154 of 174 people found the following review helpful
on April 19, 2013
On November 20, 2012 on Twitter Mark Minervini responded to some guy aksing what does he share in his book. Mark's reply was: "I threw everything but the kitchen sink in it."
I've followed Minervini very closely for about 3 years on Twitter and his blog. I've read virtually everything that has been ever published about him. I analyzed his trades and market calls that he published on Twitter and in interviews. And I can assure you that he did not share "everything" with us in his book.
I won't discuss book contents into details as many other reviewers have done so. The most important part that is missing are the exact buy and sell points. Minervini spend a lot of time discussing how to find a stock to buy, fundamentally and technically. All credits to Mark for that. These chapters are as complete as they can be. But every trader that has been around for some time knows very well that the difficult part is not how to find a stock. After a year or two of studying markets we all become a pretty good stock pickers. The difficult part is how to enter a trade at exactly the right time and when exactly to sell it, not to let profits evaporate and at the same time not to sell to soon. There is not a single one intraday chart in the whole book. I strongly doubt that Mark buys off daily charts as you would probably conclude. Selling techniques described are scarce. Besides, I'd like to read much more about specific money management techinques that he uses. Also, Mark is known to emphasize the importance of determining market direction. Way, way, way too little said about that in the book.
In short, I think this book is more of a marketing attempt to promote himself and his paid service. That's why it is so cheap. I expected a price at least ten times higher, but now I see why he made it accessible for anyone. Novices will probably get excited (they buy stock picking services), but experienced traders will know that some major parts are missing. Book is full of stories, anecdotes and metaphores and very fun to read, but please don't expect that you will make any money by using exactly the method described in the book. Or rather try and you will soon realize that the real secrets to Mark's success were still kept secretes.
And one final note. We should probably disregard Mark's 1995 to 2000 performance. I think it is completely irrelevant for current market conditions. I would very much like to see his performance after internet bubble. The same applies for all other market wizards like Gil Morales, Chris Cacher, Dan Zanger and others who got rich (and famous) during the internet bubble era.
81 of 96 people found the following review helpful
on April 16, 2013
I have been trading for a long time. I am always wondering how come all the trading books in Amazon can get glowing reviews. Did every author call up their buddies and let them pump up the book?
Mr. Minervini's canslim variety worked in 1999. After that, the market changed significantly. Sure, 2003 bull market and 2007 bull market worked with his methodology, if you caught those true market leaders, but it is far far far from effective like it used to be.
O'Neil boys, like david Ryan, Mark Minervini, and later ones like Gil Morales have performed much less stellar now than their 1999 period. Those returns are just some past glory. For one, Gil Morales had 18000% compounding returns in the raging bull market of 1995-99, but in raging bull market of 2009 had a 72% draw down. The answer? the market has changed.
If you are REALLY honest and you REALLY want to figure out what is going on, read the original Market Wizard interview of Minervini, and you will find out that during that interview, Minervini DID NOT want to tell any details about his methodology, and he tried hard to HIDE the way how he trade, and he even forced the author to turn off the tape recorder before he explained his methodology. Read it, his behavior during the interview was clearly documented.
You do not need to be a genius to know that the one who knows how to make money will NEVER tell his methodology to invite competition. That is exactly what Minervini did at that time. But now, don't to think it is funny and strange that Minervini suddenly become so "generous" and wants to share his methodology to "help" you make money?
Another thing that so many people failed to mention in their glowing review of this book, is trend following and canslim methodology require you to have a type of psychology that "knows" how to sit, and how to avoid shakeout, and if you get shakeout how to buy back... Minvervini failed to mention those things on how to handle a true market winner in his book (he did talked a little about buyback after initial shakeout, but not how to handle violent shakeout during stock's upward zoom), but those are the key things to make big money.
Believe me, how to handling a winning stock right is far more critical than how to buy the stock. That is exactly how Minervini made his money, but how come such a generous person rarely mention those things in his book?
Trading methodology is never the key to trading success. Your tradng psychology and portfolio management are far more important. Even if the trading methodology is great, you have to know if the methodology match your personal psychology make up. Unfortunately, Minervini seldom mention those things in his book, either.
so much about this "must have" and "must read" book in your trading library!
I welcome Mr. minervini response to my comments, especially now the market is in correction, 4/16/2013.
23 of 28 people found the following review helpful
on April 3, 2013
This is a great book. It is an absolute steal for $13. I would pay ten times that amount for this book. Minervini's system is very similar to CANSLIM. Minervini spends the first part of his book discussing some misconceptions that many investors believe such as overvaluing the importance of PE and buying stocks because they appear cheap. In the next section he discusses the fundamental traits of big winners, such as the need for EPS and sales growth. Chapters 9 and 10 are an absolute gold mine. In chapter 9, Mark discusses how to find market leaders and in chapter 10 he discusses pivot points and how to enter the stock at the right time. If you've read How to make money in stocks, you will recognize the cup and handle and Flag patterns. However, Mark spends time on discussing how to know if the cup and handle is valid and reliable. In addition, he also discusses the 3C cup cheat which is a way to enter a cup and handle pattern prior to the traditional Oneil pivot point. Moreover, I really liked that Mark spent time discuss what to do if a breakout fails and how to know if a stock is acting healthy (he calls it a tennis ball) or poorly (an egg) after the breakout. I highly recommend this book to anyone who enjoyed reading How to make money in stocks. I found it to be the perfect addition to Oneil's book. This is truly a classic, I would put it up with Stan Weinstein's book, Reminisces of a Stock Operator, Darvas' book, the Market Wizards, and of course How to Make Money in Stocks. I actually got this book at 3pm yesterday. A day later, I'm already up to page 257. This is a must read for any stock market junkie.
10 of 12 people found the following review helpful
on April 17, 2013
As a past subscriber to Minervini's trading service, I was anxious for this book to be released. I found the book overall very good and better than most, but at certain parts the book lacked in details which could have made the book a stock trading classic.
For example, he recounts his winning the U.S. Investing Championship, but fails to describe how he, in the final quarter, pulled away from the competition to get astounding results during a market correction. How did he do it? Did he short? Did he go to cash while others continued to trade and get burned? No clue is given. He mentions in one chapter how you have to let the stock breathe and correct when it goes up and down (with no details or percents given) but then in another chapter he writes about cutting your losses quick. Which is it? I felt he didn't explain how he handles a stock that takes off and how to hold it for the amount of months it takes to become a superperformer. Also, I found the Volatility Contraction Pattern a little arbitrary at times in his examples. And, as a past subscriber at his website service, he doesn't go into much detail at all in the book to get hints as to what condition the market could be in as much as he does on his website. And not much advice is given on a trading strategy during a bear market despite the book's title. Overall, I wish he could have been a little more specific and not so general.
Despite these complaints, there are many, many positives, more than I could go into here. Minervini writes in a very easy flowing style that is easy to comprehend (especially for a relative newbie as myself). His trading psychology is up front and foremost as he recounts many of his mentors' wisdom (especially Jessse Livermore). He makes a strong argument why P/E ratios are not so important in stock trading. His writing on IPOs was very helpful. Minervini is honest and admits his losses and mistakes he made in the long road to seeking eventual consistent profitability. He stresses the importance of using both technical and fundamental information. He points out the importance of dedicating time and hard work to make oneself a profitable trader.
I liked the book very much, so I'm glad I purchased it, but I would have to recommend O'Neil's "How to Make Money in Stocks" as a more specific/detailed source of trading information for a novice investor as myself.
7 of 8 people found the following review helpful
on November 3, 2013
Most investment books aren’t worth the paper they’re written on. Authors who have never experienced real investment success espouse the conventional wisdom: index funds, blue chips, buy and hold, etc…
Every once in a while, however, there is a true gem: Reminisces Of A Stock Operator, My Story by Bernard Baruch, How To Make Money In Stocks by William O’Neil, No Bull by Michael Steinhardt, Beat The Street and One Up On Wall Street by Peter Lynch, the Stock Market Wizards series by Jack Schwager. It’s no coincidence that all were written by or about investors with extraordinary track records. How can we expect to learn extraordinary performance except from those who have actually achieved it?
Add another to the list of investment classics: Trade Like A Stock Market Wizard by Mark Minervini. Minervini is one of the greatest independent traders of our generation. Starting with nothing, he made himself a multimillionaire through trading alone by the time he was 34 years old. In a five and a half year period starting in mid-1994, Minervini achieved a 220% annual compounded return, including winning the US Investment Championship in 1997. This is someone whose track record speaks for itself.
More than a decade ago, in an interview with Jack Schwager for one of his Stock Market Wizards books, Minervini summed up his investment philosophy: “My basic philosophy is: Expose your portfolio to the best stocks the market has to offer and cut your losses very quickly when you’re wrong. That one sentence essentially describes my strategy.” Trade Like A Stock Market Wizard is an extended explication of what that actually means.
This isn’t a get rich quick book. Minervini begins by explaining that learning how to trade in the stock market requires a lengthy education. In his case, it took 6 years of losing before he put it all together: “When I began trading in the early 1980s, I endured a six-year period when I didn’t make any money in stocks. In fact, I had a net loss” (pg. 5).
In Chapter 4, “Value Comes At A Price”, Minervini contradicts the conventional wisdom about buying stocks with a low P/E. According to him, in fact, many of the best performing stocks actually sport high P/E ratios: “Most of the best growth stocks seldom trade at a low P/E ratio. In fact, many of the biggest winning stocks in history traded at more than 30 or 40 times earnings before they experienced their largest advance….. The really exciting, fast growing companies with big potential are not going to be found in the bargain bin. You don’t find top notch merchandise at the dollar store” (pg. 44). Summing up, Minervini concludes: “My suggestion is to forget this metric [P/E ratio] and seek out companies with the greatest potential for earnings growth” (pg. 54).
In Chapter 5, “Trading With The Trend”, Minervini hammers home the primary role technicals play in his stock selection: “When I am screening for superperformance stocks, my initial filter is rooted in strict qualifying criteria that are based purely on a stock’s technical action and is designed to align my purchase with the prevailing primary trend…. Simply put, no matter how good a company looks fundamentally, certain technical standards must be met for it to qualify as a buy candidate” (pg. 63). Amplifying this point later in the chapter he writes: “To compound your capital rapidly, you must be where the action is; you can’t afford to have your money tied up in a stock waiting for what you think is a great fundamental story to get noticed by the rest of the world” (pg. 83).
It’s worth pointing out that this runs contrary to the practice of many great value investors who seek out stocks that are undervalued and misunderstood by the market. They get in early and make their money when the market comes around to their point of view. Unlike Minervini, they are willing to wait when they have conviction in their fundamental analysis.
In Chapter 7, “Fundamentals To Focus On”, Minervini tells you what he’s looking for fundamentally: “[Superperformance stocks] are going strong because of a powerful force behind them: growth – real growth – in earnings and sales” (pg. 118). Later in the chapter: “Really successful companies generally report earnings increases of 30 to 40 percent or more during their superperformance phase” (pg. 127).
Chapter 9, “Follow The Leaders”, sums up the kind of stocks Minervini likes: “I made 99 percent of my profits in the stock market by trading the leading names” (pg. 161). As far as timing: “More than 90 percent of superperformance stocks emerge from bear markets and general market corrections” (pg. 164). In other words, the big money is made buying the leading stocks that emerge first from nasty bear markets. For example, think about hedge fund manager David Tepper who made billions buying the financials coming out of the 2007-09 bear market.
Trade Like A Stock Market Wizard is a great book by a great trader. For those of us interested in the market, it’s one we can’t afford not to read.
20 of 26 people found the following review helpful
on May 23, 2013
Like so many others, I was eagerly waiting the arrival of this book. Boy, was i disappointed!!! On the cover it says "learn the strategy that made him one of the most successful stock traders...". I kept reading chapter after chapter and only read a bunch of generalizations and no strategy was ever presented in the book. This book might be okay for someone who has no idea what the stock market is about. For anyone else it is a complete waste of time!! You are much better off reading "How to make money in stocks" by William O'Neil.
Minervini doesn't cover any part about how to hold on to a stock and gives no clear exit strategy once you buy a stock. The sad thing is I have spoken to several people who have read the book AND attended his $4k seminar and they all say that the book is way better!! Go figure. This book is nothing more than a cheap ploy by Mr. Minervini to promote his website services (which are ridiculously expensive!! The cheapest is $6K per year and that's if you sign up for a year. Month to month is $12K/year) and his seminar. As another person wrote on here already...."the secrets are kept secret". I hope you are reading this Mr. Minervini....Shame on you for deceiving the public!!!
4 of 4 people found the following review helpful
on April 9, 2014
As most other traders on the globe, I myself have read numerous books on finance and trading in particular. Most of the reputable books written by well known authors in the trading realm. I came across Mark's book because I have subscribed to his tweeter feed. At first I wasn't sure if he was just always promoting his book to compensate from the sales. But I did more research on him and his background. On his website he mentions his annual event that he hosts, and last year he had David Ryan as guest speaker at that event. If you haven't heard of David Ryan, please read Market wizard by Jack Schwager. I said to myself if David Ryan had written a foreword to this book I should at least read it and evaluate it's content. I must say I was very impressed.
Literally, this book may become a classic, he really explains what is vitally important to look for when searching for good companies to trade in. I found that the last two chapters in the book are the most important and he emphasizes on the importance of risk management. He brings clarity on the stop loss rule and the mathematical results if your stock is 10% below your purchase price and you haven't sold it. Mark mentioned in a podcast on @don'ttalkaboutyourstocks, that he had wanted to add chapters based on when to sell to keep most of your gains,but his publisher said it would be too much content. I realized after many of my trades, that the selling part is actually more important than the buying part. Well, he pointed out that if he were to write another book he'll add that in.
For those of you contemplating on purchasing this book, at the price that it sells for it is worth the investment. It will save you the cost of the book and more if you apply his concepts. I would imagine that this book could be good for beginners, but only after you have read William O'Neil's book: How to make money in stocks, first. Basically Mark brings clarity to many of the questions in that book.
Congratulations Mark on a well written book.
28 of 37 people found the following review helpful
on March 29, 2013
This is without a doubt the best book I ever read on stock trading. If you enjoyed the O'Neil book, "How to Make Money in Stocks", then this takes it to the next level of the game. Like O'Neil's book, you have to read Minervini's several times because it's incredibly comprehensive and detailed. The difference is Minervini's book has more actionable advice. It's very specific and "step-by-step". He conveys the lessons perfectly clear. I'm very excited to put Minervini's ideas and methods into my daily routine. I've been waiting for this book for a long time now. I knew it was going to be special when I heard that three-time US Investing Champion, David Ryan, wrote the Forward to the book. But it is far better than I even expected. A great book.
4 of 4 people found the following review helpful
on March 9, 2014
Steve Burns posted on twitter the name of Mark's book. I had read in "Stock Market Wizards" the chapter on Mark and was very interested but had no idea he had written a book. One reviewer, the first here said he didn't tell everything, I disagree wholeheartedly. Its is a book I will reread many times and already have started the second time, there is so much to absorb. My favorite chapters, 12 and 13 are on risk management. I almost think they should have been chapter 1 and 2 they are so striking in the information put forth. . The charts he published in his chapter "A picture is worth a million dollars" not only show charts of stocks that have performed amazingly, but shows his entries, how the stocks earnings have improved as the chart heads higher. Another chapter "Specific Entry Point Analysis" describes the actual system Mark uses that he refined to improve his trading, with the points he still uses to find the very best stocks in the market. Stan Weinstein wrote a great book on trading " Stan Weinstein's Secrets for Profiting in Bull and Bear Markets" which I enjoyed reading, but Mark Minervini's book is far better in my opinion. It is as David Ryan three time U. S. investing champion said "Its is about the most comprehensive work I have ever read on investing in growth stocks." I agree and think you will too. Full disclosure : I do not know Mark Minervini personally, and have never attended any workshop he provides, tho I may in the future.
9 of 11 people found the following review helpful
on April 23, 2013
Must say that I have read many, many books on the stock market, stock market trading and this is the best total package book that money can buy. Marks style of writing as well as how the book is organized helps re-wire your brain to how IT SHOULD be thinking when approaching trading. The beginning of the book is extremely motivational and the ending re-enforces risk/reward like none other. Having traded stocks for 10 years I can say that Mark's style is timeless and the highest Risk/Reward strategy there is. If his track record doesn't prove this I don't know what does. There are a lot of books out there and if you were to buy 1, this is the book. I read a couple of the bad reviews and was puzzled after reading Marks masterpiece. The author of any negative review clearly doesn't understand that the key to making money is HARD WORK and UNDERSTANDING and DISCIPLINE...all of which Mark clearly and eloquently conveys. Do you homework, learn from your mistakes and pay special attention to the points Mark makes and you will be successful. I will be starting the book from page 1 tonight, for the 2nd time. You can spend money and so many different things to help your trading but I will say that the cover price of this book is multiplies beyond any thing you can do for you trading. Thank you Mark for sharing your insight and expertise to the public.