Think & Trade Like a Champion by Mark Minervini Summary

Think & Trade Like a Champion outlines Mark Minervini’s proven trading strategies, emphasizing disciplined risk management, stock selection, and psychological mastery. The book distills his SEPA® methodology (Specific Entry Point Analysis), offering rules for buying, selling, and managing positions, alongside real-world examples and case studies. It also addresses common pitfalls and provides actionable steps to build consistency in trading.

This book is ideal for active traders and investors seeking systematic approaches to stock market success. Beginners gain foundational strategies like position sizing and trend analysis, while experienced traders benefit from advanced risk-management frameworks and Minervini’s psychological insights. It’s particularly valuable for those interested in momentum trading or mastering Minervini’s SEPA® system.

Yes, the book is highly recommended for its practical, no-fluff advice. Readers praise its actionable rules, chart examples, and emphasis on trading discipline. However, some note overlap with Minervini’s earlier work, Trade Like a Stock Market Wizard. If you’re new to his methods, this book offers a comprehensive roadmap; existing fans may still find refined insights.

Key concepts include:

• SEPA® Methodology: A 5-step process for identifying high-probability trades using technical and fundamental analysis.
• Risk Management: Rules like the “3-to-1 reward-to-risk ratio” and pre-defined stop-loss levels.
• Trading Psychology: Techniques to avoid emotional decisions, including post-trade analysis routines.

While overlapping with Trade Like a Stock Market Wizard in core principles, this book delves deeper into mindset challenges, position-sizing formulas, and real-time trade examples. It also introduces updated frameworks like the “PHD” (Price, Volume, and Momentum) criteria for stock selection.

SEPA® (Specific Entry Point Analysis) is Minervini’s proprietary system focusing on high-momentum stocks with strong earnings growth and technical breakouts. It combines trend analysis, volume patterns, and precise entry/exit rules to maximize upside while limiting downside risk. The strategy emphasizes patience, letting winners run, and cutting losses swiftly.

Critical rules include:

• Never average down: Avoid adding to losing positions.
• Sell into strength: Exit partial positions during price surges.
• Prioritize capital preservation: Limit losses to 7-10% per trade.
• Follow the trend: Trade in sync with broader market momentum.

Yes, the book features over 50 charts and case studies illustrating Minervini’s trades, including entries, exits, and post-analysis reflections. Examples like Cisco Systems in the 1990s and recent momentum stocks demonstrate how SEPA® applies across market cycles.

Some reviewers note repetitive content from Minervini’s earlier works and a heavy focus on U.S. equities. A few criticize the lack of backtested data for SEPA®, arguing it relies too much on anecdotal success. However, most agree the book’s actionable advice outweighs these limitations.

The book’s principles—like focusing on relative strength and sector leadership—remain relevant in 2025. Traders can adapt SEPA® to identify AI-driven tech stocks or green energy leaders, provided they adhere to strict risk parameters and update watchlists daily.

The PHD framework (Price, Volume, and Momentum) filters stocks using:

• Price Action: Sustained uptrends with higher highs/lows.
• Volume: Rising volume confirming price moves.
• Momentum: Outperformance relative to sector and index benchmarks.

He stresses pre-planning every trade, maintaining a trading journal, and conducting weekly performance reviews. Techniques like “mental rehearsals” for handling losses and visualizing success help build emotional resilience. The book also warns against overtrading and revenge trading.