TAILIEUCHUNG - Stock Market Wizards Part 5

The Ultimate Trading System. Steve Lescarbeail's systems are the next best thing to a daily subscription to tomorrow's Wall Street Journal. Lescarbeau invests in mutual funds. His goal is to hold them while they are going up and to be in a money market fund while they are going down | MARK tion from marginal performance to spectacular success. In his own case Minervini found that by capping the maximum loss on his trades he could dramatically increase his overall returns even after allowing for winning trades that would have been eliminated by this rule. This discovery allowed him to make a lot more profit with much less aggravation. Other traders and investors may find that a similar comprehensive analysis of their past trades reveals patterns that point the way to improve their own performance. Interestingly the methodology that Minervini eventually developed was precisely the opposite of his instinctive approach as a novice which was buying low-priced stocks that were making new lows. Success required not merely the adaptability to modify his initial approach but also the flexibility to acknowledge that his original ideas were completely wrong. The lesson is that early failure does not preclude long-term success as long as one is receptive to change. STEVE LESCARBEAU The Ultimate Trading System Steve Lescarbeau s systems are the next best thing to a daily subscription to tomorrow s Wall Street Journal. Lescarbeau invests in mutual funds. His goal is to hold them while they are going up and to be in a money market fund while they are going down. He times these asset transfers with such precision that he more than triples the average annual returns of the funds he invests in while sidestepping the bulk of their periodic downturns. During the five years he has traded Lescarbeau has realized an average annual compounded return of over 70 percent. As impressive as this may be what is truly remarkable about his track record is that this high return has been achieved with extraordinary risk control His worst equity decline from a month-end peak to a subsequent month-end low was a minuscule 3 percent. His consistency is also astounding He has been profitable in 91 percent of all months and his annual return has exceeded 50 percent every year. For .

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