Customer Reviews

Rolling Stocks: Making Money on the Ups and Downs

5 star:		(19)
4 star:		(7)
3 star:		(2)
2 star:		(4)
1 star:		(6)

 

 

In the past year, I made thousands with the adice primarily rollig two gold stocks and using moving averages.Gregory Witt is witty (pun intended) and an excellent trainer. This book is an easy read along with being very powerful.I highly recommend this book along with Bear Market Baloney (WSMM#3) and Wall Street Money Machine#1.These books will make you money and it sure beats "buy and hold" (or is that buy and hope???)Good luck with your investing!

Mr. Witt provides a great overview of the whole concept ofRolling Stocks, but he makes it sound as if TeleChart 2000 is the only tool you need to find these stocks. While TC2000 is a great charting and analysis tool--probably the best for the price--you really need to consider one of the several services online that provide rolling stocks reports in order to save you the agony of manually searching through thousands of stocks to find just a few good rollers.

There is a science to successfully making money in rolling stocks and this excellent book discusses that science. I've been rolling three stocks and getting consistent and predictable cash flow. I'm not surprised to see the negative reviews, in fact I would be disappointed if there were none. This book is not for everyone, only those who want to make money. The others: they prefer to make excuses. Excellent book. You'll profit from it.

Rolling Stocks is an elaboration on an investing concept articulated by Wade Cook. It is a little hard to explain without a graph, but bear with me while I try.

Imagine that you have a historical daily stock-price chart in front of you. If draw a line between the highest two tops of the prices and another through the lowest two bottoms . . . and those two lines are more or less parallel (run in the same direction), you have found a rolling stock. Basically, it is a stock that operates like a sine curve (if you remember what those look like from trig class). Or think of it as an undulating wave bounded on the top and bottom.

Stocks will sometimes trade in these circumscribed ranges for some time, falling from the tops of the range to the bottom, then rising back to the top, and repeating.

If a stock does exactly this quite frequently, you can buy near the lows and sell near the highs, let the stock drop, and do it all over again. That's the fundamental idea. This has been a standard trading strategy of professional investors for decades.

What is different about this book is that it is the most complete articulation of how to pursue this trading strategy that I have seen. As such, it may provide the basis for some individual investors to learn how to use it.

The book describes the strategy in detail, provides some examples, takes you through some case histories, shows you how to find these stocks, provides ways to finetune the strategy for higher rewards, portrays the risks and rewards, and shows you where to get more information.

Mr. Witt reports that he most frequently finds such stocks among the lowest priced stocks, after they fall from a higher level, before they breakout to a higher level, with attractive stochastics (a form of technical analysis) which are probably representing ownership in a company that is unprofitable. In other words, the company's stock is in a funk because the company is in trouble.

Now, let me share my analysis and reactions with you. First, these are usually companies that are in trouble. Such stocks can break down in price very quickly. So even using stop-loss orders, you can take a 10-40 percent loss on the downside before you get out. Since the book advises you to usually place your stop-loss order at a higher price, you may do worse unless you are following the stock continuously.

Second, if you have never heard of stochastics before, this method may take more learning than you want to do.

Third, although the method is well described, it is more art than science. So you'll have to develop a touch and a feel. My suggestion is that you work with paper and pencil first. Then, if you are getting good results and like what you are doing, commit some real money. But start slowly. This should probably never be more than 10 percent of your financial assets.

Fourth, you will miss out on making much money if the market moves up quickly. Sure, you'll be able to sell out of this position. But you probably won't be able to find another stock to buy into. So there's an opportunity cost involved (what you could have made with some other investment method).

Fifth, keep good records. These trades (when successful) will trigger regular income tax bills.

Although this is less stressful than day-trading, it is also not buy-and-hold. Be sure that your nerves are up to this. Many people cannot feel comfortable following a formula like this when the market moves rapidly up or down. Ignore the formula, and you can get into trouble.

If this method seems too hard for you, consider the seasonal timing model. In that, you buy near the lows in October with a diversified group of solid company stocks and sell them near the highs in April. Almost all of the market gains historically have come during those months. This reduces your risk overall, and gives you faster gains than buy-and-hold. Often, you will buy back in during October at lower levels than in April.

Whatever method you decide to use, don't fall into the misconception that any one method will always work. Keep learning!

I was very skeptical about this strategy (as I am will all money making strategies), but I thought for $20, why not? I read through it and used his guidelines (>50k volume, < $10, Stochastic < 20) to find a stock and try it. I found Versant VSNT which has been rolling between 3 15/16 and 4 3/4. I was a little late in buying it, but on 7/19, I bought it at 4 1/2, just to experiment. I sold it on 7/24 for 5 after the stochastic issued a sell signal early in the day. Thats an 11% return in 4 trading days (or for fun, a 555% annualized return). Not an outrageous return, but not bad for my first attempt. I hope to get better returns as my skills improve. Buy this book, the strategy works! It will take you some time to find the stocks, but it can be done using nothing but the search engine at MSN Moneycentral or Telechart 2000.

Aside from this outstanding book by Gregory Witt, there is also Wall Street Money Machine Vol. 1&2, 2 Down Years and Up We Go and Red Light Green Light. So yes, there are other books out there, but this is still the best one on Rolling Stocks. The information on stochastics and moving averages is excellent.

I bought this book because I had already devised this strategy on my own, by observing price movements of certain stocks over time. When I saw the book title, I thought this somehow described my proposed trading strategy. Sure enough, it did, and the stategy even had a name! I was not naive enough to think that nobody had ever noticed what I had, so I was very glad to see that homework had been done by others, and a book had actually been written about the technique. The book explains the strategy in relatively clear and simple terms, explains very well what to look for, and most of the rules/guidelines one should use when doing these types of trades. The only thing I found a bit lacking was the fact Witt did not elaborate much on Stochastics and Moving Averages-both of which are extremely useful and quite accurate in determining buy and sell points. However, any good technical trading books/sources will give sufficient explanation of these, particularly commodities sources, which is the market these indicators were developed for, and where I have found my info on them. I have an account with one of the e-trade brokers, and virtually all the info I need can be had from their on-line resource sites. I have been using a combination of my already-developed rules/guidelines, Mr. Witt's, and my on-line resources to do paper trading-I have had very good success, and I can credit not just myself, but Mr. Witt's book, as he has paved what could be a very rough road by providing the information in his book. I very highly recommend this book for anyone who wants to trade and try and keep the process as simple as reasonable. The trick is to know and follow your trading rules, start simple, be patient, and multiply the effect as you grow. There is no reason one can't make a million in a few years, but you must work at it, and know your that your reason for being in the market is to buy and sell for a profit, with no emotion attached. Buy the book, you won't regret it-I didn't, it was worth every penny paid.

WE PURCHASED" ROLLING STOCKS" A FEW MONTHS AGO. WE PREVIOUSLY HAD "FAIR" RESULTS WITH ROLLING STOCKS USING ANOTHER METHOD. WE GAVE THIS METHOD A TEST DRIVE WITH STOCKS LISTED IN WADE COOKS WIN PROGRAM BEFORE ACTUALLY INVESTING ANY MONEY. AFTER WE BECAME REASONABLY ADEPT AT THIS METHOD WE BEGAN TRADING WITH STOCKS $5.00 AND UNDER , USUALLY 1000 SHARES OR SO. TO MAKE A SHORT STORY LONG, WE MADE OVER $5000 THE FIRST MONTH. WE HAD 12 WINNERS 2 LOSERS AND 1 BREAK EVEN. I DO WISH THE BOOK CONTAINED MORE CASE STUDIES ON ACTUAL TRADES COMPLETE WITH DATES. THE CASE STUDIES (OR EXAMPLES) IN THE BOOK WERE VERY HELPFULL SINCE WE COULD BACKTRACK THE TRADES ON TELECHART 2000. I WOULD HAVE LIKED TO HAVE SEEN MORE...PERHAPS IN THE FUTURE? THIS BOOK IS CERTAINLY A 5 STAR (ONE STAR FOR EACH GRAND WE MADE THE FIRST MONTH)! TRY IT BEFORE YOU KNOCK IT.

There sure are other books on the stock market, but other than Wall Street Money Machine, this is the only book that talks about Rolling Stocks and this book goes far beyond the 2 chapters in Wall Street Money Machine.

Read this book and turn your stocks into a rolling cash flow machine.

Mr. Witt is very enthusiastic about the amount of money you can make using Wade Cook's rolling stock method! At one point he even says flat out that you can make a million dollars in 3.5 years with it! This is true, if you make a 20% return each month, but the problem with this book is that it treats that sort of return as a given. Witt made it seem very easy to make a killing, and I spent a few days dreaming what I would do with all that money! The more I thought about it, though, the more questions cropped up. Several of these, I imagine, you could get answers to at one of Wade Cook's seminars, and Witt seems more to want to whet your appetite for those instead of answering questions himself. In the final analysis, though, this is a viable strategy even if it is a lot more risky than he makes it seem. People can & do make big bucks with it, with a lot of work. Even though Witt focuses mainly on the bright side, you will come away from the book with the concept firmly in grasp.