A quick Google search turns up dozens of trading methods and strategies, and each one has amassed a collection of passionate followers who are thoroughly convinced that they know the best way to invest.
Each method has at least one champion who has realized tremendous financial success, and it’s tempting to pay hundreds of dollars to join private courses that promise to show how that success can be duplicated.
Of course, the truth is that most traders lose money – particularly when they are just starting out. Whether because they are not adhering to their chosen strategy’s best practices or they don’t have the resources to execute the types of trades that make money, the bottom line is that trading is a tough business.
What kind of traders make the most money? The answer has little to do with day trading vs. long-term investing. Success comes down to choosing a strategy that is realistic based on available resources and investing goals, as well as having the patience and discipline to create a plan and stick to it, regardless of market volatility.
Two of the world’s best traders did exactly that. Oliver Kell and Mark Minervini don’t have any special insight into the market. Still, they built massive fortunes through careful attention to selecting and executing effective trading methods.
They had the discipline to follow through with their trading plans no matter what obstacles they encountered, and they were so successful that they were recognized as Trading Champions in the annual United States Investing Championship.
What did these two champion traders do right? How did Oliver Kell make his money? What is Mark Minervini’s strategy? And can their success be duplicated by everyday investors?
Who Is Oliver Kell?
For Oliver Kell, the stock market is a family business. His father was a market maker with the Pacific Exchange, and he was the first to introduce Kell to the world of trading.
As soon as he could, Kell got into the market himself. He started his career as a day trader and made a name for himself by using sophisticated international arbitrage strategies to deliver strong returns. Soon, he was selected to execute for some of the most valuable clients in the business.
Oliver Kell won the US Investing Championship in 2020 after beating the competition with a 941.10 percent annualized return. He believes that the stock market is for everyone – not just insiders. Kell’s goal is to give “the little guy” the tools and resources necessary to take on Wall Street – and win.
Today, Kell’s full-time job is trading, but he makes training new traders a priority. His original portfolio was entirely self-funded, and he is confident that others can find similar success if they are willing to put in the time and effort required to learn how to trade effectively.
What Is The CAN SLIM Method?
Oliver Kell has developed his own unique strategy over time, but the foundation of his technique is based on the CAN SLIM method. The CAN SLIM method was made famous by one of history’s greatest investors, William O’Neil, for its accuracy in identifying growth stocks with strong performance potential.
CAN SLIM is an acronym for the seven factors that drive stock returns:
Current Quarterly Earnings
New Product, Service, or Leader
Supply and Demand
Leader or Laggard
Essentially, Kell fine-tuned the CAN SLIM method for use in his own trades. As his Trading Champions status suggests, Kell successfully created a highly effective formula for generating returns.
He outlined his methods in his book Victory in Stock Trading: Strategies and Tactics of the 2020 U.S. Investing Champion, which has been considered a must-read for traders since it was published.
When Did Mark Minervini Start Trading?
Mark Minervini has been a trader for nearly 40 years. He began his career in 1983, and it quickly became apparent that he had a particular talent for navigating the stock market. In his worst year, he saw a gain of 128 percent, and his average annual return was reported to be 220 percent.
Minervini won the US Investing Championship in 1997 by growing his portfolio by 155 percent – almost twice the gains of the second-place winner. That year, Minervini participated in the championship by investing $250,000 of his own money.
His goal was to demonstrate the effectiveness of his SEPA trading methodology. While other participants focused on complicated strategies involving options and highly leveraged futures, Minervini’s portfolio consisted of long stock positions – and nothing else.
Minervini entered the US Investing Championship again in 2021 and delivered record-breaking results using the same SEPA trading methodology.
This time, he competed in the $1 million category – still using his own money – and achieved an annual return of 334.8 percent. The previous record was George Tkaczuk’s 119.1 percent gain in 2020.
Mark Minervini is a best-selling author, and he offers personal investing education through his online platform, Minervini Private Access.
His books and course materials are designed to simplify complex trading concepts, so anyone can apply the techniques to grow their portfolios. Minervini’s most popular titles include Think and Trade Like a Champion and Trade Like a Stock Market Wizard.
What Is The SEPA strategy?
Mark Minervini’s signature SEPA strategy involves examining individual companies for defined signals that indicate inefficient pricing is inevitable.
When these stocks have been identified, Minervini’s process includes determining the exact point at which entry is perfectly balanced between low risk and high rewards.
SEPA is an acronym for Specific Entry Point Analysis. When it works, which is most of the time, the stocks appreciate in value just after purchase. That means impressive returns for Minervini, his clients, and his followers.
What Do Oliver Kell and Mark Minervini’s Trading Strategies Have In Common?
The CAN SLIM and SEPA strategies don’t guarantee results, but when precisely applied, they increase the likelihood of investing success by a significant margin. Though there are a number of differences in the techniques, there are common principles.
Both methods wait for market confirmations to make trades – they don’t attempt to forecast where markets will move. That is contrary to many trading strategies that attempt to predict coming changes and time trades accordingly – e.g., buying dips in the hope of bounces.
Both methods insist on cutting losses quickly, which requires a certain level of discipline. Conversely, both require traders to ride winners until technical levels are violated. In other words, Kell and Minervini don’t trade on emotion, which may be the most significant factor in their decades of success.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.