Stocks must be in a Stage 2 uptrend . Minervini uses a seven-point "Trend Template" to ensure the stock is being accumulated by institutions.
The most profound section of Minervini’s work deals not with charts, but with the mind. Achieving super performance requires the humility to admit you were wrong (by immediately cutting a 7% loss) and the courage to be right. The biggest mistake novices make is "averaging down" on a losing position, a practice Minervini calls "betting on a loser to turn around." This is an ego-driven disaster. The wizard does the opposite: he adds to winning positions (pyramiding) while eliminating losers. Furthermore, he preaches asymmetric position sizing; he does not invest equal amounts in every idea. Instead, he puts more capital into setups that show the tightest VCPs and strongest fundamentals, and less into marginal ones. This active risk management ensures that when a 200% winner arrives, it makes a meaningful difference to the overall portfolio. Stocks must be in a Stage 2 uptrend
Trade Like A Stock Market Wizard teaches you that the market is the ultimate democracy. It does not care about your opinion, your hopes, or your purchase price. It only cares about price and volume. Achieving super performance requires the humility to admit
Hard stops are set at a maximum of 5% to 8% below the purchase price. Furthermore, he preaches asymmetric position sizing; he does
