Trading U.K stock market using Mark Minervini strategy

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14th Dec '18 by unwise2

1516 comments 109004 reads

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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Unwise2

Premium Member

1516 comments

unwise2

22nd Jan '19

Has anyone found a reliable source for all IPO's that have listed in the past 7-14 days?

The London Stock Exchange website has a webpage with last issues 7/30 days but it is very unreliable. The only consistent source of information I have found has a time lag of approx one month, I would like to follow IPO's sooner than that.

Benson212

22nd Jan '19

I have found this frustrating too. You can screen for IPO's (link below) but this also has a 1 month lag.

https://www.stockopedia.com/sc...

It looks like Stockopedia only makes a stock screenable once it receives all the relevant data from its providers.

However, there is a crude way of doing this on Stockopedia... instructions are:

Home >>> Risers and Fallers >>> on the left hand side, click "Price Gainers Today" >>> sort the list by clicking on "Mkt Cap £m"

Some stocks with a dash (-) market cap are IPO's with less than 1 month price history. Repeat the exercise for "Price Fallers Today" . I then add these to my IPO watchlist portfolio, until I see them appear in my IPO screen. Repeat daily

Recent examples include: Dev Clever Holdings (LON:DEV) (Dev Clever Holdings) and £0F8A (Ceconomy AG - this is a preference share).

Hope this helps!

unwise2

23rd Jan '19

Thanks for the suggestion, it seems a roundabout way of getting information. I recently missed Litigation Capital Management (LON:LIT), it setup a great IPO base and broke out late on Friday, I only noticed it late Monday.

Benson212

23rd Jan '19

No problem. I woke up bolt upright last night, as I thought of another way to get the information!

You can use the following website, which provides a free, real-time RNS feed for all company/stock exchange announcements on LSE/AIM.

https://www.investegate.co.uk/...

You can then CTRL+F and search for all announcements which contain key words like 'Admission', 'IPO' or 'Initial Listing'. Here are some screenshots of the RNS headline titles to look for:

You can then add these to a watchlist in Stockopedia, until it appears on the IPO screen.

This might be less tedious than my first suggestion. There is a daily RNS announcement called "Stock Exch Notice" which details all new admissions, block listings etc. However, new listings are not always obvious and don't always coincide with the first day of trading.

unwise2

23rd Jan '19

Great idea, I have been using investEgate for more than a decade but I never thought of using it to search for IPO's.

You can also use the built in keyword search as well as Ctrl + F

Benson212

23rd Jan '19

Energean Oil & Gas (LON:ENOG) is now on my watchlist as it looks like it's forming a Cup with Handle pattern. Emerged from a VCP in early September. Stock has great relative strength, especially in such a weak market. I will take out a small position if the stocks closes into the buy zone.

5c48a0315533fChart-energean-oil-gas-2302

unwise2

24th Jan '19

I have taken a look at Energean Oil & Gas (LON:ENOG), the handle is a bit too deep for me (78p deep vs 681p top). I see you plan to get round this by buying once the recent downtrend is broken instead of a breakout from the top of the handle.

Tortoise investor

24th Jan '19

I think Creightons (LON:CRL) looks like a possible MM style share. Fundamentals: small cap, very reasonable PE ratio, good growth coming through. Technicals: above 50 & 200MA, near 52W high, base arguably forming.

Howard Adams

24th Jan '19

Hi

If you are interested this is a Piworld Vid of Nov 2018n results for Creightons (LON:CRL).

https://www.piworld.co.uk/2018/11/23/creightons-crl-h1-results-november-2018/

I hold tiny holding as its only £19m Mkt Cap. but based on the content of the presentation it seems there is growth down the line through investment into extra production capacity.

I do not think it will set the world alight but I sensed it was a good down to earth management team.

I particularly liked the presentation from the Marketing Director. She seemed very solid and if the production side keeps apace with her then I think this will be a nice holding for a little while.

Regards
Howard

Rusty2

24th Jan '19

Fevertree Drinks (LON:FEVR) is almost up to the 200MA now, up nearly 15% on the day after a positive trading update.

When would it meet the Minervini criteria?

unwise2

24th Jan '19

When would it meet the Minervini criteria?

Have you not read either of his books?

Rusty2

24th Jan '19

No.

brballs

24th Jan '19

There are many criteria it will need to meet first such as 50MA>100MA>200MA, as well as a Volatility Contraction Pattern. I'm afraid FEVR is nowhere near a Minervini stock yet.
While I'm not a religious practitioner, I highly recommend both of his books even with regards to risk management.

Rusty2

24th Jan '19

Thanks, I had forgotten about the VCP. I was going to buy his latest book but it was only available on kindle in the UK for some reason.

I see he has bought PYPL, that does not seem to meet all his rules?

unwise2

24th Jan '19

Herbie,

Before you commit real money to trading using Mark's method I strongly recommend you buy Mark's first book. I have read many books on investing/trading in the past 18 years, Mark's is the best by a long way. It is very information dense and would be cheap at ten times the price.

I have read it 3 times and parts of it more than that. I have the hardback version, I don't know how the charts look on Kindle.

The second book is excellent but covers some of the same ground.

unwise2

24th Jan '19

5c49ecab0d892Chart-burford-capital-24020

I am noticing several stocks have formed a cheat/low cheat recently, another example is Burford Capital (LON:BUR). It broke out today, I have taken a small inital position.

I know the 50 day is below the 200 day but I have seen Mark put stocks on his watchlist like this when he wants to buy on a low cheat/cheat provided the 200 and 150 are still trending up and the 150 is over the 200.

mmarkkj777

24th Jan '19

Hi Unwise,

I have to say I agree with you 100% about Mark M's books. I am 3/4 the way through the first one and I can honestly say it is altering my whole perception and approach to this game.

No better investment in time for a trader. First class.

Rusty2

24th Jan '19

Thanks, yes I might buy his first book. I already hold Burford Capital (LON:BUR) have had it for over 3 years, yes a lot shares have similar pattern, dip down end of last year and then the recovery this year. Fevertree Drinks (LON:FEVR) I did hold have sold today as up nearly 40% in the last few 4 weeks. I have an interest in Minervini but still not sure it's totally right for me, I have some reservations.

unwise2

24th Jan '19

I have an interest in Minervini but still not sure it's totally right for me, I have some reservations.

There are several different methods/strategies that can make money in stock markets. The most important thing is you pick one that suits you personally and you stick to it in good and bad markets.

If you keep changing styles the market will cut you to pieces.

Just make sure whatever method you end up picking has a long proven track record.

Rusty2

24th Jan '19

It takes time and until recently we have not had a bad market for a long time, I see some of the guru screens that had performed well took a mauling last year. I believe it took Minervini 7 years before he started to make a profit. My main problem with Minervini is it is so short time frame, it is almost day trading, with the high trading costs on small amounts in the UK it will impact profits, as others have said it seems to work better in the US markets. The other concern even with all his rules he says his success rate of picking winning shares is only 50/50.

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Trading U.K stock market using Mark Minervini strategy

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Unwise2

1516 comments

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