Last Updated on 18 October, 2021 by Samuelsson
Mark Minervini is an acclaimed author, technical analyst, instructor, independent trader, and the Founder of Quantech Fund, LP. He has more than three decades of experience in finance and was featured in Jack Schwager’s Stock Market Wizards; conversations with American top stock traders.
Mark’s interest in the stock started in the early ‘80s when he was a teenager. His early attempt soon grew into a full-time obsession. He sold his studio and used the proceeds to fund his trading account.
He lost everything in the beginning — a bitter experience for him. But he realized that his worst mistake had been depending on other people for tips, so he decided to learn it his own way by self-education and research.
He bought his first stock — Allis Chalmer, a seller of tractors and forklifts in 1993. Afterward, Mark became familiar with the works of Richard Love, the author of super performance. His professional and philosophical perspectives on investments together with the creation of his investment strategy was greatly influenced by Richard’s book.
After almost a decade of research and market experienced, he developed a well-defined trading strategy. By mid-1994, Mark converged all his accounts into a single account that became his track record. (Initially, he had several accounts, which he used to test and compare different strategies).
Mark’s performance (after he developed his trading strategy) improved dramatically, with a record 220% annual compounded return for five consecutive years.
He finished first in the 1997 U.S. Investing Championship with a 155% return. He achieved all these gains by keeping risk low — he had only lost a fraction of 1% of his account. His worst year saw a return of 128% gain — a gain that most money managers and traders would be delighted to have as their best.
He usually held his trade for a long time and normally bought when he thought the price would rally within an hour or a day at most. Also, he avoided low-priced stocks — stocks that are low are usually low for a reason. He tends to prefer stocks that are trading at $20 or higher; he never bought a stock that is under $12.
His basic trading philosophy is, “expose your portfolio to the best stocks the market has to offer and cut your losses very quickly when wrong.” This philosophy best described his strategy. He went further and said many investors missed out on good stocks because they limited their selections to stocks with low P/E ratios. Unfortunately, avoiding stocks because the P/E ratio seems too high will result in missing out on some of the best growth stocks, which are actually the stocks that move the market.
Mark spends his days managing money and his nights analyzing companies’ fundamentals on his computer. His main reason for trading was to simply support himself financially from his profits, but his precise trading strategy increased his wealth exponentially each year. He currently runs an educational website and forum where he shares his knowledge with other traders and analysts.
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