Recently, I've seen many discussions about trader Mark Minervini, and it made me realize that my understanding of this master is still superficial. This guy's track record is truly incredible—155% and 334.8% in the U.S. Trading Championship, and even in his worst year, he still made 128%. Throughout his trading career, he's almost never lost money. It's said that he only lost in one quarter, and it was less than 1% of his capital.

What's most impressive is that Mark Minervini never hides his methods. He has stuck to the same trading system for many years, and in 2021, he even participated in a major competition specifically to prove that this approach can make money regardless of market conditions. This confidence is backed by real results.

He treats trading as a serious business, with the core idea of having a detailed battle plan. His method is called SEPA, which stands for Specific Entry Point Analysis Strategy. Simply put, it involves finding stocks with strong upward trends in both fundamentals and technicals, entering at the right time and place, and using strict risk control to profit.

The first step is screening. Mark uses TradingView filters to automatically select targets that meet his trading criteria. He has a trend master list with four core conditions: the price and 50-day moving average must both be above the 150-day and 200-day moving averages, forming a bullish alignment; the 200-day moving average has been rising for at least a month, ideally four or five months; the current price is at least 25% above the 52-week low, with over 100% being even better; and the current price is no more than 25% below the 52-week high, with closer to new highs being preferable. This filtering can roughly eliminate over 90% of the noise.

The second step is waiting for catalysts. New product launches, regulatory approvals, technological breakthroughs, or major contracts are key drivers of stock price movement. Mark compares similar strong stocks to forecast future trends, then focuses only on the most promising targets.

The critical third step is waiting for the VCP pattern to appear. VCP stands for Volatility Contraction Pattern, a consolidation phase where price swings and volume gradually shrink. In a strong trend, the longer the consolidation, the larger the subsequent price move. Mark pays special attention to two types: first, the three-bottom VCP, where the lows keep getting higher, forming a classic triple bottom. This pattern usually indicates a continuation of the uptrend, with volume and price rising together on a breakout. When setting stop-losses, it’s best not to place them near the last bottom; instead, set them at the lowest point of the breakout candle or below the second low. Second, the cup-and-handle pattern, which starts with a U-shaped cup, followed by a narrow consolidation in the handle. The key is to identify the breakout from the handle with increased volume.

His 2021 example of buying PAG is classic. The stock pulled back in May, then surged in July to form a cup, and in August, it oscillated within a channel forming a cup and handle. Mark entered on September 1st when volume surged on the breakout, and the gains were substantial. After that, the price never returned to that level.

Finally, there is a strict exit mechanism, which Mark has summarized from years of experience. He can judge whether the market is strengthening or weakening and has sell signals accordingly, even recognizing early warnings before a crash. The success of his entire system relies on this meticulous risk management.

Looking at Mark Minervini’s trading logic, it’s essentially about replacing emotional decisions with a systematic approach. It’s not about buying at the lowest price but entering when the price is right. This way of thinking is worth learning for many traders.