Question about Steve Woods 2400% return

Discussion in 'Trading' started by Tradin4profit, Sep 17, 2001.

  1. Anyone familiar with this guy Steve Woods who wrote a book on his trading method and is supposed to have made I think a 2400% return in short period of time( a year or two?). Sounds highly suspect to me. Anyone have any good or bad experiences with his trading method? Does it work, not work, etc.
     
  2. Trading4profit

    I have read Steve Woods book and subscribe to his newsletter. I think its probably one of the best books written in the last couple of years. I'm trying to apply whats in his books to programming code for Tradestation Why dont you subscribe to his newsletter at his website www.floatanalysis.com and find out for yourself. I dont know about making 2000% profits but his newletter is very accurate. The newsletter is still free for a couple of more weeks, then hes gonna start charging a fee.

    Sterling
     
  3. Thanks, I'll check out his web site and newsletter.
    How about you, how have you done personally trading his method? Percent return, wins vs. losers, etc.
    I had saw another post on this message board which is what caught my interest about Steve Woods to begin with about an online webcast he was going to be doing if I'm not mistaken this weekend or the next with some club he was speaking at. Do you know where you go on the internet to hear this presentation on his trading strategy?
     
  4. Babak

    Babak

    I was very skeptical at first (four digit percentage returns always make me roll my eyes) but I've just reviewed his website and read this:

    "These formations demonstrate an idea at the heart of Float Analysis: if a large percentage of a stock's ownership changes hands while the stock's price is moving sideways then a big move in price will probably soon occur."

    Makes sense to me. It is an attempt to distinguish when shares are changing from strong hands to weak ones and back again. Probably will be refined in the future and become a standard technical analysis tool just like oscillators, et al.

    Apparently he wrote an article for TA of S&C magazine in 1996:

    http://www.floatanalysis.com/mag.htm

    It seems to draw similar conclusions (signals) as a Donchian channel break out. However, as you know entry signals are a very small part of trading.
     
  5. mjt

    mjt

    If anyone is interested I have nearly a year's worth of emails from Steve Woods in which he gave weekly analysis of stocks that met the criteria of his float analysis theories. If one wanted to test the validity of F.A., I think the best way to do this would be to look at his past emails and see how the selected stocks performed over the following weeks and months. I have been meaning to do this for a while but haven't gotten around to it. Let me know if you would like for me to forward these emails to you. (These emails were sent out free, so I can't imagine there is a legal problem)

    BTW it looks like there are about 50 emails, so I won't send them out to anyone unless I can figure out how to send them all in one email. Someone please inform me how to do this.
     
  6. Vector

    Vector

    I don't know about his 2400% he is supposed to have made, seems highly suspect to me as well with all the wild claims so many of these presenters make. I have not had a chance to look at it yet, but i know he does have a book he's written on his trading strategy. Whether the info is good or bad I don't know, but I know he is scheduled to do a presentation at a traders club meeting this Saturday (info was in another thread on this message board) and they broadcast these meeting over the internet as a web cast for free on www.PalTalk.com Just go to the site, download the chat program, which only took me less than a minute to download with a 56K modem and click on Groups and the different chat group catagories will come up, scroll down the group selections list to the 3rd catagory from the bottom called "Business and Finance".
    Look for the chat room titled "TradersClub Webcast Sept. 22nd 9 to 3 EST" and click on it to join the chat on PalTalk.com . If I'm not mistaken, you can view the club meeting with the video feature or just listen by audio. I had put their web site that I saw in a previous post in my Favorites on my browser, just so I would know how to find them again since they are supposed to do these webcasts every month with a different speaker. You can check them out at www.CornerstoneInvestorsNetwork.com
     
  7. Babak

    Babak

    mjt, interesting offer. I am curious what the results would have been but since I do not have the time I will just appx the results and say that in a trending market, the strategy will do well (as almost any decent channel breakout would), in a winding one it will get shredded or simply not generate any signals.

    Also to determine exact results of his signals, we would need an exit strategy and risk management (stop loss). Something that I did not find on his website. Entry strategies are abundant but as you know trading is 90% position sizing and psychology.
     
  8. By the way. no where on his site do you find anything mentioning returns of 100% or 2000%. These numbers were mentioned to pique an investors interest in a talk show program mentioned in a previous E.T thread. Steve Woods is one of the few legitimate authors of trading books today.

    Sterling
     
  9. tymjr

    tymjr

    "In the sixteen months from September 1998 to January 2000, I took a small account of a few thousand dollars and grew it tenfold." - Steve Woods
     
  10. tymjr

    Did you find that quote on his site? I looked all over didnt see it

    Sterling
     
    #10     Sep 18, 2001