Mark Minervini’s Trading Strategy: Few Tips for Beginner Traders from An Expert

Lois Zaytsaw
Lois Zaytsaw Finance
9 Min Read

Are you looking to take your trading strategies to the next level? Look no further than Mark Minervini’s trading strategy. With over 30 years of stock market experience, this approach has not only resulted in winning streaks beyond 127 consecutive trades but granted him entry into an exclusive group of traders: The Wall Street Winners Circle. By understanding and following these key points from his methodology, even novice traders can emulate these exceptional results. Read on for an overview of these pivotal components forming this groundbreaking strategy’s fundamental basis.

Who Is Mark Minervini?

As a record-breaking stock trader, renowned author, and esteemed performance coach, Mark Minervini is widely acclaimed for his incredible success in the market. His remarkable 155% annual return earned him first place in the 1997 U.S. Investing Championship, further maximizing his financial successes over time. Furthermore, Minervini has also penned several books on trading, such as “Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market” and “Think and Trade Like a Champion: The Secrets Rules Blunt Truths of a Stock Market Wizard.” As a global leader in trading, Minervini is renowned for his excellent insights and strategies. His private platform, Minervini Private Access, offers exclusive access to market analysis tools and trades strictly reserved for members only. He has been featured on major news outlets such as CNBC, Fox Business, and Bloomberg TV through these premium services.

mark minervinis trading strategy few tips for beginner traders from an expert 2

The Four Ms of Mark Minervini’s Trading Strategy:

Mark Minervini’s investment approach is based on the four Ms, a set of conditions he uses to evaluate and determine stocks likely to bring forth significant returns. Let us take a closer look at these criteria:


By honing in on stocks with an upward trend and a favorable marketplace, Minervini uses technical analysis to identify the most likely trades. In doing so, he can yield more returns than just playing it safe by investing in traditional markets.


Minervini employs a unique combination of both technical and fundamental analysis when selecting his stocks. Not only does he seek out those with impressive sales and earnings growth, but he also utilizes charts to pinpoint key support/resistance levels to bolster his approach further. This method has enabled him to consistently exceed the market’s estimated earnings expectations.


Mark Minervini stresses the need for a determined attitude and following one’s trading strategy. He believes that successful traders must control their emotive state, resisting rash moves to ensure maximum success. This focuses on the psychological component of trading, a vital element in attaining lasting wealth.

Money management: 

Minervini emphasizes the importance of managing risk in trading and preserving capital. Position-sizing strategies, stop-loss orders, and a concentration on avoiding excessive trades can assist investors with protecting them from unwanted losses while potentially maximizing profits. By using these techniques to control potential risks, he maintains that traders are set up for long-term success.

The Seven Setups of Mark Minervini’s Trading Strategy:

Mark Minervini has crafted seven setups based on synthesizing technical and fundamental analysis to recognize potential trades. To give an overview of each setup:

  1. The Gap Thrust: When stocks open on large volumes and trend upwards throughout the day, Minervini takes notice. He looks for companies with sound fundamentals and the backing of institutional investors to ensure consistent growth.
  2. The Power Trend: When a stock is upward, making higher highs and higher lows, it’s time to take notice. As part of his strategy, Minervini looks for companies with strong earnings growth accompanied by sales increases and a record of exceeding expectations regarding their financial performance.
  3. The Volatility Squeeze: When a stock endures little volatility but then suddenly realizes an increase in volatility, this is the perfect setup for Minervini. He seeks out stocks with solid fundamentals and prior experience with remarkable movements.
  4. The High, Tight Flag: If a stock is stationary near its peak, this setup will take place. Minervini searches for stocks with formidable income growth and records of impressive rises.
  5. The Ascending Base: When a stock has been in an extended bullish trend and forms successively higher lows, Minervini utilizes his expertise to identify stocks with sound fundamentals that have institutional backing.
  6. The IPO Base: After a fresh stock’s initial public offering, Minervini is always looking for ones with rock-solid fundamentals and ample institutional ownership that form a base.
  7. The Plateau Base: After a period of impressive growth, stocks have the potential to form strong bases, and this is where Minervini shines. He has an eye for finding shares that possess not only excellent fundamentals but also boast record-breaking swings.

It’s important to remember that Minervini doesn’t solely depend on these setups to determine his trades; he also evaluates factors like the state of the market and overall trends.

How Does Mark Minervini Manage Risk in Trading?

To protect his investments, Mark Minervini utilizes position sizing and stop-loss orders to carefully manage risk when trading.

When it comes to trading, appropriately allocating capital based on the account size, the risk-reward ratio of the trade, and stock volatility is essential – this process is known as position sizing. To ensure that his investments are secure and profitable, Minervini utilizes a specific formula for calculating how much money should be placed into each trade. This equation considers these factors above to ensure every transaction yields its desired result!

To abate potential losses, Mark Minervini’s trading strategy revolves heavily around stop-loss orders. This approach helps to limit any financial damage and keep them from increasing too much. For determining his stop-loss orders, Minervini considers the support levels on the graph and other variables like stock volatility.

Ultimately, Minervini focuses on the importance of safeguarding his capital and preventing excessive trading. He only takes trades that meet his criteria, accordingly prioritizing quality over quantity to mitigate overall risk in his approach to trading. By adhering to this strategy, he can decrease volatility while increasing profitability.


In conclusion, Mark Minervini’s trading strategy proves to be successful in the stock market if done right. Trading can be risky if inexperienced, and therefore, beginner traders should take the necessary precautions before investing. With the right combination of knowledge and risk management, one could potentially join the host of trading success stories. Reading Minervini’s materials or attending his seminars are great ways to understand his strategies deeply in pursuit of greater profits. However, as with any financial decision involving large sums of money, it would be wise for beginners to do their own research before committing funds anywhere. Ultimately, Minervini’s success should always be seen as a sign of hope and prove that you, too, can make it big in the stock market arena, where much has been made by skilled traders like him. So go ahead, equip yourself with the best information available, and start your journey into trading today — do your own research before making any major financial decisions!

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Lois Zaytsaw
By Lois Zaytsaw Content Editor, Financial Writer
Meet Lois, a dynamic Crypto, Blockchain, and Finance Writer/Journalist based in the bustling metropolis of New York City. With a passion for technology and a keen understanding of finance, Lois has been covering the latest developments in the world of cryptocurrency and blockchain for several years. Her insightful articles have been featured in numerous leading publications, including The Wall Street Journal, Bloomberg, and CryptoBriefing. Lois' fascination with blockchain and cryptocurrency began during her time as a student at university, where she studied economics and computer science. She was drawn to the disruptive potential of blockchain technology to revolutionize the traditional financial industry, and since then, she has been following the latest trends and innovations in the space.
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