Stock Market Techique No.1 – Richard Wyckoff

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Description

Stock Market Technique, Containing the principal articles, editorials, and correspondence originally published in the magazine Stock Market Technique from March 1932 to July 1933, inclusive. Subjects included selecting the best opportunities, buying on bad news, using Dow Theory, cascaret system of trading and more.

Introductions:

Look for your money where you lost it. Losses are punishment for bad judgment.Are you riding a dead horse? Get off and get on a live one. When in doubt, stay out. If you are in,,and grow doubtful, get out. If insiders traded like outsiders the insiders would soon be outsiders.

The moment your diagnosis is completed it becomes a command to trade. Would you step into the ring with Gene Tunney without taking a boxing lesson? A stop-order a few points away is insurance against a large loss in case you are wrong.

Do not operate for the sake of making trades, but only for the purpose of making money. How to have lots of money with which to buy bargains in slumps and depressions: Sell out in booms.

The only fundamental factor that really counts in the stock market is The Law of Supply and Demand. How much could you have saved in the past few years if you had known how to limit your risk and when to sell out? When you realize that you are not beating the game you have prepared the way for your first step in learning how to beat it.

It is better to be out of the market for a week or a month than to make one wrong trade. Stay out and your judgment will clarify.

Successful trading depends on a systematic control of losses and the securing of profits in excess of those losses. An investment position is a great handicap when you are trying to convince yourself that the money is on the short side.

Most men make money in their own business and lose it in some other fellow’s. Why not make stock trading your business?

In Stock Market Technique, You can learn to profit by the great swings in prices from panic levels to booms and back again if you will abandon the methods that have in the past caused you to buy in booms and sell out in panics.

Contents:

• How the Law of Supply and Demand Operates in the Stock Market
• Forecasting the Wide Swings of Auburn
• Trading Methods
• The Public at the Crossroads
• Knowing How
• Why They Bought It
• Charts and the Dow Theory
• Rigid vs. Flexible Methods
• Wall Street Fallacies

1. That You Can Put a Stock in Your Box and Forget It

• The Higher Development of the Dow T heory
• The Tape Forecasted the Turn
• How the Technician Judges the Stock Market
• Why Study Statistics?.
• Speculation as a Fine Art by Dixon G. Wat s
• Judging the Market by Tests and Responses
• Wall Street Fallacies

2. That Success Depends on Having Enough Capital

• Exploding the Dow Theory
• The Real Value in the Financial Page of Your Newspaper
• More Inside Information
• Philosophy of Jay Gould
• What Will Put this Market Up ?
• Analysis of 4 1/2 Years of Forecasting by 41 Advisory Services and Publications
• Run Your Own Pool
• Spotting the Turning Points
• Maxims of Daniel Drew
• Figure Charts
• Don’ t Overvalue the News
• Stock Market Prices Fluid
• Why Stop Orders Are Caught
• Never Put Up Cash on a Margin Call — Three Lines of Defense Against Loss
• More Profit in the Swings Than in the Long Pull
• Don’ t Lean on Your Broker
• Trading from the T a p e
• The Technician Debates with the Fundamentalist
• The Best Stock — For Every Purse, Purpose and Personality
• Banker a Bear on Charts
• Advantages of a Neutral Position
• The Old Timer Says
• Philosophy of Famous Operators
• Letters from Our Readers
• Why Fundamentals Fail