On a recent plane trip, yours truly polished off “How I Trade and Invest in Stocks and Bonds” by Richard D. Wyckoff.
Originally published in 1924, this short little book is a classic — well worth revisiting — and will later get a full review in its own right. (There is just something wonderful about old trading books.)
For now, though, the below passage is excellent — a classic demonstration of utilizing all the principles of the game.
Next in importance to knowing what to buy is the question as to when it should be done. (more…)
“Of course the same things happen in all speculative markets. The message of the tape is the same. That will be perfectly plain to anyone who will take the trouble to think. But people never take the trouble to ask questions, leave alone seeking answers. The one game of all games that really requires study before making a play is the one he goes into without his usual highly intelligent preliminary and precautionary doubts. He will risk half his fortune in the stock market with less reflection than he devotes to the selection of a medium-priced automobile.”