Book Review: Think & Trade Like a Champion By Mark Minervini

This is such an amazing book.  My favourite quote from the whole thing is “Winning, without a doubt, is a choice!”

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It’s the anti-victimhood mentality of winners, I love it.

My most valuable quotes:

we win when we decide that we’re going to be winners.

Winning, without a doubt, is a choice!

Those who succeed big at anything all have the same attitude: You keep going until it happens or you die trying. Quitting is not an option.

It’s better to do something imperfectly than to do nothing flawlessly.

comfortable equals less and uncomfortable equals more.

victory comes to those who persist, as long as you are learning from your experiences.

you must declare that you are deserving of success.

You deserve to have success and passion in your life—a big goal worth committing yourself to. You deserve to create and do something that sparks your interest and challenges you intellectually.

The mark of a professional is proper preparation. Before I make a trade, I have already worked out responses to meet virtually any conceivable development that may take place.

If your goal is big performance, large losses are simply unacceptable and counterproductive!

you need to associate pleasure with small losses and pain with large losses.

Not losing big is the single most important factor for winning big. As a speculator, losing is not a choice, but how much you lose is.

the difference between an amateur and a pro lies in consistency.

You are not going to be correct all of the time, and you are going to have losses.

only losers average down on losing positions.

Without a willing buyer, stocks of even the highest-quality companies are just worthless pieces of paper.

Small Success Leads to Big Success I long to accomplish a great and noble task, but it is my chief duty to accomplish small tasks as if they were great and noble. —Helen Keller

Big success in life is the result of a series of small successes all linked together over time.

In the long run, luck is for losers.

If you want consistent success, you must apply discipline consistently.

a stock near its 52-week low at best has overhead supply to work through and lacks upside momentum. But a stock hitting a new high has no overhead supply.

When you evolve to the point of always being patient and only taking quality trades, that means you’ve decided that you’re not in it for action, but to make money. You’re a pro.

Think of your portfolio like a garden. You pull the weeds and water the flowers—nurturing what you want to grow and getting rid of anything unwanted that’s only depleting resources.

Sometimes the best stock to buy is the one you already own.

To speak bluntly, fear can make you stupid.

When your stock is extended in price and most days are up days, you’ll probably feel complacent.

If your stock experiences its largest daily and/or weekly price decline since the beginning of a Stage 2 advance, this is almost always an outright sell signal.

often will set my back stop at or above my average gain, because I want to maintain my average, at least, and preferably improve on it over time.

Bottom line: if you don’t sell early, you’re going to sell late.

your two most precious assets as a trader: your capital and your confidence.

If you want big returns in the stock market, you have to learn how to accomplish two things: 1. Make big money when you’re correct, and 2. Avoid big drawdowns when you’re wrong.

I never make a sell decision based on turnover or tax reasons.

Traders don’t get married to a stock—they just “date.”

Your money should always be moving to where you are going to reap the best performance, and moving out of troubled situations that put your capital at risk.

You should take a short-term approach to losses and a relatively longer-term approach to gains; that means you cut your losses and let your winners run.

Always keep in mind, it’s generally better to sell early than late.

Professional traders sell into strength. They want to sell when there are eager buyers. Amateurs, on the other hand, get happy and giddy, thinking that their rising stock is never going down.

It’s far better to sell into strength than wait too long and lose all or most of the sizeable gain you once had.

When you sell into strength, your equity value is at its highest point. If you want to maintain an equity curve that consistently stair-steps up, you should learn how to sell when you have a decent gain while the stock is advancing.

And 12 trades (one per month on average) that produce a 10 percent return will more than triple your money.

When losses mount, it takes a toll not only financially, but also emotionally. Your confidence gets shaken.

Losses are valuable information that things aren’t working. Your timing is off, or perhaps the market is weighing on stocks in general.

never buy a falling stock. I always trade directionally.

Making money is the result or by-product of effectively carrying out a well-thought-out plan.

three questions—what went great, what were the lessons learned, and how am I going to improve—will help traders learn from their results and improve.

When you come from a place of mental and emotional abundance, you will trade better.

 

When you take a small loss in accordance with those rules, you celebrate! Jump out of your chair, do a happy dance, go tell someone you love. You want to emotionally stimulate your body so that you feel that taking a small loss is a huge victory.

train yourself to experience a small loss as a huge victory.

You want to trade at your best—on a 1-to-10 scale, you want to be at a 9 or 10, emotionally, physically, and mentally.

 

ask powerful questions, you get powerful answers.

Fear is nothing more than your nervous system asking if you are prepared.

Paralysis is what happens if you aren’t prepared, especially with mental rehearsal

 

A few book were mentioned I would like to read:

Momentum Masters: A Roundtable Interview with Super Traders

Mastery by Robert Greene

Charles Duhigg’s book The Power of Habit

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