Minervini’s Trade Like a Stock Market Wizard is built on one idea: buy strong stocks that have already proven they’re strong, at the moment supply dries up.
The trend template
Before he’ll look at a chart, it has to pass a filter — price above the 150 and 200-day averages, the 150 above the 200, the 200 trending up, price well off its 52-week low and within reach of its high, and relative strength in the top quartile of the market.
It is deliberately restrictive. The point is to spend attention only on stocks already doing what you want them to do.
The volatility contraction pattern
The setup itself: a series of pullbacks, each shallower than the last, each on lighter volume. Sellers are progressively exhausted. The entry is the break out of the final, tightest contraction, ideally on a volume expansion.
Risk first
The part most readers skim. Minervini’s rules are about surviving being wrong — cutting losses at a fixed percentage, sizing so no single trade can damage the account, and being willing to be entirely in cash.
What travels to India, and what doesn’t
The technical framework travels well. The screening does not, directly — our market has fewer genuinely liquid names, and relative strength rankings are noisier in the mid and small-cap space where spreads are wide.
Your own take goes here — which parts you actually use, with an example from a trade you took.