Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market: How to Achieve Superperformance in Stocks in Any Market

by Mark Minervini

Big earnings will eventually attract the big players and create the conditions for big price performance. The length of time a stock remains in stage 2 depends on the company’s fundamentals, specifically, how long it’s able to continue its pattern of strong earnings growth. Some companies can keep this up for quite a stretch. To take advantage of this phenomenon, you don’t need to guess or predict, and you don’t have to settle for less than stellar performance in terms of fundamentals. Look for stage 2 uptrends supported by strong earnings growth, and you will dramatically increase your chances for attaining big success in stocks. Sometimes a company with a rocketing stock price may not be making much money, but the rising price means that investors are hoping that it will be profitable in the future. However, three out of four times, the very best performers will show meaningful earnings increases in the most recent quarter from the same quarter a year earlier. You should demand not only that the most recent quarter be up by a meaningful amount but that the past two or three quarters also show good gains.