Reviewer's Note | Recommendation

[Introduction] Thinking and Trading Like a Champion: The First Step

Decide to Succeed | A Tale of Two Wolves | Align Your Inner Compass | Best Practices for Success | Embrace the Process | Define Yourself | Sequencing Rewards | Take Action | Step Out of Your Comfort Zone | Pursue the Third Level of Knowledge | Here We Go!

[Chapter 1] Always go in with a plan

Create a procedure | Hope is not a plan | Contingency plans | Plan in real life | How many days will a trend last? | I want tennis balls, not eggs | Counting days to confirm an uptrend | When not to sell an extended stock | Unwinding as planned
When Not to Lie | Squats and Recovery After a Stock Reversal | Avoiding the Cycle of Paralysis and Regret

[Chapter 2] Risk is the top priority in all transactions.

Exit Planning | Accepting Small Losses | The Need for Stop-Stop Orders | Don't Become an "Involuntary Investor" | How Much Is Too Much Risk? | Avoiding Wild Words | Control Risk When Buying, Not Selling | Trading Around Risk Levels | Knowing What You Control | Who's Right and Who's Wrong | Trading Lessons

[Chapter 3] You can't take on more risk than you can gain.

Average win rate | Pre-factoring in 'failures' | The science of volatility and expectations | Not all ratios are created equal | Don't leave room for your stop price | The final holy grail | Theory-based assumptions | Results-based assumptions | Using step-based stops | When to raise your stop price? | Increasing your position size without adding risk | Batting average | Mathematically, you win eight out of ten times | Why most investors fail to manage risk

[Chapter 4] The Truth About Trading

The Power of Measurement | The Most Valuable Trading Tip | Always Be Honest with Yourself | Keep a Daily Journal | Settlement Table | Trading Triangle | Monthly Checklist | Other Numbers to Check | The Bell Curve | Turnover and Opportunity Cost | Win/Win Solutions for Your Mental Health | Results-Based Assumption Forecasting | The Hidden Math in Trading | Doing What Most Traders Don't | Making Money or Making Excuses

[Chapter 5] What should be called compound interest is money, not mistakes.

The end doesn't justify the end | Losers average out the failures | The 50/80 rule | The cheap trap | Discrimination disclosure | Send the ball across the net | Small wins lead to big wins | Don't bet against the odds | Longevity is key | A significant win should never turn into a loss | It's best to avoid audible calling | Should you rely on earnings reports? | March to the beat of your own drum | Don't force a trade | Develop the power of sitting still | Luck is only good in Las Vegas | Winners are prepared

[Chapter 6] How and When to Buy, Part 1

Why I Look at Charts | The Importance of Step 2 | Trend Templates | Trend Template Criteria | Even Pros Make Mistakes | Beware of Chain Gap Generators | Volatility Contraction Patterns | How to Count Contraction Phases | Chart Footprints | How VCP Footprints Work | Buying Levels | What VCP Tells Us | Pivot Points | Volume at Pivot Points

[Chapter 7] How and When to Buy, Part 2

Big profits come from new highs | How to properly exploit relative strength | What to look for | Leading stocks bottom first | Which leading stocks should you buy first? | The correction you're waiting for won't come | The 3C pattern | What is a deception pattern? | The low-deception pattern | The dream pattern | The double bottom | The power play

[Chapter 8] Position Sizing for Optimal Results

New Seed | Don't Sell Leading Stock Too Fast | Don't Distress

[Chapter 9] When to Sell and Secure Profits

The emotion of selling at a profit | Always look at charts from a distance and objective perspective | How to count bases | Deckers Outdoor | P/E expansion | Peak of climax | Selling on strength | Signs of a trend reversal | Selling on weakness | Buying at or above the price rule | Risk-free play | Backstop | Always selling too early or too late | Early stage exceptions | Know when and why to sell

[Chapter 10] Eight Keys to Unlocking the Door to High Profits

Four Keys to Generating Big Profits | Four Keys to Limiting Downturns | Eight Keys in Your Hand

[Chapter 11] The Spirit of a Champion Trader

Acknowledgements

Amazon's "Most Awaited Investment Book of the Year"
Average annual return of 220% from 1994 to 2000!
Winner of the 1997 and 2021 National Investment Competitions
Mark Minervini is the most successful person in America.
The secret technique that helped me become a stock trader!

'This is not a book to be read once or twice and then put on the bookshelf.
This is a book that you should always keep by your bedside, on your desk, and next to your monitor.
You've read this book dozens of times? You still have a long way to go.
Winners of the National Investment Competition have read this book hundreds of times.
- Kim Dae-hyun, author of "Breakthrough Trading Strategy"

Unless you're just starting out in the stock market, you probably have your own rules, even if they're just one. For example, you buy stocks with low price-to-earnings ratios or buy when the price crosses a certain moving average.
As you know, there is no right answer in the stock market, and there is no one-size-fits-all method.
That's why so many investment experts tell us to find our own way.

I followed those words and found my own way and invested accordingly, but lo and behold, losses pile up.
'It was definitely delicious, so why?' This reminds me of what Minervini said.
“The probability of success is at most a little over 50%.” One question arises here.
'If the odds are 50%, or at best 55%, how does Mark Minervini consistently make a profit year after year?'

The secret lies in the rules.
However, as mentioned earlier, most stock investors have their own rules.
So where does the difference lie? Investors' rules are generally limited to buying.
On the contrary, I don't really think about when to sell.
There is a vague expectation that 'if you wait, it will go up', and even if it does go up, there are many cases where people sell it quickly for a small profit without any principles or fail to sell it at the right time, resulting in a large loss instead of a profit.


Anyone who has invested in stocks for a long time will agree that the stock market is a place where the word "variable" fits very well.
Unless you are God, you cannot know the direction of the stock price.
So, we have to make some decisions when the stock price goes against our expectations.
Usually it's either sell or hold.
Knowing when to buy is important, but knowing when to sell or when to hold is more important than anything else.
This is especially true for investors who want to make money quickly.
This book not only provides position sizing for successful investing, but also contains sophisticated buying methods and selling plan know-how that Minervini himself has applied in practice.
This part alone would be a huge opportunity for some.

8 Keys to Opening the Door to High Profits!
How to make big profits with low risk!

This book is a complementary series to 『High-Yield Growth Stock Investment』, to the point that the author himself says it has become a serial.
This book covers how long to hold short-term profitable stocks for long-term gains, when to cut losses even before the stock price reaches your stop price, how to establish optimal position size, how and when to buy and sell, and what exactly to consider in post-trade analysis to address weaknesses and build a solid foundation for trading success.


This leads to what the author calls the '8 Keys to Achieving Ultra High Profits'.
What should I do to generate big profits?

1.
timing

Entering and exiting positions at opportune times is the key to achieving ultra-high profits.
This is also the core of this book.

2.
Does not disperse

To achieve consistent, high returns, you should focus on 4 to 12 stocks, depending on your account size and risk tolerance.

3.
Trading is not taboo

Your investments always carry the risk of losing your principal, so you should move them to places where you can achieve good results.

4.
Always maintain a risk/reward relationship

Approach losses in the short term, and gains in the long term.
For example, if you think the stock price will trade 15% higher, set your stop loss at 8%, 7%, or even lower.
Even if there is a 50/50 chance that I am right, I only have to take a 7% risk for a 15% reward, so it's a good risk/reward ratio.

5.
Sell ​​on the uptrend

What do you do when a stock you bought steadily rises and your position rises by 20%, 30%, or even 40%? Professional traders sell on a bullish trend.
They sell when there is an enthusiastic buyer.
Amateurs, on the other hand, get excited thinking that their rising stocks will never go down.

6.
Trade small before trading big

When you are 'right', you can trade larger amounts and increase your overall risk exposure.
The key here is to build success on previous successes.
Conversely, you cannot maintain an aggressive attitude when trading does not go as planned.
At this time, you should slow down your trading speed or take a break while analyzing the reasons why you are not in sync with the market.


7.
Always trade directionally

Buying is done in the direction of the transaction.
If the price of your favorite stock has dropped, wait for it to start to rebound before risking your hard-earned money.
I never buy a falling stock.

8.
If you have secured an appropriate return, keep the purchase price.

When a position is profitable and shows a reasonable return, raise the stop to protect the purchase price or reduce risk.

To elaborate on key number 4, most traders are now accustomed to setting stop losses.
So, you might think, "This is another story I already know."
But this book doesn't just tell the usual stories.
Rather, the author argues that while it is true that setting a cutoff point is a good principle, where it is set is more important.


The stop loss price should be set at an appropriate level considering the risk compared to the reward.
If you don't maintain balance, you may end up taking too much risk for too little reward.

The author related his own experience: in 2011, he bought a stock called Body Central with a risk of losing 5%, and it soared 40% in just six days. He then sold some of it during the bull market, making a huge profit.
But let's say that instead of selling at this time, you move the stop to the purchase price and record a 78% profit after 3 months.
Is it a good deal? Contrary to popular belief, he says no.
Why? Because the risk/reward relationship was not maintained.
If you wanted to realize a 78% return, you would have to tolerate a 27% drop to get another 27% return.


The author knows exactly how to react if the stock he bought doesn't move the way he wants.
This is the author's secret to consistently making money, and it is the rule and technique we should learn from the book.
After reading this book, you too can do so.
If you can personally understand and apply what to do when the stocks you buy don't move the way you want, your portfolio will undoubtedly soar.