Wade Cook

I am going to say right off that I have lost quite a bit of money following the advice of Wade Cook, so this review isn’t going to pull any punches. People that are fans of his will say that I didn’t follow his advice well enough but I don’t think that is the case. Here is my quick story:

I first learned about Wade Cook when I was looking through a Zygon catalog about eight years ago (just about the time I was getting married).

At that time, Wade Cook was selling a system for getting into real estate and flipping properties, plus he was also selling information on how to set up living trusts and corporations. He wasn't actually setting them up, he was just selling the information.

I don't know how he got info on stock market investing but supposedly he was speaking at one of his real estate conferences and told people he was investing in the stock market and would anybody want to hear about it. The entire room (according to Wade Cook) erupted and the rest of history.

You can take the following information for what it's worth. I am not someone who just read 10 pages of one his of his books and decided that he was wrong about investing. I have read three different Wade Cook books, been a member of W.I.N. for six months, I also went to the wall street workshop for only $500 (don't pay $2,500, just wait for a special).

I will say this about his stuff...he knows what he is talking about, some of the time. He will tell you that he has a 95% success rate on certain types of stock trades, but my research has shown that number is closer to 50% to 60%. Four years ago I bought a tape set of his that I was extremely happy with. It detailed everything that you need to know about trading, puts and calls. I learned more from it than any other book, seminar or web site I have ever gotten involved with.

The real problem is in Wade Cook's methods and his trades. His results are not near what he advertises. I wish they were but they are not. I followed numerous trades on W.I.N. for a period of sixth months and many lost money. He did make money on quite a few but his average (like I mentioned) was probably 50% winners (maybe a bit more). I can probably do 50% just by guessing. These are not the results that he advertises.

Apparently my feelings are shared by people on the net as well. You will have trouble finding comments from people that are making any money with his systems.

I don't know if you are familiar with the "Motley Fools" or not. They are two brothers who have one of the most popular areas of America Online. They analyzed Wade Cook's systems and said "if Wade was doubling his money every 2.5 months, he would own Microsoft, you and I”.

I have read comments from his ex-seminar instructors who say they were pressured to make trades during seminars, even if the normal indicators weren't there. Why is this? Because he wants his systems to seem real.

In January 2003, his company filed for bankruptcy protection in the state of Washington. I think he wanted a Chapter 13 but he didn’t persuade the judge to go this route and it is a now a traditional Chapter 11.

I guess Wade’s options have run out (just a small stock joke).

Matt Gagnon