The Ted Warren theory sounds interesting....

I bought the course several years ago... but never had the time to pursue it.

Recently I revisited the materials and thought I would solicit any verifications of success by anyone.

Thank you for taking time to respond.

I'm in several TW selections now but haven't sold at a profit yet. But I plan to!

Here's the meat of the issue, for me. All the broohaha over stocks in the past 20 years has been very confusing and contradictory. TW is the first system I've seen that really makes sense. I've seen the patterns and I know it takes time. So I'm pretty much settled into a routine, now, of biding my time and watching and waiting... and studying. This is no get-rich-quick scheme, that's for sure. But it gives me great strength and fortitude to realize that I can do better than a mutual or some dumb know-it-all just by consulting with Uncle Ted. That's a start.

I expect to be able to prove my mettle over the next several years. In the meantime, about all I can do is brag about how much insight I have.

I agee with you... I sometimes wonder if it is my inner need to have some matrix system of order to place over the disorder and say "that makes sense."

Another question is... did Ted make money? I have not have the time to research this.
Thanks

I haven't read the book in awhile but as I recall, he made lots of money.

I've been trading using TW methods for a year and a half, and I can confidently state that I have realized substantial (5-digit) profits on my TW picks during one of the toughest markets in decades. I readily admit that I churn my account far more than Ted would have ever approved of to lock in profits (I use Ted's entry criteria, but I tend to exit, and potentially re-enter, positions based on short- to intermediate-term technicals), but my batting average on closed positions is astounding, and the number of open positions in the red is quite manageable.

I started out VERY slowly, buying just a few picks (and paper trading others) to prove the theory. The first 6-9 months are the toughest and potentially the most discouraging. It takes TREMENDOUS patience and perseverance to trade this method, and riding out the frequent shakeouts can be demoralizing. If you have followed Ted's entry criteria PRECISELY, it's a question of time and keeping the faith.

You will find that some picks rocket up out of the shoot, some picks will experience significant shakeouts right after the breakout point, and some will seem to meander forever. Concepts of money management (including position sizing) and diversification are extremely important to trading this method successfully (unfortunately, these areas are not the strengths of Ted's book). I can't stress enough the importance of following Ted's entry criteria to a tee (only buying on confirmed breakouts, having the appropriate duration/volume/volatility characteristics, not chasing a stock too far beyond its breakout or consolidation point, etc.), particularly for your first picks. While not a part of Ted's system, using additional fundamental criteria (e.g. only positive earnings, a certain debt-to-equity ratio, etc.) and limiting picks to a certain liquidity level may also be advisable on your early picks to reduce risk.

Preferably one should paper trade before commiting $s to a system; regardless you need to start small (using only RISK CAPITAL), and continually paper trading picks you cannot currently afford (or riskier/borderline picks) is an excellent way to learn as you go. Keep a log of mistakes made/learnings; if you're brutally honest with yourself, this will be a tremendous help as you progress with the system. As you go along and gain confidence, the gradual diversification of your portfolio will greatly improve the distribution of quick-hitters, depressing shakeouts, and plodders.

There are many systems that can be traded successfully, but a system can also be implemented successfully by some while being a miserable failure for others. Any system needs to be evaluated against the trader's personality, goals and commitment. As I said, Ted's system requires patience and persistance. Once you find the stocks fitting the appropriate criteria, you'll have to monitor those picks at least daily, waiting for the breakout to manifest itself. You also have to closely monitor open positions to assess their progress. While not as time intensive as a day-trading, the system does require a healthy time commitment (you get out of it what you put into it).

And while forums such as this or an Investolator newsletter or whatever source may suggest TW stock picks, always due your own due diligence and thoroughly evaluate what you may place your hard-earned dollars in. You're the one ultimately accountable for how well or poorly you implement the system.

Hope this helped a little bit.



As a side note, I would have expected quite a few more responses than this from the visitors. I don't know if it is the new discussion board format (or if people are starting to visit less frequently or what), but the number of posts seem to be dropping. Can you confirm any of this Rick?