Stock Market Technique, No. 2

There is no sweeter business than trading in stocks when you know how. I do not deny that the untrained trader may make money. He will at times, but in most cases he will fail to keep it. What is the best time to buy or sell? At the zoological moment, as they say among the bulls and bears. Never make a speculative transaction unless the prospective profit is several times the amount of your risk. And limit the risk.

Only those who fail to realize the risk will venture their resources in stock speculation without first learning how. To treat the stock market as one does betting on the races is to overlook one of the greatest opportunities for legitimate money-making. Stock speculation conducted under scientific procedure is a reputable and meritorious avocation. It is not gambling; it is using intelligent foresight.

The President of the New York Stock Exchange says this country needs speculators; their stock market operations benefit the community; they aid in creating a broad market. In attempting to extract profits from the stock market, are you employing sugar-tongs or steam dredges? Are you nibbling a little here and there, or are you scooping out profits in bunches? The man who thinks he knows the stock market is usually his own worst enemy, because in the majority of cases he merely has a large furry ear open for tips. When one of these happens to go right, he flaunts himself on his astuteness.

Contents:

• Trading in Stocks as a Profession
• Technical Position of Woolworth
• Trading Stocks as a Profession-Second Installment
• What Partridge Really Said to Livermore
• Stock Market Forces Compared with the Mechanical
• Buying Stocks on Weakness
• Study of Behavior of Stocks
• Short Selling Principle Made Clear
• The Law of Financial Success
• B.aruch-A Most Successful Speculator
• Misleading Wall Street Expressions
• Small Swings Total More Than Big Moves
• Astrology and the Stock Market
• Stock Market Regulation
• No One Win~ What Others Lose
• Old Timer Analyzes Some Market Letters
• The Trader’s Insurance
• The Trader’s Paradise Is Now
• Watch the Whole Market

Stock Market Technique, No. 2 By Richard D. Wyckoff