The 50/80 rule in the stock market by Mark Minervini – (An Indian Perspective in current market trends-2022)

“Once a secular market leader puts in a major top, there is a 50% chance that it will decline by 80% and a 80% chance that it will decline by 50%” – Mark Minervini

The above statement is not some random assumption but is a fact as per Mark. Every active trader or a long term positional investor should be aware of this insidious probability of a stock that has been a market leader, which can go down up to 50-80% down once it has made a major top. 

The above statement would have been published some 10-15 years back, but still it has a 100% relevance and it will have the same relevance in the years to come. In this article we will see how this rule has played out in the Indian market in the recent fall of Nifty after making a major top in Oct 2021. Read more...