Think and Trade like a Champion

 Name of the Book: - Think and Trade like a Champion

Author: - Mark Minervini

No of Chapters: -11

Number of Pages: - 247

About the Author: -  Mark is one of America's most successful investors who turned his personal trading account into millions, averaging 220 percent per year for more than five consecutive years with only one losing quarter.   

What this book is about: - Book is an excellent read on strategies, discipline and conviction followed by author to achieve super-performance in equity investing in a short period of time. He explained beautifully why every trader must have trading plan before entering into any trade. He also elaborates the importance of contingency plan when the things do not go as per your strategy. He explained the importance of holding the stocks which shows the price action similar to tennis ball and selling the stocks which shows price action similar to eggs. He explained the difference of retail buying and institutional buying by means of charts. The strategy of not selling a stock with strong price action is explained meticulously by means of MVP( Momentum, Volume and Price) behaviour of the stock. He explained various indicators that an investor needs to look in when a stock price falls back after a breakout. The importance of sticking to rules has been very well  explained by the author. He elaborated upon the importance of keeping journal of your trades to know where the things are going wrong and what corrections are required to be applied for better results. He advocated that if a stock price action does not support the earnings, then it should be avoided. Author showed that charts can predict the undergoing technological changes by giving example of chart of Blockbuster and Netflix. He explained the importance of selling into strength over the selling into weakness. 

Some special insights from the book

1.        Never try to average loss making stocks 

2.       Start with small size gains to generate wealth 

3.       Don't force trades, always wait for set up to form

 4.      Never let the good gains of trade to  turn into loss. 

5.       Never fall for a cheap trap

Overall Review: - Book is an excellent collection of strategies that Mark Minervini followed to achieve success in a shorter period of time in equity market. Book provides beautiful insights which charts can tell about the price action behaviour of stock. Excellent and recommended book for every equity market investor. 

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