[Other's Stone] Mark Minervini - The Transformation Journey from a Retail Investor to the National Investment Champion

#比特币行情观察
"The market does not care about your feelings; it is neither happy for you nor sad for you. The hallmark of a successful trader is the ability to execute a plan without emotion."

In the arena of trading, few can achieve the level of discipline and systematization as Mark Minervini. This legendary figure, known as the "super trader," set an astonishing record of a cumulative return of 33,500% over five years in the national investment competition through his unique stock selection methods and strict risk control, achieving an annualized compound return of 220%. Even more impressive, he turned $107,000 into $33 million in just five years, completing a perfect transformation from a regular retail investor to an investment master.

Legendary Career: From the Brink of Bankruptcy to National Champion

Minerva's trading journey is full of ups and downs, along with redemption:

Difficult Startup Period (1980s)

· Started investing in stocks at 16, making the first trade with saved $800.
· Early on, faced repeated defeats, experiencing multiple liquidations and bankruptcies.
· Once lost so much that I couldn't even afford rent and was forced to sleep on a friend's couch.

Turning Point Awakening Period (1990-1994)

· After deep reflection, I recognize the importance of emotional control and systematic trading.
· Start building your own trading system, integrating technical analysis with fundamental analysis
· Participated in the National Investment Competition in 1994, achieving a return of 76% in the first year.

Glorious Peak Period (1995-1999)

· In 1995, achieved a return of 155% and won the runner-up.
· Achieved a 120% return in 1996
· Achieved a return rate of 155% in 1997, with a remarkable cumulative total of 33,500% over five years.
· The managed personal account grew from $107,000 to $33 million.

Inheritance Sharing Period (2000 to Present)

· Organize trading insights into the "Stock Wizard" series of books
· Establish trading training courses to cultivate a new generation of traders
· Continuously trade in the market and maintain excellent performance

Core Trading Philosophy: SEPA Strategy System

Minerva's success is built on a unique SEPA (Specific Entry Point Analysis) strategy:

Precise stock selection criteria
"Only trade stocks that have a clear competitive advantage." Mineirvini emphasized:

· Looking for companies with sustained high growth in revenue and profit
· Focus on industry leaders and companies with unique moats.
· Choose stocks that institutional investors are accumulating.

Strict technical timing
"Buy the right stocks at the right time." His timing principles include:

· Buy only when the stock breaks through key price levels.
· Ensure that the trading volume is in line with the price breakout
· Select the top 30 stocks based on relative strength ranking.

Dynamic Risk Management
"Risk should be defined before you buy, not after. " His risk management system:

The maximum risk for a single transaction is controlled within 1% of the total account funds.
· Immediately stop loss if any position loss reaches 7-8%
· Optimize the risk-reward ratio through batch building and batch profit-taking.

Classic Battle: AOL's Perfect Operation

The operation of America Online (AOL) in 1998 perfectly showcased Minervini's trading art:

Stock selection logic

· Discover AOL's monopoly position and explosive growth in the internet industry
· The company's revenue has maintained over 100% year-on-year growth for several consecutive quarters.
· The relative strength ranking continues to be at the forefront of the market.

Entry timing

· Waiting for the stock price to complete a 6-month base building near $30.
· Establish an initial position when the trading volume breaks through the key resistance level of 32 dollars.
· Continue to increase positions after the breakout, ultimately controlling the average cost at around 33 dollars.

Position Management

· Set a hard stop-loss at $28, strictly controlling risks within the plan.
· Continuously adjust the take-profit level upwards during the rise in stock prices to lock in profits.
· Finally exited in batches around $98, with a single trade profit of nearly 200%.

The Three Stones Revelation:

The value of systematic trading
"Trading without a plan is gambling." In an age of information explosion, establishing your own trading system is more important than chasing trends. Every investor should develop a decision-making framework that suits them.

The Art of Emotional Management
"Let your profits run, but strictly control your losses." The success of Minealveni proves that overcoming human greed and fear is the key to long-term profitability. This requires cultivating trading discipline through deliberate training.

The Importance of Continuous Learning
From the brink of bankruptcy to national champions, MinerVini has demonstrated the power of continuous evolution. In a fast-changing market, the ability to keep learning and adapt is fundamental to survival.

Risk-first mindset
"First, focus on how much you might lose, and then consider how much you can earn." This conservative view on risk has allowed him to survive multiple market crises.

Three Stones Conclusion

Minervini once profoundly pointed out: "There is nothing new in the market, only the human psychology that keeps repeating."

His trading career perfectly illustrates how to transform ordinary abilities into extraordinary achievements through strict self-management and a systematic approach. In the fast-paced world of trading, where quick profits are pursued, he has demonstrated the philosophy that slow is fast—achieving the miracle of compound interest through consistent small gains and strict risk control.

What he left to the trading world is not only an astonishing record of returns but also a learnable and replicable trading methodology. In this market filled with uncertainty, Minervini tells us: success is not about predicting every market fluctuation, but about establishing a robust system that can cope with various market environments.

A true trading master is not a shooting star that occasionally creates amazing profits, but a star that can survive in the market for many years and earn stable profits. In tomorrow's series, we will continue to explore the wisdom of another trading master and see how his trading philosophy differs from that of Mineirvini.