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
Nasdaq (+0.99%) went higher with bigger volumes than the previous day. As already stated, building a base here before a potential breakout is a healthy price action. Watching this channel while also keeping an eye on a possible violation of the recent support (SMA50 / EMA21 area). $NASDAQ(.IXIC)$ SP-500 (+0.59%) went higher with lower volumes. This is an inflection point as the price face very strong resistance (both the recent high and the 12th of September high) and the proximity of SMA200. Definitely, this might a big milestone if passed. As always, be prepared for rejection as well. $S&P 500(.SPX)$ In the newsFed Minutes Show Most Officials Favored Slowing Rate Rises S
Nasdaq (+2.31%) opened lower and succeeded in closing above Thursday’s high and above the EMA21. I wish we had more volumes. It seems the 10000 level is in the mirror now, but the 11000 level is also a critical test if the price wants to advance (the same for the 11250 level). $NASDAQ(.IXIC)$ SP-500 (+2.37%) had the FTD day (follow-through day, a good advance with strong volumes) and close above the EMA21. Of course, the marked levels at 3770 & 3810 are key tests for the price in its possible advance. Keep an eye on Friday’s low as well. $S&P 500(.SPX)$ In the newsBitcoin’s volatility falls below Nasdaq and S&P 500′s for the first time since 2020.Saudi Arabia launches bid to a
Nasdaq (-0.85%) gapped down and closed the day forming a Doji candle. This might suggest indecision… towards the bearish side. After another distribution day, we can only observe the price action and keep looking for clues: above Tuesday’s high or yesterday’s low. Watching the marked levels as well. $NASDAQ(.IXIC)$ SP-500 (-0.67%) closed below EMA21 and the price seems it wants to be both in a bullish pattern (bull flag) and can ignite above Tuesday’s high or we have just an ordinary EMA21 visit (mean reversion) and the downtrend will continue. $S&P 500(.SPX)$ In the newsBiden administration awards $2.8 billion in grants for electric vehicle battery manufacturing.Mortgage
Nasdaq (+0.90%) continued the rally and gapped up in the morning, but it didn’t succeed to stay above the EMA21. The move is still positive and I look for more money coming in and the price to grind above all the main averages. Of course, watching all the resistance levels (see them marked). If 13200 is taken, we might talk about a solid new uptrend. $NASDAQ(.IXIC)$ SP-500 (+1.14%) had a similar price action and was able to close above the EMA21. The price formed a small W pattern and if taken, it will be a good sign for a possible rally to (at least) main averages. We are still in the bear market, hard to tell if the price is in a new uptrend or just in a visit to its main averages. Watching the marked levels.