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. 

Buy it Here

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. 

Buy it Here