By Mark Minervini
Introduction
First Steps to Thinking and Trading Like a Champion
- Sets the foundation for the "Champion" mindset, emphasizing that winning is a conscious choice and introducing the SEPA® strategy context.
Section 1: Always Go in with a Plan
- Details the necessity of a written trading plan, defining entry/exit rules, and preparing for various market scenarios (contingency planning).
Section 2: Approach Every Trade Risk-First
Focuses on capital preservation, defining stop-loss levels before entry, and avoiding the trap of becoming an "involuntary investor."
Section 3: Never Risk More Than You Expect to Gain
Explains the mathematics of risk/reward ratios, ensuring that potential profits always outweigh potential losses on every setup.
Section 4: Know the Truth About Your Trading
Advocates for rigorous self-analysis, tracking every trade in a journal to understand true win rates, average gains, and average losses.
Section 5: Compound Money, Not Mistakes
Discusses the power of compounding gains while avoiding the "big losses" that destroy accounts and reset the compounding clock.
Section 6: How and When to Buy Stocks—Part 1
Introduces the Trend Template and the concept of Stage 2 advances, filtering for stocks in strong long-term uptrends.
Section 7: How and When to Buy Stocks—Part 2
Deep dives into specific entry patterns, focusing on the Volatility Contraction Pattern (VCP) and precise pivot points.
Section 8: Position Sizing for Optimal Results
Provides the formula for determining how many shares to buy based on account size, risk per trade, and the distance to the stop loss.
Section 9: When to Sell and Nail Down Profits
Outlines strategies for selling losers quickly and letting winners run, including trailing stops and selling into strength.
Section 10: Eight Keys to Unlocking Superperformance
Summarizes the core principles that separate average traders from "Market Wizards," such as focusing on leaders and ignoring laggards.
Section 11: The Champion Trader Mindset
Special Collaboration with Jairek Robbins: A deep dive into trading psychology, overcoming fear (FOMO, loss), and using mental rehearsal to build emotional resilience.