The core of achieving superperformance begins with identifying stocks already in a powerful uptrend. Minervini’s "Trend Template" requires that a stock’s price be above both its 150-day and 200-day moving averages, and that the 200-day average itself be trending upward. By filtering for stocks that are already winning, a trader avoids the "value trap" of buying cheap stocks that continue to fall, ensuring they only put capital to work in names with existing momentum. The SEPA Strategy
Entry Points: Using the Volatility Contraction Pattern (VCP) to find low-risk, high-reward "pivot points" for buying. Only trade when: The S&P 500 is above
Top-Performing Investors Share Their Secrets low-volume rally attempts
6. The Psychology of the Wizard
Minervini emphasizes that trading is 80% psychological and 20% technical. stop all new buys.
Ready to begin? Open your charts. Find the stocks with the tightest VCPs. Set your stop loss. And execute with the cold, mechanical precision of a market wizard.
- Only trade when: The S&P 500 is above its 150-day & 200-day MAs, and the 50-day MA is rising.
- When to sit in cash: Index below 150-day MA; low-volume rally attempts; more down days than up days.
- Your leading indicator: The percentage of stocks above their 50-day MA. If <30%, stop all new buys.
