Trading U.K stock market using Mark Minervini strategy

Friday, Dec 14 2018 by
27

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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71 Posts on this Thread show/hide all

herbie47 7th Jan 52 of 71

I notice Pearson (LON:PSON) has hit a new 52 week high.

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bluemosaic 7th Jan 53 of 71

In reply to post #433308

What L2 feed do you use?

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herbie47 8th Jan 54 of 71
3

2 more to watch are Elektron Technology (LON:EKT) and Sopheon (LON:SPE).

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unwise2 8th Jan 55 of 71
1

In reply to post #433513

I use Quotestream, you can subscribe directly or via Interactive Investor in the U.K

https://quotestream.com/

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unwise2 9th Jan 56 of 71
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 71
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 Thu 12:00pm 58 of 71
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 Thu 2:45pm 59 of 71

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 Thu 2:48pm 60 of 71
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 Thu 3:52pm 61 of 71

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 Thu 3:57pm 62 of 71

In reply to post #434833

The "edit" post option has disappeared.

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HumourMe Thu 4:01pm 63 of 71

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 Thu 4:09pm 64 of 71
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 Fri 3:12pm 65 of 71
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 Fri 3:40pm 66 of 71
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 Mon 10:06am 67 of 71
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 Mon 12:31pm 68 of 71
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 Mon 5:02pm 69 of 71

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 Mon 5:59pm 70 of 71
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 Tue 1:34pm 71 of 71
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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