Customer Reviews

How to Make the Stock Market Make Money for You

5 star:		(45)
4 star:		(10)
3 star:		(10)
2 star:		(3)
1 star:		(45)

 

 

I'm almost ashamed of myself for not giving this book a higher rating.

Let me give you some background. This book was written in 1966. Parts of the book are hard to understand because it is very technical. I found myself reading this book three times so far, especially when the market is down. The chapter on stocks that resist general market trends is very instructive. I have read that chapter many times.

Here's the downside to all of this. Yes, I have made money based on his methods, and I firmly believe that anyone can. However, there are several issues involved here. One, you have to be realllllly patient. This is not some silly get rich quick scheme. This is a very standard buy and hold strategy like you've already heard about before. Another issue too that is very important that many people overlook is that when a stock is in a down period for a long period of time, don't buy it until it shows signs of life (breaking the resistance). This is why people lose money. The book doesn't really cover that subject very well, but the monthly newsletter The Investolator does. The problem of course is that after you buy this book, then you want or need to subscribe to the newsletter. The monthly newsletter is very informative and fills in a lot of the missing gaps particularly about when to enter a trade. Quite honestly, as much as I like the book, the monthly newsletter is a necessity for me. I can already hear the howls across the land. Yes, you've got to spend more money which makes many people wonder. I can say without reservation that the book combined with the newsletter is an excellent investment. I've been a subscriber since October of 1998. It's worth it.

Allow me to give a couple of examples. I have watched several stocks based on this book and the newsletter. Two are very noteworthy. One is CN (Calton) and the other is CCUR (Concurrent Computer). I watched CN for a long time hover around the 1 1/4 area and then it broke its resistance. As the months went by I think it hit over 6 or 7. Now it's back down again. This was quite an impressive chart pattern. CCUR was another. The newsletter recommended purchasing at a break above 5 1/4 I think it was. After it broke above that price, it then dropped down for a bit and then took off eventually going over 24. The chart patterns for both stocks were exactly like the examples in the book. The problem is, people aren't patient. It's not a get rich quick scheme. You may have to wait for years for some of these stocks to take off, but when they do, tripling is not uncommon. CN went up something like 400% or 500%. One could have easily bought CCUR when it pulled back to 4 and sold above 20. This is not hindsight. This is based on the same chart reading as the book talks about. These particular stocks had their run up from the break in resistance to their top point in a matter of months. The key is, wait until the stocks break through their resistance first. If you want to know a good reason NOT to buy a stock, look at the monthly chart of MCX. It was in a down period for a long time and looked like a good buy at around 2 or so. As of now it still has not broken above its resistance. Many people probably bought thinking it was a bargain. It's now at about 3/4. The people who claim to have lost money using this system do so because they fail to wait until a stock has broken resistance. If you are unfamiliar with stock charts, so to bigcharts.com and look up the monthly charts of CCUR, CN and MCX. Another really important lesson in the book is his explanation of trading volume. I've never read a better explanation anywhere. In fact, I've never really read any explanation as to how daily and monthly trading volume as compared to the price of the stock means anything at all. After reading this book, it all makes sense.

I'm giving this book 4 stars because it's technical analysis is outstanding. I've never seen anything like it. No emphasis on P/E ratios and all the other hype that "educated" analysts claim make stocks move. The wild buying and selling public generally make the price of a stock move. I remember watching CCUR for a long time, and it wasn't until AFTER the stock tripled that analysts suddenly took notice. Have you ever wondered why people notice a stock after it has had a runup? That's when the gullible public starts buying, pushing the price even higher and then, just like the author says, everybody who bought in at the bottom sells out just at the height of the buying frenzy. This book is so on target, it's eery. As for the contents. There's lots of charts, and they are all monthly charts which means that he is focused on the long term. My recommendation is to "paper trade" for a few months or a year until you get familiar with it. Watch a group of stocks for a while. You'll notice the chart patterns start developing. You may have to wait a long time, but it's worth it. Even "educated" analysts tell you to hold stocks for years.

I'm sick of people reviewing this book who haven't started trading yet. Also, people who give vague results. I'm not one to give out personal information but I wanted to throw out a real example of a winning stock that I found using Warren's methods. I bought Repligen Pharmaceuticals in early Feb 2000. I think I paid about 5 bucks a share. (stock symbol RGEN) Today, (Sat. Feb 20) it's trading at 13 dollars a share. I realize people may think this is a fluke but I've seen the same thing happen on at least 20 other stocks that I just didn't have the money to get in on. Check the chart, find a reason why you couldn't have done the same thing.

P.S. If you can't find any charts go to any online trading site and use their free research charts.

As an experienced market technician and author of the book "Technical Analysis Simplified," I can state with some authority that Ted Warren's method of technical analysis is "head and shoulders" (no pun intended) above 98% of the other books out there that attempt to teach this subject. I have read nearly every book imaginable on market analysis, and this book displays a profound understanding of market machinations I have only found in one or two other titles. One of the things that struck me in reading Warren's book is that someone who cut his teeth on Edwards & Magee (the "bible" of technical analysis) would find himself having to unlearn much of what he was taught. Based on my experience, Ted's understanding of the markets was far superior to that of the anodyne Edwards & Magee, and his technique is more accurate. While Ted's method isn't the most advanced or the most comprehensive of technical methods, it certainly is one of the most practical and proven ways of profiting in the markets that I have come across over the years. This book comes with my highest commendations. P.S. If you haven't learned to view the market--as Warren advocates--as a battle of "manipulators" vs. the uninformed investing public, you probably aren't cut out for trading in the markets, anyway, and should avoid them altogether.

While Ted Warren's paranoia about stock 'sponsors' and 'manipulators' is probably off target, the overall idea of tracking trends in stock prices is sound. There are of course, insiders who take advantage of situations, but certainly not to the degree described in Warren's book.

If you get past those ideas and instead focus on the overall technical analysis of stock behavior you will start to see patterns. To get to this point, you need to look at more charts than he shows in the book. I use U.S. Charts,(yes I know it's a Ken Roberts company and it strikes a sour note with a lot of folks) simply because they are the best around. If you study the charts, you'll see the patterns Ted Warren talks about repeated over and over again. Paper trade these qualifying stocks and you really can prove to yourself that it works.

Personally, I use both the charts and fundamental news. I look for companies that qualify as purchase candidates and then I research them a bit to see if there's any outward signs of problems. Thus far, it has worked for me. In less than five months, I've increased the value of my portfolio by more than 40%. Of the stocks I've purchased using technical analysis, one is even with my original purchase price, one is below the original price and the rest have all been profitable.

The key to remember is to buy on 'the Breakout'.

Read his book, study the charts, paper trade your own stocks, buy on the breakout and sell when the upward trend is broken. It's simple.

In case you're wondering, I have no affiliation with the Ken Roberts Company, though I did get the Ted Warren book by ordering the course.

Incidentally, the book is overpriced (and so is the course).

Good Luck!

there has been a lot of very positive and very negative reviews on this book; however, there are some things nobody has considered. people are always looking for a "get rich quick" strategy. reality check. there is no such thing. and there is no such thing as "the one great way to make money". ANY way to make money is a great way, as long as you enjoy doing it. Ted Warren's strategy is not a bad strategy if he made money off of it. if anybody else made a profit off Warren's strategy, then it is a good one. "good" and "bad" are relative. one thing I advise is DON'T ever count on becoming rich without devoting your entire life to that one thing. look at Ted Warren. he became rich, did he not? well, did Ted Warren wait for the "ONE GREAT WAY TO MAKE MONEY"? No! he put making money above everything. everybody has the potential to become "super rich" EVERYBODY; but, the consequence is your entire life would be devoted to that one goal. what that means is you only have two options 1. achieve your goal and die. or 2. don't achieve your goal and die. once your mind set is as such, and you WANT to achieve your goal more than anything, you probobly will make it. most people are not willing to devote themselves that entirely, if most people were, then there would be no middle class. Ken Roberts is trying to create a lazy rich man. there is no lazy rich man. if you believe that you can become rich and only use ten minitues of your day every day, then you are sadly mistaken and you probobly don't really want to be rich bad enough anyway. If you are looking to become rich in the stock market, look at as many different strategy's you can find, do as much research you possibly can, go with your hunches, and if it gets you nowhere don't lose faith. Ted Warren's book is a good one to read, but certainly do not stop there.

I've had Ted's book now for about 10 years. Like any other "advice" book you don't want to follow it blindly but use common sense. When Ted says don't take a loss - he's mainly just trying to keep you from panicking when the markets fall. O'Neil says "take a loss if your stock falls 7% below original cost" - that's utter bull****. I bought one stock at $2 to watch it drop to $1 (didn't bail) to then watch it soar to $38!! I actually bailed at $22. You have to look for the basic trends that Ted's talking about - look in your local library and compare. The bases, triangles, etc are all there. Read his book 2-3 times, look for the patterns in current stocks, and you'll make money. I found additional patterns that he didn't mention or didn't explain very well - and made a lot of money. So use your own mind in addition to what you get out of the book. Happy Investing!

I have read Mr. Warren's book and put it to the acid test. I used TC2000 to scan over a thousand charts. The patterns repeat themselves over and over again and the result is the same. Never once did Mr. Warren imply that this was the Holy Grail. I can't argue with his success. If one were to look at a monthly chart of the DOW they would see that it essentially went side-ways from 1965 to 1982. Since then it has moved up at about a 30 degree angle. Countless stocks have done the same thing. Monthy charts tend to show the Primary Trend. This removes the short-term movements that cause most investors to sell at a loss(during shakeout period). As you get into short term charts the daily movements of the investment instrument increase. These secondary trends are where most people get scared(emotional) out of their investments. I do not imply that Mr. Warren's book is the Holy Grail of stock picking. It is simply one of many tools that one can use to find stocks that may offer a good return. I don't encourage anyone to take anything on blind faith. If you don't want to invest in a trading program like TC2000, Tradestation or AIQ, go to the library pick up a Value Line and do the research before you dismiss this book as snake oil. As a starting point look at the NASDAQ 100. Using Mr. Warren's first principle you will find that many of the stocks high priced stocks of today were at bargain basement prices. It would have been a counter-intuitive purchase for the conventional investor. Now calculate your gain if you had bought and held like he said to do (many of these stocks split quite a few times). Now look at a thousand charts. I would like to point out that AOL was penny stock not that many years ago. Look at the monthly chart of Microsoft, it too was a low priced stock in the accumulation stage. In closing I echo the thoughts another gentlman who reviewed this book. If you are not willing to do the research, don't write a review. I have seen person after person buy a stock in the distribution phase only to watch it fall and sell at a loss. Become an Investolator using all the tools available today and leave your emotions on the sideline and you will do well in your investing. Greed and fear destroy investors, and that is completely psychological. The success of your investing/trading has little to do with capitiliation.

It warms my heart that most people hate/fail to understand this book. Most do not have the patience to implement this. I've traded professionally for years and this blows everything else away. I regularly make 100-200% per year. You need to put money in at least 10 issues and I usually see about 5 to 10% of them go broke but the others..........watch out!

I am a new investor to the stock market. I have never bought a stock before in my life. I came accross the book and read it 4 times. After reading the book I opened an online account and started trading using Ted's principles. In 5 months my total portfolio is down 2%. Not good news for a first time investor. I have faith in the long term, wich is what Ted said over and over againg in his book. Patience is the key. In this day and age of jumping on a hot stock and riding the momentum, these timeless principles are not for speculators. I just wonder how many speculators make big returns in the long term. Buying low and selling high makes the most sense to me. How else, other than using a long range price chart do you determine if a stock is in a low or high price range. Certainly not reading the latest news on a company, or a earnings report. I bought my stocks in thier low range and am confident they will move higher. Just look at the charts as I have done for countless hours and you will find that Ted's principles are true. Even the big blue chips do it, hell for that matter I have never seen a stock chart who's price has not moved from a base to a high price and back down to start another base. How do explain this? I will make a prediction on these hot tech stocks of late. You are starting to see distribution take place. This will continue to occur for some time before the big fall begins to eventually start another base. They will never be real cheap againg like they were in the early 90's. Just what Ted's book say's happens to all stocks. Just you wait and see.

Ted Warrens' original manuscript was published in 1966 and the strategies still work today. I have personally met several people who have made fortunes using his strategies, as simple as they may seem to the overly sophisticated investor. In today's computer age it may sound hard to believe that something so simple can work so effectively. But it's true. Ted's understanding of the stock market is unequaled in my eyes. I was a broker for several years and have read dozens of books on making money in the stock market but they all miss the mark. Ted knew that the key to making BIG money in the stock market had less to do with fundamental and technical strategies and everything to do with psychology. Psychology is the key. This is the reason most people make or lose money in any endeavor. I recommend the book highly to any investor whether you are a beginner or veteran.