Refresh and try again. Open Preview See a Problem? Thanks for telling us about the problem. Return to Book Page. This is a classic book for speculators, history buffs and market aficionados alike. Nook , pages. To see what your friends thought of this book, please sign up. Lists with This Book.
Reward Yourself
This book is not yet featured on Listopia. Elmer Alonzo rated it really liked it Nov 09, Otavio Ferreira Bertolo rated it it was amazing Dec 31, Jim Chao rated it it was amazing Sep 26, James Powell rated it really liked it Feb 29, Invars Lielais rated it really liked it Aug 29, David rated it liked it May 17, Nishun rated it it was amazing Sep 16, Middlelo rated it liked it Nov 01, Garygoodreads rated it really liked it Nov 10, Rajesh rated it it was amazing Jul 27, Kalpit rated it it was ok Mar 29, Craig M Norleen rated it liked it Jun 13, Michael rated it it was amazing Jun 25, Adam Nemecek rated it it was amazing Jan 30, Fanhow rated it it was amazing May 20, Jaganathan Sathiyanathan rated it liked it Dec 01, Curt Fox rated it really liked it Apr 01, Majid Amini rated it really liked it May 24, Mark Judd rated it really liked it Oct 03, Jerry Campbell rated it liked it May 18, Henry marked it as to-read Nov 16, CoreyR Jackson marked it as to-read Oct 06, Mel marked it as to-read Apr 26, Ambrish Kinariwala is currently reading it Dec 21, David Teixeira added it Apr 28, David Charest is currently reading it Aug 26, For instance, he would be wary about making an initial short sale of Smelters after a 15 point break, even if his indications were clear.
There might be several points more on the short side, but he would realize that every point further decline would bring him closer to the turning point, and after such a violent break the safest money was to wait for an opportunity on the long side. How to Distinguish a Rally From a Change in Trend A good way to do this successfully is to figure where a stock is due to come after it makes an upturn, allowing that a normal rally [i.
A rally is a temporary bounce. That is when a stock declines two and half points we can look for at least a point and a quarter rally unless the pressure is still on. In case the decline is not over, the rally will fall short. When his mental barometer indicates a change he does not wait for a stop order to be caught, but cleans house or reverses his position in an instant. Look Out for Accumulation Once You Know the Point of Distribution The operator who was watching only Union would have been surprised at this; but had he viewed the whole market he must have seen what was coming.
Knowing the point of distribution, he would be on the lookout for the accumulation which must follow, or at least the level where support would be forthcoming. Had he been expert enough to detect this, quick money could have been made on the subsequent rally as well. Operate in Stocks with the Widest Swings The Tape Reader must endeavour to operate in that stock which combines the widest swings with the broadest market; he may therefore frequently find it to his advantage to switch temporarily into other stock issues which seem to offer the quickest and surest profits.
There is another way of turning a dull market to good account, and that is by trading in the stocks which are temporarily active, owing to manipulative or other causes. If he has a couple of points profit in a long trade, there is no reason why he should let the stock run back below his net buying price. Here circumstances seem to call for a stop order, so that no matter what happens, he will not be compelled to pay out money. This stop should not be thrust in when net cost is too close to the market price.
A small reaction must be allowed for. How to Manage Stops Put in stop orders if a trade is carried overnight or if you cannot monitor the tape A stop should be entered against the possibility of accident to the market or the trader. Types of stops Arbitrary: The consensus of shrewd and experienced traders is in favour of two points maximum gross loss on any one trade. Suppose the initial trade is made with a one-point stop. Raise the initial stop above the level necessary to cover commissions. Raise stops when indications are not clear The original commitment should, of course, be made only when the trend is positively indicated, but situations will develop when he will be uncertain whether to stand pat, close out, or reverse his position.
At such a time it seems better to push the stop up to a point as close as possible to the market price, without choking off the trade. By this we mean a reasonable area should be allowed for temporary fluctuations. Use a trailing stop If a stock rises three points and then reverses one or one and a half points on light volume, he must look upon it as a perfectly natural reaction and not a change in trend. The expert operator will not ordinarily let all of three points get away from him. He will keep pushing his stop up behind until the first good reaction gets him out [i.
Having purchased at such a time, he will sell out again as the price once more approaches the high figure, unless indications point to its forging through to a new high level. When you push a stop close behind a rise or a decline, you leave the way open for a further profit; but when you close the trade of your own volition, you shut off all such chances…. This plan of using stops is a sort of squeezing out the last drop of profit from each trade and never losing any part that can possibly be retained. This will in most cases cause failure to get all of the moves int he one most active stock for the day, but should result in many small profits, and I believe the final results will exceed those realized by sitting through reactions with any one stock.
In a few moments it sold below Example 2 Suppose the operator sells a stock short at 53 and it breaks to With his stop at this point he has two chances out of three that the result will be satisfactory. The price may go lower and yield a further profit; The normal rally to 52 will catch his stop and enable him to put the stock out again at that price [i. But he can scarcely mourn over the loss of a further profit. Go with the Trend We have defined a Tape Reader as one who follows the immediate trend.
This means that he pursues the line of least resistance. He goes with the market — he does not buck it. When he goes with the trend, the forces of supply, demand and manipulation are working for and with him. A market which swings within a radius of a couple of points cannot be said to have a trend, and is a good one for the Tape Reader to avoid. Successful Tape Reading is a Study of Force and the Courage to Go with the Winning Side Successful tape reading is a study of force; it requires ability to judge which side has the greatest pulling power and one must have the courage to go with that side.
There are critical points which occur in each swing, just as in the life of a business or of an individual. Also compare its movements relative to other market leaders. It is an almost unerring guide to the technical position of the market. Should a stock fail to break on bad news, it means that insiders have anticipated the decline and stand ready to buy. Identifying Supply Absorption After a Break One of the muckraking magazines once showed that Rock Island preferred had been driven down to 28 one August to the accompaniment of receivership rumours.
Thousands of shares of stock were traded in per day, after a ten-point decline and a small rally. The transactions were very large — out of all proportion to the capital stock outstanding and the floating supply. If the volume of sales represented long stock, someone was there to buy it. If there was manipulation it certainly was not for the purpose of distributing the stock at such a low level. So, by casting out the unlikely factors, a Tape Reader could have arrived at the correct conclusion… we well remember that the indications were all in favour of buying the stock on the break.
- The BITCH-PROOF SUIT;
- Combat Training of the Individual Soldier and Patrolling.
- My Secrets of Day Trading in Stocks - Richard D. Wyckoff - Google Книги.
- What is Kobo Super Points?;
Shrewd Traders are Always Testing the Market The market is being put to the test continually by one element of which little has been said, i. These shrewd fellows are always on the alert to ferret out a weak spot in the market, for they love the short side. Lack of support, if detected, in an issue generally leads to a raid which, if the technical situation is weak, spreads to other parts of the floor and produces a reaction or a slump all around.
Or, if they find a vulnerable short interest, they are quick to bid up a stock and drive the shorts to cover. Other people are doing for him what he would do himself if he were all-powerful. Identifying Who or What is Manipulating the Stock is Irrelevant It is a matter of indifference to the Tape Reader as to who or what produces these test, or critical periods.
They constantly appear and disappear; he must make his diagnosis and act accordingly. Individual Stocks Seldom Buck the Larger Trend If a stock is being manipulated higher, the movement will seldom be continued unless other stocks follow and support the advance. Barring certain specific developments affecting a stock, the other issues should be watched to see whether large operators are unloading on the strong spots. Averaging is groping for the top or bottom.
The Tape Reader must not grope. He must see and know, or he should not act. When the tape tells him to close; When his stop is caught; When his position is not clear; When he has a large or satisfactory profit and wishes to utilize those funds for better opportunities. Not only must one cover quickly, but if the power of the movement is sufficient to warrant the risk, the operator must go long.
In a market of sufficient breadth and swing, the Tape Reader will find that when it is time to close a trade, it is usually time to reverse his position. This is because the large lots which have been distributed will probably come into the market as soon as weakness develops i. We have all heard people boast that their purchase was at the top eighth and that had the effect of turning the stock down.
Those who make their purchases after this fashion are quickest to become scared at the first sign of weakness, and throw overboard what they have bought. Therefore, the Tape Reader is picking out the stock in which he is likely to have the most help on the bear side. Lack of support in a stock, which is detected by shrewd traders, is also a good short target. The smaller quantities are like the feathers on an arrow — they indicate that the business part of the arrow is at the other end.
MY SECRETS OF DAY TRADING IN STOCKS by Richard D. Wyckoff
Stages of a Manipulative Operation A complete manipulative operation on the long side consists of three parts: Accumulation Marking up Distribution In the case of a shorting operation — the distribution comes first, then the mark down and the accumulation. He [the Tape Reader] does not buy it at once, because it may take weeks or months for the manipulator to complete the accumulation of his line, and there might be opportunities to buy cheaper.
By holding off until the psychological moment he forces someone else to carry the stock for him — to pay his interest. When the marking up begins he gets in at the commencement of the move, and goes along with it till there are signs of a halt or distribution. No trend had developed.
Discussion
His mistake was in not waiting for a clearly defined trend. If waiting for the buying was strong enough to absorb all offerings and turn the market , he would have done better to have waited until this was certain. When a stock holds steady within a half point radius it does not signify a reversal of trend, but rather a halting place from which a new move in either direction may begin [my note: What was its effect on the other principal stocks?
This proved that they were technically strong; that is, they were in hands which could view with equanimity a three-point break in a leading issue. Look for Stocks That Are Held by Strong Hands Both the market as a whole and individual stocks are to be judged as much by what they do as what they do not do at critical points. As it did not have any such decline, but only a very small reaction compared to its advance, the Tape Reader infers that Union is destined for much higher prices; that it offers comparative immunity from declines and a possible large advance in the near future.
A Reaction Usually Occurs After 3 or 4 Consecutive Days in One Direction It is seldom that the market runs more than three or four consecutive days in one direction without a reaction, so the Tape Reader must realize that his chances decrease as the swing is prolonged. The daily movements offer his best opportunities; but he must keep in stocks which swing wide enough to enable him to secure a profit [my note: Sell When a Stock is Due to React I became aware that a large percentage of my losing trades resulted from failure to close at the culmination of what I have termed the immediate trend.
- MY SECRETS OF DAY TRADING IN STOCKS.
- My Secrets Of Day Trading In Stocks by Wyckoff, Richard D.
- Le ricette dolci dellEx Pasticcere (Italian Edition)!
- .
It never touched there again, and in ten minutes was bid for 5, shares. Here I should have sold, as my buying indication was for that particular advance. Especially I should have sold when I saw the rise culminate in a spectacular bid which looked like bait for outside buyers. I knew the stock was due to react from this figure, and it did, but at the bottom of the normal reaction selling broke out in fresh quarters and the whole market came down heavily.
The result was that my profit was only a fraction of what it ought to have been. I should have sold when was noisily bid, and when the reaction had run its course, picked it up again, provided indications were still bullish. If they were not I would have been in the position of looking to get short instead of waiting for a chance to get out of my long.
Dull Periods Mark the Close of Each Chapter The factors that were active in producing the main movement, with its start, its climax and its collapse, have spent their force.
Join Kobo & start eReading today
Prices, therefore, settle into a groove, where they remain sometimes for weeks or until affected by some other powerful influence. Dull Markets Lead to a Pronounced Swing in One Direction … when prices are stationary, we know that from this point there will be a pronounced swing in one direction or another. There are ways of anticipating the direction of this swing. One is by noting the technical strength or weakness of the market. The resistance to pressure mentioned as characteristic of the dull period in March, , was followed by a pronounced rise, leading stocks selling many points higher.
When a dull market shows its inability to hold rallies, or when it does not respond to bullish news, it is technically weak, and unless something comes along to change the situation, the next swing will be downward. On the other hand, when there is a gradual hardening in prices; when bear raids fail to dislodge considerable quantities of stock; when stocks do not decline upon unfavourable news, we may look for an advancing market in the near future.
Constantly Be On Watch to Get In at the Start No one can tell when a dull market will merge into a very active one, therefore the Tape reader must be constantly on the watch… Thus he stands to benefit to the fullest extent by any manipulative work which may be done.