Mark Minervini

Repeat favorable bets often to compound the edge; more iterations of a positive expectancy improve returns.

If you have a positive expectancy, increase the number of independent opportunities to realize that edge over time.

Profitability depends on average reward relative to risk combined with win rate, not solely on being right more than wrong.

Average profit per trade computed from win rate and win/loss sizes; positive expectancy yields long-term profit.

Trying to buy absolute lows or capture peaks is unnecessary, rarely possible, and not the optimal focus for traders.

Contain losses quickly while allowing gains to develop so the upside is captured without excessive drawdown.

Make a trading approach that you can repeat consistently; consistency is the primary goal.

Modeling trades as repeated independent bets with asymmetric payouts to evaluate long-term profitability.

Keeps losses contained so winners can outweigh losers under a favorable R:R

Achieves a 3:1 reward-to-risk ratio when paired with a 5% stop, creating positive expectancy

Compounding the edge by taking many independent positive-expectancy bets increases returns

More trials make expected profits more likely to materialize via the law of large numbers

To determine true profitability rather than relying on raw reward-to-risk or win rate alone

Capturing peaks/lows is nearly impossible and unnecessary for long-term profitability