Only increase your total market exposure when your current trades are working. This "poker-like" strategy ensures you are heaviest in the market when you are most in sync with it.
The final, tightest part of the contraction where volume dries up. This is the low-risk entry point. Risk Management: The Foundation of Superperformance
This involves pinpointing the exact moment smart money acts, often using the Volatility Contraction Pattern (VCP) to find tight consolidations before a breakout. Only increase your total market exposure when your
Look for companies with explosive growth, typically 20% to 25%+ quarterly earnings growth . Accelerating trends and positive earnings surprises are key catalysts.
Determine trade size based on your stop-loss distance to ensure no single failure significantly impacts your account. Decoding the SEPA ® Method: Mastering Minervini's Approach This is the low-risk entry point
The is Minervini’s signature technical tool. It tracks the "quieting" of a stock's price action as supply is absorbed by strong hands.
Trade Like A Stock Market Wizard: How To Achieve Super Performance In Stocks In Any Market Accelerating trends and positive earnings surprises are key
The stock's price swings become progressively smaller (e.g., from a 25% correction to 10%, then 5%).