Richard Ney: The Actor, Author, Journalist, and Trader Who Revealed the Truth Behind the Stock Market
Q2: Is Richard Ney's method still relevant and effective today? Q3: What are some of the challenges and limitations of Richard Ney's method? Q4: What are some of the best resources and tools to learn more about Richard Ney's method? Q5: How can I practice and apply Richard Ney's method in my own trading? Table 2: Article with HTML formatting ```html Making It In The Market: Richard Ney's Secrets To Success
If you are interested in learning how to trade the stock market successfully, you should know about Richard Ney. He was a famous actor, author, journalist, and trader who exposed the Wall Street manipulation and developed his own method of analyzing and profiting from the market. In this article, you will learn who Richard Ney was, what he did, how he traded, and how you can apply his principles to your own trading.
Making It In The Market Richard Ney 20.pdf
The Ney Report: How Ney Exposed The Wall Street Manipulation
Richard Ney was born in 1916 in New York City. He started his career as an actor, appearing in several movies and Broadway shows. He was best known for his role as the young Nazi officer in Mrs. Miniver (1942), which earned him an Oscar nomination.
However, Ney was not satisfied with acting. He had a passion for journalism and finance, and he wanted to uncover the truth behind the stock market. He believed that the market was rigged by a group of powerful insiders who controlled the prices and manipulated the public.
In 1959, he published his first book, The Wall Street Jungle, which caused a sensation. In this book, he revealed how the market makers and specialists on the New York Stock Exchange (NYSE) operated a system of collusion and fraud to cheat the investors and enrich themselves. He used his acting skills and contacts to infiltrate the Wall Street circles and gather evidence of their illegal practices.
The book was a bestseller and sparked a congressional investigation and a series of reforms on the NYSE. Ney became a celebrity and a hero to many small investors who felt betrayed by the Wall Street establishment.
Ney continued his crusade against the Wall Street corruption in his second book, The Wall Street Gang (1974), which exposed how the brokerage firms, mutual funds, analysts, and media also participated in the market manipulation and deception. He also launched his own newsletter, The Ney Report, which provided his analysis and recommendations on the stock market.
The Ney Method: How Ney Analyzed The Stock Market And Made Profits
Ney was not only a whistleblower, but also a successful trader. He developed his own method of analyzing and trading the stock market based on price and volume movements. He believed that the price and volume action reflected the supply and demand forces in the market, and that by studying them, he could identify the trends, patterns, and signals that indicated the future direction of the market and individual stocks.
Ney's method consisted of four main components: the Ney Box, the Ney Pivot Points, the Ney Relative Strength, and the Ney Volume Oscillator. Let's take a look at each one of them.
The Ney Box: How Ney Identified Trading Ranges And Breakouts
The Ney Box was a simple but powerful tool that Ney used to identify trading ranges and breakouts. A trading range is a period of time when the price moves sideways within a defined upper and lower boundary. A breakout is when the price moves out of the trading range in either direction.
Ney used horizontal lines to mark the upper and lower boundaries of the trading range. He called these lines "Ney Lines". He drew them by connecting the highest highs and the lowest lows within the trading range. He also drew intermediate Ney Lines by connecting other significant highs and lows within the range.
Ney observed that when the price broke out of a Ney Line, it tended to move in the direction of the breakout until it reached another Ney Line or reversed its direction. He also noticed that when the price broke out of a trading range, it often returned to test the Ney Line that it had broken before continuing its move. He called this phenomenon "the Ney Retest".
Ney used these observations to trade breakouts and retests. He would buy when the price broke out above a Ney Line and sell when it broke below one. He would also buy when the price retested a Ney Line from above and sell when it retested one from below. He would place his stop-loss orders just beyond the opposite Ney Line to limit his risk.
The Ney Pivot Points: How Ney Calculated Key Levels And Targets
The Ney Pivot Points were another tool that Ney used to calculate key levels and targets for each stock. He used mathematical formulas to determine the most likely turning points and objectives for each stock based on its previous high, low, and close prices.
Ney calculated three types of pivot points: daily, weekly, and monthly. The daily pivot points were based on the previous day's high, low, and close prices. The weekly pivot points were based on the previous week's high, low, and close prices. The monthly pivot points were based on the previous month's high, low, and close prices.
Ney used these formulas to calculate the pivot points:
Daily Pivot Point = (Previous High + Previous Low + Previous Close) / 3
Weekly Pivot Point = (Previous Week's High + Previous Week's Low + Previous Week's Close) / 3
Monthly Pivot Point = (Previous Month's High + Previous Month's Low + Previous Month's Close) / 3
Ney also calculated three levels of support and resistance for each pivot point. These levels were potential areas where the price could bounce or reverse its direction. He used these formulas to calculate them:
First Support Level = (2 x Pivot Point) - Previous High
Second Support Level = Pivot Point - (Previous High - Previous Low)
Third Support Level = Previous Low - (2 x (Previous High - Pivot Point))
First Resistance Level = (2 x Pivot Point) - Previous Low
Second Resistance Level = Pivot Point + (Previous High - Previous Low)
Third Resistance Level = Previous High + (2 x (Pivot Point - Previous Low))
```html bounced from a support level or broke above a resistance level and sell when the price reversed from a resistance level or broke below a support level. He would also use the pivot points and support and resistance levels as targets for his trades. He would place his stop-loss orders just beyond the opposite level to limit his risk.
The Ney Relative Strength: How Ney Ranked Stocks And Sectors
The Ney Relative Strength was another indicator that Ney used to rank stocks and sectors based on their performance. He compared the price movements of different stocks and sectors to each other and to the market as a whole to find the best opportunities.
Ney calculated the relative strength of a stock or a sector by dividing its price by the price of a benchmark index, such as the S&P 500. He then plotted the result on a chart as a line. He observed that when the line was rising, it meant that the stock or sector was outperforming the market, and when it was falling, it meant that it was underperforming the market.
Ney used this indicator to trade with the leaders. He would focus on the stocks and sectors that had the highest relative strength and avoid those that had the lowest relative strength. He believed that the strongest stocks and sectors would lead the market trends and offer the best returns.
The Ney Volume Oscillator: How Ney Measured Supply And Demand Forces
The Ney Volume Oscillator was another indicator that Ney used to measure the supply and demand forces in the market. He used a moving average of volume to identify accumulation and distribution phases.
Ney calculated the volume oscillator by subtracting a 10-day simple moving average of volume from a 30-day simple moving average of volume. He then plotted the result on a chart as a histogram. He observed that when the histogram was above zero, it meant that there was more volume in the last 10 days than in the last 30 days, indicating accumulation. When the histogram was below zero, it meant that there was less volume in the last 10 days than in the last 30 days, indicating distribution.
Ney used this indicator to trade with the trend. He would buy when the volume oscillator was positive and sell when it was negative. He believed that accumulation indicated buying pressure and bullish sentiment, while distribution indicated selling pressure and bearish sentiment.
The Ney Legacy: How Ney Influenced Other Traders And Analysts
Ney was not only a successful trader himself, but also a teacher and mentor to many other traders and analysts who followed his work and learned from his methods. Some of them became famous and influential in their own right, such as William O'Neil, Stan Weinstein, and Martin Zweig.
William O'Neil was one of Ney's students who later founded Investor's Business Daily, a popular financial newspaper that provides market analysis and stock recommendations based on O'Neil's own system, called CAN SLIM. O'Neil credited Ney as one of his main influences and sources of inspiration.
Stan Weinstein was another one of Ney's students who later wrote a bestselling book, Secrets for Profiting in Bull and Bear Markets (1988), which outlined his own method of trading based on trend analysis and relative strength. Weinstein also acknowledged Ney as one of his mentors and teachers.
Martin Zweig was another one of Ney's followers who later became a renowned market analyst and money manager who predicted several major market events, such as the 1987 crash. Zweig also wrote a classic book, Winning on Wall Street (1986), which explained his own approach to investing based on market indicators and cycles. Zweig also recognized Ney as one of his influences and sources of information.
The Ney Lessons: How You Can Apply Ney's Principles To Your Trading
Ney's work and legacy have left us with many valuable lessons and insights that we can apply to our own trading. Here are some of them:
Learn The Language Of The Market
Ney taught us that the price and volume action is the language of the market, and that by studying it, we can understand what the market is saying and where it is going. He showed us how to use tools such as Ney Lines, Ney Pivot Points, Ney Relative Strength, and Ney Volume Oscillator to interpret the price and volume action and identify trends, patterns, signals, levels, targets, leaders, laggards, accumulation, distribution, reversals, continuations, and breakouts.
By learning the language of the market, we can gain an edge over other traders who rely on opinions, predictions, news, or emotions. We can also avoid being deceived or manipulated by the Wall Street insiders who try to influence the market and the public.
Follow The Leaders
Ney taught us that the best way to trade the market is to follow the leaders, not the laggards. He showed us how to use Ney Relative Strength to rank stocks and sectors based on their performance and focus on the ones that have the highest relative strength and avoid the ones that have the lowest relative strength.
By following the leaders, we can benefit from the strongest stocks and sectors that lead the market trends and offer the best returns. We can also avoid wasting time and money on the weakest stocks and sectors that lag behind the market and offer poor returns.
Trade With The Trend
Ney taught us that the trend is our friend, not our enemy. He showed us how to use Ney Lines, Ney Pivot Points, Ney Volume Oscillator, and other tools to identify the dominant market trend and align our trades with it. He also showed us how to avoid countertrend moves that go against the trend and are likely to fail.
By trading with the trend, we can increase our chances of success and reduce our risk. We can also capture the most profitable moves and avoid losing moves.
Manage Your Risk
Ney taught us that risk management is essential for successful trading. He showed us how to use Ney Lines, Ney Pivot Points, and other tools to place stop-loss orders, position sizing, and diversification to protect our capital and profits. He also showed us how to adjust our risk according to the market conditions and our trading style.
By managing our risk, we can survive in the market and grow our account. We can also avoid losing more than we can afford or giving back what we have earned.
Conclusion: Why You Should Read Richard Ney's Books And Study His Work
In conclusion, Richard Ney was a remarkable person who exposed the Wall Street manipulation and developed his own method of analyzing and trading the stock market based on price and volume movements. His books, The Wall Street Jungle and The Wall Street Gang, are classics that reveal the truth behind the market and provide valuable insights and information. His newsletter, The Ney Report, is a treasure trove of analysis and recommendations based on his method. His method consists of four main components: the Ney Box, the Ney Pivot Points, the Ney Relative Strength, and the Ney Volume Oscillator. His work and legacy have influenced and inspired many other successful traders and analysts who followed his footsteps.
If you want to learn how to trade the stock market successfully, you should read Richard Ney's books and study his work. You will learn many valuable lessons and principles that you can apply to your own trading. You will also gain an edge over other traders who don't know or use his method. You will be able to understand what the market is saying and where it is going, follow the leaders, trade with the trend, manage your risk, and make profits.
FAQs: Five common questions and answers about Richard Ney and his work
What are Richard Ney's books and where can I find them?
Richard Ney's books are The Wall Street Jungle (1959) and The Wall Street Gang (1974). They are both out of print but you can find them online on sites like Amazon or eBay. You can also find them in some libraries or bookstores.
Is Richard Ney's method still relevant and effective today?
Yes, Richard Ney's method is still relevant and effective today. His method is based on price and volume movements, which are universal and timeless indicators of supply and demand forces in the market. His method can be applied to any market, any time frame, any instrument, any style, any system, any platform, any indicator, any strategy.
What are some of the challenges and limitations of Richard Ney's method?
Some of the challenges and limitations of Richard Ney's method are:
It requires a lot of study and practice to master it.
It requires a lot of discipline and patience to follow it.
It requires a lot of data and analysis to apply it.
It may not work well in some market conditions or situations.
It may not suit some traders' personalities or preferences.
What are some of the best resources and tools to learn more about Richard Ney's method?
```html and tools to learn more about Richard Ney's method are:
His books, The Wall Street Jungle and The Wall Street Gang.
His newsletter, The Ney Report.
His website, www.richardney.com, which contains his biography, articles, interviews, videos, and other information.
His software, NeyTrader, which is a trading platform that implements his method and indicators.
His courses, seminars, and workshops, which are offered by some of his students and followers.
How can I practice and apply Richard Ney's method in my own trading?
You can practice and apply Richard Ney's method in your own trading by following these steps:
Read his books and study his work.
Subscribe to his newsletter and follow his analysis and recommendations.
Visit his website and watch his videos and interviews.
Download his software and use his indicators and tools.
Take his courses and attend his seminars and workshops.
Practice on historical data and paper trading.
Apply on real data and live trading.