How to Achieve Super Performance in Stocks in Any Market
Trade Like a Stock Market Wizard by Mark Minervini is a comprehensive guide for traders who want to succeed in the stock market.
It outlines Mark's personal trading strategy using technical analysis and provides insight into his mindset and risk management techniques.
You’ve probably encountered the phrase, “buy low, sell high.” If so, you may have thought that 2009 was the chance of a lifetime to snap up shares in then-blue-chip companies like Citigroup, Lehman Brothers, General Motors, and American International Group (AIG) as their prices dipped to historic lows.
But then, it could have also been a sign that the value of those companies was dropping. The financial crisis saw AIG crash from $103 to 33 cents in the span of two years; it was struck from the Dow Jones Industrial Index in September 2008, as was Citigroup in 2009. The price of GM sank 95 percent in 2009, too – a loss that brought it back to its 1933 worth and also warranted its elimination from the Dow Jones Industrial Index.
There’s an important lesson to be learned here: the stock market doesn’t care about pedigree, only track record. The measurement in the marketplace is growth. Don’t let yourself be persuaded into investing in a sinking stock simply because of its name recognition or reputation. In many cases, such stocks belong to the past; the future may belong to companies with names you’ve never encountered.
Ever heard of the cockroach effect? If you live in New York City, you might know that once you see one, it’s game over – there are bound to be others, too. But this principle can be flipped to the positive. If a company’s quarterly earnings are unexpectedly greater than analysts had predicted, there is likely more good news. If a breakout company seems to be on the upswing, it might mean you should pay attention to that industry as a whole.
Such surges of attention and prospective success may lead to an influx of institutional investment in a stock before the actual numbers even come out. This can be a successful earnings-boosting strategy. And if the speculation is well-founded, that probably means the numbers will keep going up the next quarter, too.
Guess what? This contagion effect is just as applicable to less sunny surprises. Companies that fail to meet their estimated profits will often continue to disappoint in the next cycle. So when you’re starting to put together a roster of potential companies to invest in, focus on those that have exceeded their earnings expectations in the last few quarters. To put it simply, avoid those that have a negative mirror effect, and invest in those that have had positive signs of growth.
This might seem like obvious advice. But in the next section, we’ll see why it’s more counterintuitive than you’d think.
Trade Like a Stock Market Wizard (2013) is a guide to the SEPA (Specific Entry Point Analysis) investment methodology. It navigates you through managing risk, maximizing profits, and, most importantly, having faith in your own ability. You don’t have to be a professional to get started in the stock market – in fact, your status as a lay investor might actually be your biggest strength.
Ich bin begeistert. Ich liebe Bücher aber durch zwei kleine Kinder komme ich einfach nicht zum Lesen. Und ja, viele Bücher haben viel bla bla und die Quintessenz ist eigentlich ein Bruchteil.
Genau dafür ist Blinkist total genial! Es wird auf das Wesentliche reduziert, die Blinks sind gut verständlich, gut zusammengefasst und auch hörbar! Das ist super. 80 Euro für ein ganzes Jahr klingt viel, aber dafür unbegrenzt Zugriff auf 3000 Bücher. Und dieses Wissen und die Zeitersparnis ist unbezahlbar.
Extrem empfehlenswert. Statt sinnlos im Facebook zu scrollen höre ich jetzt täglich zwischen 3-4 "Bücher". Bei manchen wird schnelle klar, dass der Kauf unnötig ist, da schon das wichtigste zusammen gefasst wurde..bei anderen macht es Lust doch das Buch selbständig zu lesen. Wirklich toll
Einer der besten, bequemsten und sinnvollsten Apps die auf ein Handy gehören. Jeden morgen 15-20 Minuten für die eigene Weiterbildung/Entwicklung oder Wissen.
Viele tolle Bücher, auf deren Kernaussagen reduziert- präzise und ansprechend zusammengefasst. Endlich habe ich das Gefühl, Zeit für Bücher zu finden, für die ich sonst keine Zeit habe.
Hol dir mit Blinkist die besten Erkenntnisse aus mehr als 7.000 Sachbüchern und Podcasts. In 15 Minuten lesen oder anhören!
Jetzt kostenlos testen
Blink 3 von 12 - Eine kurze Geschichte der Menschheit
von Yuval Noah Harari
