About the question i asked the other day on the proof that his strategy works (since he didn't make a large fortune), i found the answer, it is no.
http://www.amazon.com/gp/customer-review...87K019AKIN
" The book is a fun read. It describes Mr. Weinstein's chart breakout method. The problem is that Mr. Weinstein does not provide a track record of his method in the book. I was able to find a 1998 reference from the Business Week website citing a ten-year return of his now-defunct Professional Tape Reader service of 7.13% per year. The S&P returned approximately 15% per year over the same period.
Interestingly, the New USA Fund, established by David Ryan, and using another breakout strategy, that of Investors Business Daily's CANSLIM method, posted only a 3.14% return per year from April 1992 to May 1995. This was after he had won some U.S. Investing Championships with over 100% gains. This fund is now defunct.
When you look at charts of stocks that have had big runups, you will often find a breakout from an area of consolidation. The problem is that careful examination of charts of stocks in general will reveal these same patterns, often not followed by a big price move. Any decent method will show periods of spectacular return, but the vast majority won't beat the indices long-term. "
(2016-05-14, 08:30 PM)kero Wrote:SebForLiberty Wrote:" The rising price, on volume, signifies more buying than selling pressure and the volume that there is an increase in interest. If little volume accompanied a rise then it would show that there was a lack of buying interest. "
Rising volume also means more people are willing to sell the stock as its price is going highter. If little volume accompanied a rise then it could also show that owners don't want to sell despite of the rising price, which is obviously a good signal.
Imagine yourself: an army penetrates a territory, without encountering the opposite army. Would you say the arriving army is stronger just because there wasn't a battle (yet) ?
Maybee it is. Maybee not. You can't say until both army actually fight.
When you have a volume on a breakout, you know that there is buyers' strongness. If there is not, you don't know. It is not that a breakout/breakdown without significant volume can not succeed. It is that such a breakout/breakdown has less chances to succeed.
All the Weinstein method is about observing a very few indications, which can maximise your chances of success. Volume, sector, and a few other things. You can choose not to consider them, but that will result in more unsuccessful trades.
It's just a matter of probability.
Ok now i understand, thank you.
Yes but the Weinstien method doesn't work as shown by the previous post and the fact there is no proof he made a fortune.