Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market

Abstract

One of the best sections of the book is Mark’s description of the life cycle of a growth stock. You get a fundamental and technical picture of where a stock is along the different phases of its move from the start in phase 1, to the acceleration of earnings and price performance in phase 2, to the topping process in phase 3, to the trip back down in price as earnings slow in phase 4. He shows this not only with price charts but with tables of earnings and sales to show what is happening fundamentally as a growth stock moves over time. In the last two chapters of the book, which you should probably read first, Mark discusses risk management. This is vital because so many investors seem to get into the right stocks but don’t know how to take a profit or when to sell as a position goes against them. He discusses the psychological factors that prevent most investors from cutting a loss. Can you believe that an investor of Mark’s stature is right only 50 percent of the time and has still made a fortune! That is due to his use of risk management