Mark Minervini is a 5 time US investing Champion, a multi-millionaire from trading and he trains future traders. Many of his students have gone on to great heights and performed well, many featured in top 10 in US investing championship.


Here are his time tested 10 Trading Rules for successful trading.

RULE #1

Concentrate - Don’t diversify

  • keeps things manageable

  • Keeps you focused

  • Allows you to be patient - the luxury of integrity

Focus on the very best names

RULE #2

Turn over your portfolio

  • Forget about taxes

  • Forget about getting the high

  • Forget about your ego

Nail down decent profits when you have them

RULE #3

Time your trades

  • Time is money

  • Use charts

  • Learn how to identify a VCP (Volatility Contraction Pattern) setup 

Develop “sit-out power” - only trade proper set-ups and allow them to come to you

RULE #4

Manage the risk reward relationship 

  • Do the math

  • Don’t risk more than you expect to gain

  • Monitor your gains regularly 

Rule of thumb: Cut your losses at 1/2 your gains

Build in “failure” (a system / edge based on win-loss rate depending on the strategy. Risk-reward should be based on this. Risk not higher than reward is win rate is low)

Approach each trade “risk first”

  • Know where you’re getting out BEFORE you get in

  • Write it down 

  • CUT YOUR LOSSES QUICKLY - don’t vacillate. 

Failure to adhere to stops is the single most destructive mistake made by all investors. 

NO BIG LOSSES

NO FORCED TRADES 

RULE #5

Trade directionally 

  • Only buy in the direction of your trade

  • Never average down

  • Multiple timeframe alignment 

Determine if the “train” is on schedule 

RULE #6

Build on Success

  • Trading is not an on/off business

  • Let small wins finance larger risk

  • Trade largest when trading your best and smallest when trading your worst

If you’re not profitable at 25% or 50% invested, don’t go to 75% or 100% invested. 

RULE #7

Protect your breakeven point ASAP

  • 2-3x risk above average gain

  • Never let a good size gain turn into a loss

  • Backstop you’re profit

  • 50-day Rule (for stop loss once 50MA moves above breakeven price)

RULE #8

Sell into strength

  • get out before the stock can break

  • It’s better to sell early than late

  • Selling half is a win/win solution

RULE #9

Conduct post analysis regularly 

  • Results don’t lie

  • Look for commonalities (behavioural patterns)

  • Improve your weaknesses 

Know the truth about your trading 

RULE #10 

Avoid Style drift

  • define your trading style (day trade, Swing or long term investor, partial profit/adjust stop loss)

  • Be willing to sacrifice 

  • Become a specialist 

You will see how our recent training event on one of the most simplistic trading strategy - “CT50 - Simple 3 Step trading strategy” - has incorporated these time tested rules of trading within its framework to give you the edge for gradual accumulation of wealth and a secure way to GrowWealth over time.

Trading and stock market investing is an “art” that anyone can learn with the right guidance and effort.

Here at GrowWealth, you get the guidance. With your efforts to learn and practice the discipline, you are then destined for greatness.

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