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Strategies & Market Trends : Ted Warren's Investolator

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To: James Traylor who wrote (1768)8/9/2025 11:10:42 PM
From: WEagle  Read Replies (2) of 1789
 
Hi, James.

I generally agree with you.

On thing I have to point out is that while Ted advocated just using monthly charts to determine what and when to buy, he believed that once we buy a stock we should be monitoring it daily. I do think that if the investolator, for one reason or another, can't check on his stocks daily, it usually will not result in disaster. But occasionally it will. One example is when a stock spikes up significantly. Ted said sell it even if it has not achieved the minimum percentage gain that the chart pattern should have yielded. He said that in those cases, the stock often quickly retreats and many then not make another significant move up for years to come.

The reason that I want to experiment with swing trading is I want to find a way to possibly make money when stocks may not be making much headway. One such time for a TW type stock is when in a consolidation pattern. At those times, a stock may move up and down but generally go sideways. If the up/down action has enough of a price range, there should be money to be made.

I really expect that I will find myself with some Ted stocks that I hold for the bigger gains and other stock that I choose to trade the swings. Since I want to use Ted pattern stock in the swing trades for which I will paying close attention, I hope that I will be able to identify when those stocks are actually going to make a breakout and therefore should be held for bigger gains.

I also would love to get good enough to avoid some of the big set-backs that I have seen in many of my stock that I bought because of their TW chart patterns. I've seen enough of some of my TW stock selection that had good gains but a more significant market correction caused them to drop back and they either took most or all of the next market up move to regain what was lost or some became stock that have never made another significant move up. That is why my portfolio has for some time now been loaded with what I refer to as dogs. Almost every TW stock that I have bought made good moves early on. I've had many that made 200% to 300% gains that I sold. Others were up well but dropped back never to make another move. Ted would say keep holding, but I am confident that many will truly never recover. They are just too far gone. Many of these had reverse splits to not lose their listing. With so few shares and barely having a heartbeat, I don't think those stock will ever do enough to even get 20% of my original investment back.

Will my plan work? I don't know but I am going to give it a try for a while.

I'll also point out that Ted lived at a time so that he happened to start investing coming out of the great depression and he never say another truly major bear market in his lifetime. We may not either but there is always the possibility that it will happen.

WEagle
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