How to Make the Stock Market Make Money for You 
asked by sumbuddy on November 21, 2006 10:46 AM
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My only success in the stock market over the past 15 years has been as a result of following this man's method of reading stock chart activity. I loaned out my first copy of this book many years ago and never got it back. This is my second copy, and I will not loan it out!
It takes patience and a little faith in the methodology. Not for daytraders.
It takes patience and a little faith in the methodology. Not for daytraders.
reviewed by noreason on November 21, 2006 2:54 PM
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Ted Warren was a day laborer with a sixth-grade education who made a fortune in the stock market and decided to franchise his methods by publishing this book in 1966. Both Ken Roberts and the Buccaneer Press have apparently made a bit of money over the past dozen years or so by reprinting and selling copies of it, together with related audio tapes, and investment seminars.
According to the 3rd edition copyright page, the 1st edition was issued in Los Angeles by Sherbourne Press in 1966. The 2nd reprint edition was published in Grant's Pass, Oregon by Four Star Press / Ken Roberts Company / Ted Warren Company, beginning in 1993, and went through 3 printings. The 3rd corrected edition was published in Patchogue, New York by Buccaneer Press in 1998.
Although it may be obvious, the question for any purchaser is not, "Will you do as well?" Rather, the question is, "Will you even cover the cost of the book and your time spent reading it?" For those interested in an independent analysis of Warren's methods, OCLC lists a catalog entry for a 1970 San Diego State masters thesis by Richard D. Murphy: "A Test of Warren's security selection method".
According to the 3rd edition copyright page, the 1st edition was issued in Los Angeles by Sherbourne Press in 1966. The 2nd reprint edition was published in Grant's Pass, Oregon by Four Star Press / Ken Roberts Company / Ted Warren Company, beginning in 1993, and went through 3 printings. The 3rd corrected edition was published in Patchogue, New York by Buccaneer Press in 1998.
Although it may be obvious, the question for any purchaser is not, "Will you do as well?" Rather, the question is, "Will you even cover the cost of the book and your time spent reading it?" For those interested in an independent analysis of Warren's methods, OCLC lists a catalog entry for a 1970 San Diego State masters thesis by Richard D. Murphy: "A Test of Warren's security selection method".
reviewed by redsink on November 24, 2006 11:16 PM
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If you like to read investment books written by in-your-face, stock market evangelists - this one might be for you! The late author rants and raves about evil insiders and the invisible-but-powerful "they" throughout the book. He seemed to advocate that his life-experience gained as a grade school drop-out, lumberjack, and stevedore gave him a unique perspective on viewing financial markets and qualified him as an investment authority. However, it is doubtful that this book will help you attain your investment goals.
The major problem I have with this book is that its methodology is based upon a common scaling error found in numerous charting systems. The author suggests purchasing issues that have had a significant decline in price and have broken-out of a subsequent, multiyear accumulation base. This accumulation base appears as a quiet period where the price fluctuates in a very narrow area while it is passing from weak to strong hands. The author used M. C. Horsey's "Stock Picture" as a resource for discovering such issues. Unfortunately, the monthly Horsey charts are arithmetically scaled. Stocks that were once at 50 on the chart and have declined to 10 will have all the lower priced activity compressed or squashed by the nature of the arithmetic chart. A 10% advance beginning at 50 would take the price up 5 to 55, while a like advance beginning at 5 would take the price up by only 0.50 to 5.50. Therefore, what appears to be an ideal trade set-up for Mr. Warren totally disappears when a more correct semi-logarithmic scale, which is calibrated to indicate percentage movements, is used. The reality described by Mr. Warren may not be the reality one encounters in real-time trading. The arithmetic quiet period is often a semi-logarithmetic roller-coaster, since lower-priced shares can be extremely volatile - for example, EFJI's share price recently collapsed by 11% in a single day! After selecting and purchasing a stock (or commodity), the author would follow his trades by traditional technical analysis tools such as trendlines, etc. I feel that his description of the technical method is rudimentary and simplistic!
Earning a superior investment return is hard work in a highly competitive field. Un- or inadequately-prepared dilettantes generally lose their capital sooner rather than later: the average futures account is bankrupt after only four months! There is much more utility and pre-packaged wisdom for the average investor in the standard works written by John Murphy, Martin Pring, and Alexander Elder - who all know what they are talking about and are excellent writers. I am certain that using the prescriptions outlined in Warren's book will disappointingly fall far short of "making the stock market make money for you!"
The major problem I have with this book is that its methodology is based upon a common scaling error found in numerous charting systems. The author suggests purchasing issues that have had a significant decline in price and have broken-out of a subsequent, multiyear accumulation base. This accumulation base appears as a quiet period where the price fluctuates in a very narrow area while it is passing from weak to strong hands. The author used M. C. Horsey's "Stock Picture" as a resource for discovering such issues. Unfortunately, the monthly Horsey charts are arithmetically scaled. Stocks that were once at 50 on the chart and have declined to 10 will have all the lower priced activity compressed or squashed by the nature of the arithmetic chart. A 10% advance beginning at 50 would take the price up 5 to 55, while a like advance beginning at 5 would take the price up by only 0.50 to 5.50. Therefore, what appears to be an ideal trade set-up for Mr. Warren totally disappears when a more correct semi-logarithmic scale, which is calibrated to indicate percentage movements, is used. The reality described by Mr. Warren may not be the reality one encounters in real-time trading. The arithmetic quiet period is often a semi-logarithmetic roller-coaster, since lower-priced shares can be extremely volatile - for example, EFJI's share price recently collapsed by 11% in a single day! After selecting and purchasing a stock (or commodity), the author would follow his trades by traditional technical analysis tools such as trendlines, etc. I feel that his description of the technical method is rudimentary and simplistic!
Earning a superior investment return is hard work in a highly competitive field. Un- or inadequately-prepared dilettantes generally lose their capital sooner rather than later: the average futures account is bankrupt after only four months! There is much more utility and pre-packaged wisdom for the average investor in the standard works written by John Murphy, Martin Pring, and Alexander Elder - who all know what they are talking about and are excellent writers. I am certain that using the prescriptions outlined in Warren's book will disappointingly fall far short of "making the stock market make money for you!"
reviewed by corral on November 27, 2006 2:37 PM
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Have read a TW book twice in life... in college and failed to see the wisdom... and this book about 5 years ago. Tried my best to learn and also followed a newsletter dedicated to TW market strategies. Three years ago portfolio account started and traded buying at TW breakout points and not before(equal shares in each holding), cutting losses on all stocks that did not follow through after breaking out...letting the others ride. The results as of today: current long 6 stocks up 3%, 103%,196%, 292%,323%,& 1074%. It is not get rich quick, but it does work. Up almost 11 times your money is nice but it is time to let this one go...check 3 year chart on OHB! Judge for yourself!
reviewed by mags on November 29, 2006 12:37 AM
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It is amazing how simple the techniques used and taught by Ted Warren are to be successful in the stock market. This is no get rich quick program as other authors might try to sell you. If you remain patient and disciplined, you will be well on your way to retirement with no worries.
reviewed by imtheboss on November 29, 2006 7:06 PM