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

I tend to let individual stocks lead me into an industry group or sector, taking more of a bottom-up approach as opposed to top-down. I have found that more often than not, the best stocks in the leading groups advance before it’s obvious that the group or sector is hot. Therefore, I focus on stocks and let them point me to the group. Not always, though. I still stay in touch with what is happening on an industrywide level, and if I see something that attracts my interest, I look at the stocks that make up the industry and sort them according to my criteria. I look at the strongest stocks first: the ones that have the best earnings and sales, are closest to a new high, and show the greatest relative price strength versus the market. This is where you find the real market leaders.

Very interestng