Trade like a Stock Market Wizard

Name of the Book: - Trade like Stock Market Wizard

Author: - Mark Minervini

No of Chapters: -13

Number of Pages: - 319

Single sentence description of Book: - How to achieve maximum performance in Equity markets by combining Technical and Fundamental analysis   

What this book is about: - Book is a good read on various technical analysis methods used by author to achieve super performance in equity investing in a shorter period of time. There are two school of thoughts in equity investing, one is fundamental analysis and other one is technical analysis. Both the methods have some advantages and disadvantages. Author applied methods of technical analysis to fundamentally strong companies. He has explained the price movement of fundamentally strong companies by means of various charts and data patterns. He has explained four stages of stock price movement and provided various indicators for each stage.  He explained why it is necessary to enter the stock at specific entry point to gain maximum profit in a shortest period of time. Author has explained how the price volume chart of any stock can be used to analyse various events happening in the company like revision of earning estimates, institutional buying and many more. Author has explained the importance of relative strength of stock price in case of bear market and explained how the stocks with good relative strength can outperform their peers.  Ample detailed explanation of Volatility contraction pattern is given author by examples of various stock charts which is one of the leading indicators used by many technical analysts these days.  Author has devoted two complete chapters on importance of risk management in equity investment and explained how important is to cut down the losses at early stage of price decline of stock.

Some special insights from the book

1.        Always exit the stock when it is stage 04 in price volume chart.

2.       The stocks which correct less in a meltdown as compared to whole market makes a good case of sharp rebound.

3.       Leave the ego aside in case of failure in identifying the proper price set up and try to re-enter at proper entry point

 4.      Cutting down the losses at early stage is one of the most important thing that traders fails to do.

5.       The only thing a trader can control in every trade is the amount of loss he can bear in each trade, so it is essential to plan stop loss before entering into any trade

6.       Larger the loss, more time and effort it will take to recover.

Overall Review: - Book is an excellent collection of strategies that Mark Minervini followed to achieve super performance in a shorter period of time in equity market. Book provides a combination of fundamental and technical analysis for stock price movement. Excellent and recommended book for every equity market investor. 

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