An article from the NYTimes last week (summary below) was an excellent example of fraud and manipulation in the stock market.
My concern when reading it was 1. whether publicizing this type of manipulation would not end it, and 2. could I be buying the stock of companies that do not exist, are defunct, are fraudulent.

Answer to 1. there will always be manipulation of stock price as long as there is a market, and 2. Ted's methods stress long-term patience; you should not be buying stock that has not been in a pattern for at least two or three years (depending on the formation), and most of the schemes in the article seem to be of companies whose charts would not meet our requirements (something I want to do more research into...)

I read the article (but did not save - dratts!) and may purchase it from the NYTIMES.COM site.

I will update this post if I find anything else out.

I have read Gene Marcial's book (Secrets of the Street) and have been looking for any other books, etc. re: manipulation ever since.

Steve.

November 19, 1999, Friday
DANGEROUS DEALS: A special report.; Penny Stock Fraud Is Billion-Dollar Game
Most Americans may not know it, but there are really two Wall Streets. One is the Wall Street of the New York Stock Exchange closing bell, of brash stockbrokers and hair-trigger traders, of big deals and big fortunes, of Microsoft and mutual funds. ...

Thanks for the tip, Steve. I am going to see if I can get the article you mentioned. I have the course now and am in the process of devouring it.My initial reaction is, that there are so many stocks with the formation Ted describes, how do you narrow it down? I find myself mixing in some fundmental strategies. Is this wise? Do you mind if I ask you what is your weeding out process?

I think that you are focussing in on the one aspect of trading (stocks, commodities, etc.) that cannot be taught, but can only be accumulated/understood over time.
As painful as it is (I can attest to this), it seems the only way to determine which stocks to get into, which which not, is by feel.
My most favorite quote (recently) from Ted is: "It's better to wait for a set-back that never comes and miss a buying opportunity, than to try to hop on a moving train and get run over!!"
Meaning for me, the best time to buy is when everyone else is NOT buying (quick rises, fast moves, etc.), all of those times when your mind tells you "this is it!!".
I write this quote on the inside cover of my stock charts every month to remind me.
In this book, I find literally 100's of examples of Ted's formations.
After a 1 1/2 years of looking to the charts, and investing in stocks that have not gone anywhere (yet), I have just begun to find formations that I am more comfortable with than others.
And every time I look at the charts, I seem to find myself trusting some more than others.
Who knows why, but as long as I am comfortable enough to have the necessary patience.
So, the long answer is above, and the short answer is to find one you like and dive in.
None of this sticking your toe in the water stuff.
Get in.
These stocks don't fail to please, it's just a matter of when.
Steve.

I am calf deep in the water with Ted's theory. I am involved with a few tech stocks right now that are doing well, (not Ted's way I know, but these are rare times) but I believe in Ted's theory enough to explore, test and add his strategy to my portfolio. I bought NETM, which is right out of the Investolator. It has made me some profits and the future looks bright. (Yahoo message board makes some good points on this one.)

I was following RGEN (Repligen), which I picked out from Ken's chart book). I was about to buy because it looked primed to move up. It seems that they had a product, which early tests showed signs of aiding autistic children. The stock started to move up from mid 2's to 4 7/8. The long range chart shows an accumulation and low volume of about 4 1/2 years and a consolidation of about 8 months with volume ticking upward. Recentlty, the volume has been about 100,000 shares per day. Then more recent news followed that stated the test were far to premature to have any meaning. 1,775,000 shares traded that day which caused the stock to fall to about 2 3/4. This is a classic example of manipulation to me. This seems like a final shakeout. What do you think? You should read the news and look at the insider accumilation (many small daily buys). In any case thanks for your suggestions, which I do agree with. It helps me to stay disciplined by hearing some reenforcing words. Especially in these crazy (RHAT, YAHOO etc.) times. I sincerely wish you many successful trades! Nick

I have watched RGEN rise and fall back some.
Yes, I do think that was a shakeout.
I bought a while back at 1 1/4.
I plan to buy more when the volume settles a bit.
Two ways of approaching this one:
1. buy now based on its continued consolidation (this is what I will do)
2. wait until this stock breaks above its high of aroung 4 15/16.
The second is a conservative method that allows you to wait and not tie up your money.
It also prevents larger profits.
I always thin about investing a certain dollar amount (say $2500) and see how much more I can purchase at the lower number. Worth the wait.

Let me know how things go for you.
Remember, when you feel overwhelmed it's just that your mind is resisting change.
It's simple (contrarianism), yet oh so difficult.

Steve.

eom

And now the fun part.
When to sell.
I have to say that this one is moving (this was a big week), I am learning more and more why Ted said that knowing when to sell is the hardest part.
First thing to get over is trying to time the top of this rise (stop doing the math on how much you would get if you sold at the top).
You only have made as much money as you make WHEN to sell (not if).
Funny, but this is usually the part least studied in Ted's book because you don't think it will be hard to sell high.
I hope, for all's sake, that they bite the bullet and get the opportunity to experience what I am experiencing.

Steve

The top is not that clear on this one. Reason is becouse Ted didn't care what the company does and therefor he looks at the chart, so now we have the right stock, but we must consider what this company has to offer IE> drugs that cure and if this works who knows where the top will be. We must look at the trend line and watch when it breaks, If we are fortunate enough this will go long and far. Thanks Ted for giving us this oppertunity to pick this one up when we did. I bought after the break in the line @4.50. See ya steve at the top. Go to the ragingbull.com boards

work your base lines, downtrend lines, triangles, on the charts. I do not buy until the price action breaks above my trend lines. I sell when my upward trend line is broken. I try to stay out of what everyone else is doing and stay with my charts. Its called a contary opinion.

In 1984 I was in California and heard of Richard Ney. He's Chairman of Richard Ney and Associates. He documented widespread abuses (and testified before congress on the matter, which were summarily dismissed of course)of stock market manipulations in the 1970's.

His three books are as follows:
1st: The Wall Street Jungle, Grove Press, New York. 1970.

2nd: The Wall Street Gang, Avon, New York. 1974.

3rd: Making It in the Market, McGraw-Hill, New York. 1975.

Except for an ongoing newsletter, these were the last of his published works.

While Ted Warrens book uses an "aw shucks" genre, dealing primarily with investor psychology, Mr. Ney has "proven" as best he can with information that's extremely difficult for the public to obtain (which by the way was never again obtainable after the books publication)how the manipulations of wall street are used every day to get the pubic to move one way or another.

Their are only 4 books on my book shelves dealing with Investments. They're Ted's book , and Mr. Neys 3 books. You don't need the others.

Mr. Neys first two books are extremely difficult to find. It took me six months of digging through off main street book stores to finally collect them all. Mr. Ney may be able to help you; He can be reached 818-441-2222, in Pasadena, CA.

Happy Hunting
Rick

Is this the same Rick who on 1/12 announced he was giving up? If so, why the sudden 1-day turn around? I have been trading using this system since last September. The first stock I bought, I sold about 2 months later after a 50% gain (I only sold it because the company was bought). Out of my portfolio I have only 2 stocks which were suggested in the Investolator and they are not moving much but are at least in the black. With the exception of 2 others, the rest I have picked using TW's methods and the Chart Book. Of those, 1 is in the red, two are up over 55%, 1 up over 35%, and the rest are up only nominally. I am beginning to feel pretty comfortable with using this method especially after seeing how well my picks held up when the market turned ugly at the beginning of the year. If this is the same Rick who is now betting on horses, you may wish to reconsider returning to your original plan and try your own picks rather than only following the Investolator.

Hi Fran,
Glad to see your sticking with TW. My last trade lasted for 5 months and I "netted" 78% ROI. Anyone who hasn't figured this out yet just doesn't get it.

Like you I'm a new comer; even though I've been in the markets for years (averaging appx 80% ROI on complete portfolio over last 5 years) I didn't really start to do it on my own using TW's system until about 18 months ago. I look at it as a college degree. You'd spend $40K easy to get a degree and make $24K a year starting out. Invest $40K using TW's techniques and you'll easily get to where you don't have to punch a clock for anyone but yourself in short order (meaning 5 -10 years). Some get-rich-quick scheme, huh?

I think the other Rick is out bettin on horses. Can't wait on him.

Good chattin; Good luck
Rick S.

I'm the Rick who's been at the track.

Bottom line: It didn't work out. The theory was that I would select only the horses that were listed in the consensus selections by the experts. And of those, I would pick, to show, only the horses whose ratings were more than twice the racting of the second horse PLUS the rating of the third horse.

The actual statistical loss without using any method should have been around 30%. I reduced my losses to around 20%, but could not get the 10% gain I expected, even after 60 bets.

I've got a handicapper on the dogs at the local track who I follow at Winpic. I'm up $20 on wagers of $291 for last nite, my first nite, on paper. That's 6%.

Just kidding, Rick.

Good luck with the dogs.
Bill

I just want the reader to note that RGEN was a TW stock at the end of 1999 when some of the visitors here noted it.

If I had been saner, and if I were using the tactics I'm using now, I would have been in at $5 and out at $10. This would have worked to produce a predictable 100% gain-- and annualized it would have been more than 100% in this case because the rise was fast and took place over only a few months.