Trading U.K stock market using Mark Minervini strategy

Friday, Dec 14 2018 by
46

Mark has been interviewed by Stocko a couple of times and from some of the comments on various threads there appears to be a few of us using his methods to trade the U.K stock market. I thought it would be useful to have a dedicated thread where we can discuss how well its working.

Personally I have been in cash at least 50% since the end of May and at 95-100% since early October. Getting out of stocks as they roll over has protected me from any real damage.

I'm struggling to find many setups I want to buy so I am developing my "sit out power"

How is everyone else doing?



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395 Posts on this Thread show/hide all

unwise2 9th Jan 56 of 395
1

A few more shares have broken out of cheat areas in the past 3 days so I have taken some positions. I am still only dipping my toe in the water, total exposure is just over 10%.

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herbie47 9th Jan 57 of 395
2

Biome Technologies (LON:BIOM) looks like is breaking out, the wide spread puts me off and it's not in profit yet but maybe worth a punt?

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BH1991 10th Jan 58 of 395
2

In reply to post #434253

Share is too illiquid for short term trading. Very difficult to contain a loss between 5%-8% if this moves against you.

Furthermore, it's +33% from its recent swing low (low of recent pullback) and now at a key resistance point near it's 52 week high. The probability of short term profit taking is high.

However, if this share was liquid, I would have bought on 03/01/2018 as it broke above the 50DMA. The stock is making a parabolic thrust so I would trade a 'green to red' move on the MACD histogram to lock in short term profits. 

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herbie47 10th Jan 59 of 395

In reply to post #434678

Thanks. I did do a dummy deal and the most I could buy was 150 shares in one transaction, even that was difficult, at first 90 was the largest deal. So yes very illiquid and the spread is wide at over 7%. So probably one I will not buy.

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unwise2 10th Jan 60 of 395
1

5c375b2c7d6cfChart-greatland-gold-100201

I think Mark would be horrified to know I have used his method on a share under 2p! At least the Mcap was circa £60m and fairly liquid, I took a very small position in Greatland Gold (LON:GGP) when it brokeout above 1.82p on the 7th.

It setup a classic low handle/cheat.

Anyone know how I can shrink the above chart?


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HumourMe 10th Jan 61 of 395

In reply to post #434813

Anyone know how I can shrink the above chart?

If you click on the image, 'edit' and play with the blue box you can shrink away.

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unwise2 10th Jan 62 of 395

In reply to post #434833

The "edit" post option has disappeared.

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HumourMe 10th Jan 63 of 395

In reply to post #434843

The "edit" post option has disappeared.

Think we only have 1/2 an hour from the last edit. Next time though!

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unwise2 10th Jan 64 of 395
3

5c376dbe000f7Chart-greatland-gold-100201

Hopefully this will show the whole Greatland Gold (LON:GGP) chart and where I marked the breakout/purchase.

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ISAallowance 11th Jan 65 of 395
1

Serica Energy (LON:SQZ) looks like it is forming a handle on declining volatility and volume, and is above its moving averages.  Or would the traders regard the buy point as having already passed on the 7th from the low handle?

5c38b19be70e6Chart-serica-energy-1102019

Also, does anyone have any tips for assessing volume during the day?  I can easily see where a breakout on volume occurred in retrospect, but I find it very difficult to assess volume whilst the price is moving up during the day.


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unwise2 11th Jan 66 of 395
4

In reply to post #435313

Serica Energy (LON:SQZ) did set up a buy point (cheat/low handle) at 126p but it may set up another around the old high.
Mark has been asked several times about assessing volume on a breakout day, his response has been that he is prepared to buy without confirmed high volume, provided the rest of the chart looks right and the preceeding days have lower than average volume.

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mrosbiston 14th Jan 67 of 395
3

In reply to post #435313

he also suggested taking the volume in the first hour as a gauge - where if the volume in the first hour is 50% of the 10 day or 30 day average daily volume, this can indicate a high volume day. he said it is a risk and depends how aggressive you want to be.

my experience is this is more reliable in the US where volume is more evenly dispersed through the day.

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ken lowes 14th Jan 68 of 395
2

In reply to post #427508

Hi Herbie
Just got to this thread and I would suggest that the first rule of entry is that the market as a whole has to be going in the right direction or at laest the sector/industry.
ken

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herbie47 14th Jan 69 of 395

In reply to post #435988

Fair enough but I will quote Minervini as this is about his trading "What if market indexes were never created? No Dow 30, S&P 500, Russell 2000, etc.. How would you trade? That's precisely how you should approach stock trading. Remove all indexes from your screen, turn off CNBC and only trade the stocks. Do you think you can do it?"

Minervini has been buying some stocks, not very many. Same for me, I have bought a few but not very many and I'm more in cash and gold than normal.

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ken lowes 14th Jan 70 of 395
3

In reply to post #436233

Cant say I disagree with the "dark room syndrome" but obviously you are giving yourself a better chance if the market is going with you and at the end of the day no one says "you have to be invested". As I have mentioned previously sometimes it is better not to lose money and I think we are in that position now. On the otherside assuming the bear is in play going short may be the right decision providing your not too greedy. Whilst I am on-- 3IN behaves more like a structured product with steady returns. I have liooked at it as it came up on my screen a few days ago. It has only risen 70% in twelve years, but fell 30% in the 2008 bear so I don't think the risk reward is in our favour at the moment.

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herbie47 15th Jan 71 of 395
2

In reply to post #436258

To be honest I do find Minervini comments contradictory at times, if he does not look at the market indexes why is he commenting on them so often? For me Minervini trades too often, average holding time is only 2-3 weeks and he seems to be trading many times a day. I would rather hold for longer periods. His buying success does not seem good if what he says is true.

Warren Buffett says he ignores what the markets are doing.

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mmarkkj777 17th Jan 72 of 395
4

In reply to post #436668

Hi Herbie,

Warren and Mark are like chalk and cheese. Both have different techniques and both work for them.

Warren is a long term investor, who only usually sells if he feels management has let him down in some way. Mark is pretty much an out and out trader, who will only buy a stock if he thinks its about to immediately rise higher and will sell any stock not rising, with a high churn when the conditions (i.e. market) is favourable. He has often made 100% plus in a year.

I guess we should all find the style that we are comfortable with. That can easily be somewhere between the two polar opposites of these two successful stalwarts, who's second greatest gift is probably that they like to share their knowledge.

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unwise2 17th Jan 73 of 395
1

Having looked at nearly 200 stock charts today it looks like there are a few potentially setting up "cheat" buy points. Bushveld Minerals (LON:BMN) has just broken above 42.2p, I have taken a small position.

Until I make any real gains I am playing "small ball".

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mmarkkj777 17th Jan 74 of 395

In reply to post #437528

Hi Unwise2,
Thanks for the heads up. I'll take a look at BMN.

I note with interest that Mark Minervini is now back in the market (in a small way) (small for him,that is :-) ).

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herbie47 17th Jan 75 of 395

I notice the Dow Jones is up about 10% since Christmas.

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