The stop loss is the absolute maximum you're willing to lose — not the target.
If price action speaks negatively, Minervini doesn't wait for the stop to be hit.
Exit is an active decision, not a passive one.
Early Exit Signals
- Close at the day's low after a breakout
- Heavy volume down — signals institutional selling, not profit-taking
- Breakout fails to hold the buy point even intraday
- Same-day reversal on breakout day (bought high, closed low)
The Logic
If the evidence that made you buy has already reversed, why wait for the stop? The stop exists for unexpected moves. When weakness is visible and logical, the exit is a conscious decision — not a waiting game.
Result
Instead of −7%, exit at −2% or −3% — preserving capital for the next setup. Across dozens of trades, this makes an enormous difference to the overall outcome.