33,554% Return in 5 years | Trade Like a Stock Market Wizard | Interview with Mark Minervini

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Published 2021-04-25
Welcome back to the Market Chat! In this episode, we have a very special guest: Mark Minervini.

Mark has had a large influence on my trading journey. Two of his books; Think and Trade like a Champion and Trade Like a Stock Market Wizard are in my top 5 and I've gotten the chance to learn from him directly at IBD meetups and his Master Trader Program in 2020.

Over his career Mark has achieved incredible performance including a 5 and a half year period where he achieved an average annual return of 220% for a total of 33,554% Return over 5 years,

In this interview, we cover his background, how he became the trader he is today, the Volatility Contraction Pattern, Determining Pivot Points, How to set and manage Stop Losses, When to sell or take partial profits, and finally risk management.

We also spend the latter half of the interview going through some charts and discussing how Mark interprets Price Action and makes decisions.

Connect with Mark
twitter.com/markminervini
minervini.com/

Marks books + Features -- HIGHLY Recommended --

Trade Like a Stock Market Wizard: amzn.to/3sQmo0n
Think and Trade Like a Champion: amzn.to/32Mwnt2
Mindset Secrets for Success: amzn.to/3ew1bmZ
Momentum Masters: amzn.to/3xk2uy6
Market Wizards- Jack Schwager -amzn.to/3sO7g3p

Other Books Mentioned
How to Trade in Stocks Jesse Livermore amzn.to/3vcNjoo
How To Make Money In Stocks O'Neil amzn.to/3aC3t35

Stay in touch
twitter.com/RichardMoglen
[email protected]
If you would like to support my channel
www.buymeacoffee.com/RichardMoglen

TC2000 Discount Link: www.tc2000.com/pricing/richardmoglen
Marketsmith: marketsmith.investors.com/ms-platform/?src=A00587A…

Timestamps
0:00 Introductions
1:04 Aha Moments That Changed Mark's Trading
2:13 What Historical Traders and Books did Minervini Study
3:20 Rules and Discipline are Essential for Super-Performance
4:04 Its like being a Great Athlete- You have to be focused and Disciplined
4:49 How to structure your goals to achieve Superperformance
5:45 Ed Seykota- Everyone gets what they want out of the market.
6:00 You don't get to be an Olympic Athlete without putting that goal above all else
6:30 The Mark Minervini Volatility Contraction Pattern - VCP
7:33 The VCP is a Characteristic, Its the Effect not the Cause
9:00 VCPs have been occurring since the 1800s, Nothing has changed
9:45 Marks Daily Routine - Mindset and Preparing to Trade
10:08 Breathing Exercises - Visualizing Outcome - How will I deal with it
10:50 All work is done the night before - Ideas, Pivots, Position Management
11:30 Mark's Weekly Routine, Scanning for Ideas
12:24 Non Negotiable Criteria - Minervini Trend Template
12:40 98% of the Greatest Winning stocks were in Stage 2 Uptrends
13:28 Tips for people to Find VCPs - Train your Eye and Build your own Model Books
14:54 Always looking for the Fundamentals But it has to have the technicals
15:54 Does Mark look for Group Moves?
17:09 Golden Nugget - Focus on Stocks then the groups then the market
17:30 Screening for Leaders during a Correction
17:58 High RS, Near Highs, Rebounding the fastest
18:06 Utility Screen
18:50 What is a Pivot point
19:54 Know when something is acting normal or abnormal
21:45 How Mark Uses different timeframes near Pivot points
22:20 Buying Pullbacks - Waiting for the stock to turn up
22:50 Where does Mark Put his Stop Losses - Obvious and Non-Obvious
24:17 How many Stocks does Mark Hold- How does he set Position Sizing
25:55 How does Mark decide when to sell? Adapting to the Market
27:00 Golden Nugget - It does not matter what happens after you sell
28:35 Golden Nugget - When do you sell into strength versus into weakness
32:09 Progressive exposure is a major Key
32:54 How does Mark determine if the Market is Extended
33:40 Momentum trumps Sentiment. It comes down to the individual stocks
34:25 Going through Charts NMM Stock Analysis
35:15 Golden Nugget You want to be knocked out quickly if you are wrong.
36:05 Entering Failure Resets
37:00 Changing Tactics Within an Overall Strategy
38:55 How long does the base- contraction have to be
39:00 Powerplay Setup
40:00 Snap Chart Analysis - RS
43:00 Taking Responsibility for your Trading - Versus Blaming Algos
44:50 Playing a portion for the larger move 50 Day Rule
46:50 BOYD Gaming BYD - Respect for the 10 Week MA
47:50 Good trade or a bad trade. Did you follow your rules?
49:00 How important is Keeping track of your Batting Average, Average Gain, Average Loss.
52:15 How does Mark come back from a big loss or poor trading performance
54:22 How does Mark Know when to Sell into Strength
55:00 What matters is what happens between the buy and the sell.
57:17 What can new traders do to shorten their learning curves.

Disclaimer
The content of this video is for educational purposes only and should not be taken as a suggestion to buy or sell anything

All Comments (21)
  • From someone who's watched literally hundreds of videos by dozens of content makers: this one is not bullshit. Thanks for the great interview.
  • @aberf0yle
    Love how well prepared the interviewer is. Great questions too, and he let's Mark speak to the end without cutting him off. Thank you.
  • @kayz1553
    Would love a VCP masterclass with Mark. 45 mins to an hour of straight up dissecting the VCP and examples.
  • @larz4437
    "Letting the math work its way into your trading" is for me, one of the most important insights I've gained from Minervini over the last few weeks.
  • @NathanFlorence
    Great video, mark is legendary, richard is great at interviewing as well!
  • @ryanl2576
    Mark Minervini helped my trading reach a whole other level.
  • @muzehack
    Glad to hear his confirmation that investing for small gains multiple times a year is the way to make money rather than finding those few stocks that go up 50-100% in a year. I can find stocks that will go up 10% in a few days, weeks or months a lot easier than ones that will go up triple digits in a year or two.
  • After a horrendous 2022, shell-stunned financial backers have misfortunes to recover and a lot to consider, as an expansion report and a pile of different information did close to nothing to change assumptions that the Central bank would probably keep climbing interest rates regardless of whether the economy dials back, And that implies more red ink for portfolios for the principal quarter of year 2023. How might I benefit from the ongoing unstable market, I'm currently at a junction choosing if to exchange my $250k security/stock portfolio
  • An hour passed and I did not even notice. This man is a fountain of knowledge. My God! Thanks Richard for organizing this.
  • @Trendlines_mc
    This is a BIG eye opener for me, a South African development trader... I followed ICT for months and he preached that the market is run by algorithms He also said that Indicators are a distraction and Price Action is King but here I see a Market Wizard using a Indicator and I'm shocked... He also said stuff like focus on one setup a week while you still developing and than tape Read and even when you are profitable aim for 12% a month than chill, OK but I wanna reach a high level ( Yes I want to be rich) and i know 33 000+ return is insane but I want to also be a Market wizard and it felt limiting...
  • @McElvinn
    I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both? However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait but watching my portfolio of $450k dwindle away is such an eye -sore.
  • It's a great time to do trading, it's great time to do anything. You can't force experience. This man is gem.
  • @stevencosta6200
    Amazing interview Richard, as I said earlier on Twitter I couldn’t wait to watch this dream team interview and as usual you never disappoint. You asked Mark all the questions us aspiring market wizards would want to ask him, and had me literally updating some of my own personal buy, sell and position size rules in my binder, lol. Great work and thanks for another incredible interview!
  • @danielkarna
    Whaaaaat?? Interview with Mark Minervini?!! This made my weekend!!
  • @diegoigatrader
    Pure gold! I Appreciate you, Richard, for taking the time to interview traders, and putting this together so that more people can learn from them. Thank you.
  • @Arizstemming
    Best interview/podcast of Mark Minervini that I've watched so far.
  • @blessedpapa
    A valuable interview with Mark! Thank you Richard.
  • Thanks Mark! I’m new to trading and have just finished both your TLSMW and TTLC books, and have collated a ridiculous amount of notes. I’ve set up my trading performance management system entirely on your strategies. Just love the risk management and mathematical approach to trade management. This was such a good interview. Thank you.
  • @dasfahrer8187
    26:00 ... man that info about being nimble and agile with your strategy when the market changes (instead of getting upset that the usual way of doing things isn't working out) was such a critical aha moment for me. That was worth the hour listen alone and this interview was just chock full of them. Side note - I do wish you'd answer just one question at a time tho.