Mark Minervini's Official Blog

Stock Market Wizard, U.S. Investing Champion Mark Minervini Shares Ideas and Wisdom Here FREE!

Q&A with Mark Minervini

June 06, 2013


Q:  If an up trending chart looks great but we're in a down trending market, do you buy the stock or remain on the sidelines?


A:  If I have evidence that we are in a correction or worse, in a bear market, I will generally stay on the sidelines or at the very least, trade lighter than normal.  If I see signs of accumulation in the major averages and stocks are setting-up constructively, I will take some small “pilot buys”, however, I won’t really step up my trading until I see a second wave of stocks set-up subsequent to the first wave, provided that the my pilot buys show some progress.  In most cases, I want to see additional follow through in the averages around the same time.


Q:  Would you choose to invest in a stock with unfavorable fundamentals in a very bullish environment? 


A:  The best trades are often when you have fundamentals, technicals and market tone all in your favor.  So, I try to focus on companies that have solid characteristics during a healthy market environment.  The only time I completely ignore fundamentals are in very high momentum situations where the chart is saying something big is definitely going on.


Q:  Can you describe your money management strategies? What percent do you put on initially?  How do you add and how do you exit?


A:   I incrementally commit to positions until I have an indication that conditions are right; then I step on the gas.  My position sizing is based on liquidity; as long as things are working out, I try to put on as much as I can up to 25% of my portfolio.  I trade much smaller when I’m less confident.        


Q:  Do you consider volume in your decision to buy or pass?  


A:  Volume on a breakout is a good indication however; I won't always abandon the trade if volume doesn't come in on the first day. Often volume comes in a day or two later. Lack of volume however, does raise a red flag; volume would need to come in soon after. As always, maintain your stop regardless.



Data and information is provided for informational purposes only. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. Neither Mark Minervini, or Minervini Private Access , LLC nor any of its data or content providers shall be liable for any errors or omissions or for any actions taken in reliance thereon. By accessing this website, and its pages, links and trading services which users may access through this site, a user agrees not to redistribute the information found therein. All material in this website and its related websites and pages are protected under copyright laws of the United States. Unauthorized forwarding, copying or reproduction will be treated as a breach of copyright. Mark Minervini is not an investment advisor, financial planner, nor a securities broker. Minervini Private Access, LLC is not a registered broker-dealer. The Information provided in this website is not to be relied upon for your investment decision. Your decision to buy any securities is as a result your own free will and your own research. Individual performance depends upon each user or student's unique skills, time commitment, and effort. User's and students sharing their stories have not been compensated. Student stories have not been independently verified by Minervini Private Access, LLC. These results may not be typical and individual results will vary. Past results are not indicative of future returns. There is a very high degree of risk involved in any type of trading. Stocks, Options, ETF's & Futures are not suitable for all investors. Minervini Private Access, LLC., its subsidiaries and all "affiliated" individuals assume no responsibilities for your trading and investment results. No representation is being made that any account will or is likely to achieve profits. All investors should consult a qualified professional before trading any stock. Under no circumstances should anything contained in this website be construed or considered as an offer to sell, or a solicitation of any offer to buy. While all reasonable care has been taken to ensure that the information contained herein is not untrue or misleading at the time of publication, we make no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time Minervini Private Access, LLC and any of its officers or employees may have a position or otherwise be interested in any transactions, in any investments (including derivatives) directly or indirectly the subject of this report. Entities including but not limited to Minervini Private Access, LLC, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Specific Entry Point Analysis®, SEPA®, Leadership Profile® and Minervini Select® are Registered Trademarks of Minervini Private Access, LLC. All other trademarks are property of their respective owners. All rights reserved.