“Momentum Masters: A Roundtable Interview with Super Traders Mark Minervini, Dan Zanger, David Ryan, and Mark Ritchie II,” published by Access Publishing Group, LLC in 2015, offers investors a comprehensive guide to achieving success in the stock market.
The central theme of the book is to address the real-world challenges and knowledge gaps that confront traders, providing insights into how to truly make money in the stock market. Author Mark Minervini, a U.S. Investing Champion, observed that despite the depth of his first book, “Trade Like a Stock Market Wizard,” traders continued to have a hunger for more knowledge. This led to the unique roundtable interview format of “Momentum Masters,” where Minervini and three other highly successful traders ā David Ryan, Dan Zanger, and Mark Ritchie II ā answer a curated set of 130 relevant questions submitted by real traders. This format allows readers to compare and contrast the diverse insights, acumen, and trading experiences of the four masters.
The book is praised for its “all meat” approach, focusing purely on questions and answers pertaining to trading, without colorful biographical details or literary flourishes. It distills wisdom on trading high-momentum stocks.
Meet the Momentum Masters:
- Mark Minervini: Author of “Trade Like a Stock Market Wizard,” he turned a few thousand dollars into millions, averaging 220% per year for five consecutive years, achieving an incredible 36,000% total return. He also won the 1997 U.S. Investing Championship with a 155% annual return.
- David Ryan: A protĆ©gĆ© of William O’Neil, he won the U.S. Investing Championship three years in a row (1985-1987), achieving a total return of 1,379% over those three years. He favors fast-growing small- and mid-cap stocks.
- Dan Zanger: Chief technical analyst for chartpattern.com, he famously turned $10,775 into an audited gain of $18 million in just 18 months, a 164,000% return. He prefers larger-cap and even mega-cap stocks.
- Mark Ritchie II: Son of well-known trader Mark Ritchie, he achieved a 100% return in less than six months to win Minervini’s 2010 Triple-Digit Challenge and has since delivered consistently superior trading performance.
The book is organized into eleven sections, covering critical aspects of trading:
- Introduction
- Stock Selection
- Position Sizing
- Technical Analysis
- Fundamentals
- General Market
- Entry Criteria
- Risk Management
- Trade Management
- Psychology
- Final Thoughts
Key concepts emphasized throughout the book include:
- Discipline and Risk Management: The masters consistently highlight the importance of cutting losses, protecting profits, and managing position sizing to avoid major setbacks. Minervini’s top rules include “Think risk first” and “Keep losses small”.
- Focus on Price and Volume: While fundamentals are considered, the core emphasis for momentum traders is on the price action and volume characteristics of stocks. Many stress that market action should guide decisions, not personal opinions or external news.
- Concentration over Diversification: To achieve “superperformance,” the traders advocate for concentrating capital in a few high-conviction positions rather than diversifying broadly, while meticulously managing the downside risk.
- Learning from Mistakes: All four traders underscore the importance of self-analysis and learning from both winning and losing trades to refine one’s method and psychology.
- Patience and Adaptability: While core strategies remain constant, adapting to current market conditions, such as choppy markets, by trading smaller or sitting out, is crucial.
Ultimately, “Momentum Masters” conveys that successful stock trading is a journey of continuous learning, self-discipline, and adapting timeless market principles rather than seeking “magic formulas.” It encourages traders to delve deep into the realities of market behavior and to continually refine their approach based on concrete results and disciplined execution.
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