minervini's Trend
Template, accessed May 31, 2025, https://www.chartmill.com/news/SE/Chartmill-
29495-SEA-LTD-ADR-NYSESE-A-Strong-Growth-Stock-Meeting-Minervinis-
Trend-Template
42. High Tight Flag Pattern; How to Profit from this Explosive Breakout Setup? -
ChartMill.com, accessed May 31, 2025,
https://www.chartmill.com/documentation/technical-analysis/chart-patterns/
466-High-Tight-Flag-Pattern
43. Volatility Contraction Pattern (VCP) | PDF | Business | Financial Economics -
Scribd, accessed May 31, 2025,
https://www.scribd.com/document/654472847/Volatility-Contraction-Pattern-
VCP
44. The Volatility Contraction Pattern (VCP): How To Day Trade With It - Tradingsim,
accessed May 31, 2025, https://app.tradingsim.com/blog/volatility-contraction-
pattern/
45. Mark Minervini + Pocket Pivot Breakout — Indicator by roshankumarstocks -
TradingView, accessed May 31, 2025,
https://in.tradingview.com/script/UnsW5J86-Mark-Minervini-Pocket-Pivot-
Breakout/
46. Minervini — Indicadores e Estratégias - TradingView, accessed May 31, 2025,
https://br.tradingview.com/scripts/minervini/
47. Minervini — 指標和策略 - TradingView, accessed May 31, 2025,
https://tw.tradingview.com/scripts/minervini/
48. Minervini — Penunjuk dan Strategi - TradingView, accessed May 31, 2025,
https://my.tradingview.com/scripts/minervini/
49. Page 3 | Stochastic RSI (STOCH RSI) — Indicators and Strategies - TradingView,
accessed May 31, 2025, https://www.tradingview.com/scripts/stochasticrsi/page-
3/
50. MACD INDICATOR EXPLAINED (Trade with the trend) - YouTube, accessed May
31, 2025, https://www.youtube.com/watch?
v=W78Xg_pnJ1A&pp=0gcJCdgAo7VqN5tD
51. HOW-TO: Minervini Pullback Strategy for BITSTAMP:BTCUSD by JS_TechTrading,
accessed May 31, 2025, https://www.tradingview.com/chart/BTCUSD/edio6LBV-
HOW-TO-Minervini-Pullback-Strategy/
52. Position Sizing Feature - First in the Industry - Definedge Securities, accessed
May 31, 2025, https://www.definedgesecurities.com/blog/products/position-
sizing-strategy-a-groundbreaking-innovation/
53. Mark Minervini's #1 Risk Management Secret to Grow Your Trading ..., accessed
May 31, 2025, https://lilys.ai/notes/157072
54. Mastering Market Dynamics: The Benefits of Progressive Exposure -
ChartMill.com, accessed May 31, 2025,
https://www.chartmill.com/documentation/trading-and-investing/money-and-
risk-management/473-Mastering-Market-Dynamics-The-Benefits-of-
Progressive-Exposure
55. Mark Minervini On Investing During A Market Correction And What To Look For
Next | Alissa Coram - YouTube, accessed May 31, 2025,
https://www.youtube.com/watch?v=I1iyyit_SiU
56. Mark Minervini's Position Management Strategies | IBD Live | Alissa Coram -
YouTube, accessed May 31, 2025, https://www.youtube.com/watch?
v=o5AYmD7jN3g
57. Mark Minervini On Scaling Into Positions & Position Sizing | IBD Live - YouTube,
accessed May 31, 2025, https://m.youtube.com/watch?
v=X8fHoK0U4so&pp=ygUQI2JyYWNrcG9zdGlvbmluZw%3D%3D
58. Tracking Your Trading Stats Is a Game-Changer for Investors - TheStreet Pro,
accessed May 31, 2025, https://pro.thestreet.com/investing/tracking-your-
trading-stats-is-a-game-changer-for-investors
59. How Mark Minervini Uses Discipline To Navigate A 'Hard Penny ..., accessed May
31, 2025, https://www.youtube.com/watch?v=wXHHPfF15-w
60. Advance-Decline Ratio: An Indicator for Trend Analysis - Definedge Securities,
accessed May 31, 2025,
https://www.definedgesecurities.com/blog/education/advance-decline-ratio-an-
indicator-for-trend-analysis/
61. Are We Headed For A Market Collapse? (Market Breadth Warning!) - YouTube,
accessed May 31, 2025, https://www.youtube.com/watch?v=DMFXYRYtqLs
62. Mark Minervini: Master of Trend Following and Risk Management ..., accessed
May 31, 2025, https://in.tradingview.com/chart/NIFTY/SrRbqf2Q-Mark-Minervini-
Master-of-Trend-Following-and-Risk-Management/
63. Think & Trade Like a Champion: The Secrets, Rules & Blunt Truths of a Stock
Market Wizard: Mark Minervini - Amazon.com, accessed May 31, 2025,
https://www.amazon.com/Think-Trade-Like-Champion-Secrets/dp/0996307931