The main topics in this Knowledgebase are divided into:My General Approach and PhilosophyEvaluating a CompanyPortfolio ManagementAdjusted vs GAAP EarningsWhat is My Buying Policy?What is My Selling Policy?## My General Approach and PhilosophyMost of my stocks start with a recommendation and write-up by someone I have a lot of confidence in. This could be someone on the board, Bert, The Motley Fool, or more rarely a write-up by someone else on Seeking Alpha.I want rapid revenue growth. My ideas about that have become inflated in the last couple of years and where I once might have looked for 20% to 25% as very fast growth, I’m now looking for 40% growth, and sometimes more.I look for a stock in a special niche, with something special about it. I guess this could be considered a moat. It als

One of the most important qualities a trader can possess is the ability to change their mind when new evidence arises. Being able to adjust your trading decisions in response to changing market conditions or new information is crucial for success in the fast-paced and ever-changing world of trading.It’s natural for traders to develop certain biases or preconceptions about the market based on their past experiences or personal beliefs. However, it’s important to recognize that these biases can often cloud our judgment and prevent us from making rational decisions based on the current market conditions.By being open-minded and willing to change your perspective, you can better adapt to changing market conditions and make more informed trading decisions. This can help you avoid costly mistake

Mark Minervini is a legendary trader who has made a name for himself in the world of investing. He is famous for his unique approach to trading, which emphasizes finding quality stocks with strong fundamentals and a proven track record of success.Here are 15 trading tips from Mark Minervini that can help improve your trading performance:Have a plan: Minervini believes that successful trading requires a consistent strategy based on proven principles. He advises traders to develop a trading plan that they can follow consistently.Focus on explosive earnings growth: Minervini looks for explosive earnings growth in the companies he invests in. He believes that a company’s earnings growth is one of the most important indicators of its potential for success.Pay attention to market leadership: Mar

Trading is a complex and challenging activity that requires a lot of discipline, patience, and skill. Even experienced traders can make mistakes that can lead to significant losses.Here are the most common pitfalls in trading and how to avoid them:Overtrading: One of the most common pitfalls in trading is overtrading, which means trading too frequently and impulsively. Overtrading can lead to emotional decisions, losses, and exhaustion.Lack of discipline: Another common pitfall in trading is a lack of discipline. Traders lacking discipline may have difficulty sticking to their trading plan, following risk management rules, or controlling their emotions.Trading without a plan: Trading without a plan is another common mistake that traders make. A trading plan should include entry and exit st

Never underestimate the power of a momentum move. Up or Down. Once the freight train is in motion, it will keep going much further than most have anticipated.Price is the only thing that matters. Adapt to it, don’t fight it.Don’t underestimate the power of desperate money managers in the fourth quarter. They need to beat their benchmarks or risk losing their jobs/clients.Mental stops will ensure you an emotional trade. Don't use mental stops. You are either in the trade or not. Mental stops invite emotions.Mental stops are another way of saying: “I am not sure where to place my stop”Adding to a losing position is one of the best ways to end your trading career.The biggest winning trades normally have a big volume driving them higher.Trading triple ETFS will deplete the account over the lon

Plan your trades. Trade your plan.Keep records of your trading results.Keep a positive attitude, no matter how much you lose.Don’t take the market home.Continually set higher trading goals.Successful traders buy into bad news and sell into good news.Successful traders are not afraid to buy high and sell low.Successful traders have a well-scheduled planned time for studying the markets.Successful traders isolate themselves from the opinions of others.Continually strive for patience, perseverance, determination, and rational action.Limit your losses — use stops!Never cancel a stop loss order after you have placed it!Place the stop at the time you make your trade.Never get into the market because you are anxious because of waiting.Avoid getting in or out of the market too often.Losses make th

Many people are already working at the type of companies Buffett is searching for. They have an intimate knowledge of the business, management and prospects for the company. As insiders, they may have a better understanding of their own company than the Wall Street analysts that cover it.Buffett also says that you should not try to predict general business fluctuations or the direction of the stock market. In other words, you should not be concerned with what someone thinks the market might do and instead focus on what the “company” will do. After all, there isn’t anyone who can accurately predict markets. As the saying goes: “even a broken clock is right twice a day.”Here are some of his best thoughts:No Need to Forecast the MarketBuffett describes the market in the late 1950s as exuberan