The Richard D.Wyckoff Method of Trading in Stocks - TAPE READING AND ACTIVE TRADING - Trial
The Richard D.Wyckoff Method of Trading in Stocks - TAPE READING AND ACTIVE TRADING - Trial
The Richard D.Wyckoff Method of Trading in Stocks - TAPE READING AND ACTIVE TRADING - Trial
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Division 2 4
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A COURSE OF INSTRUCTION -3
IN h
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TAPE READING AND ACTIVE TRADING 4
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C O P Y R I G H T 1932
R ICHARD D. WYCKOFF, ON E
Niw York.
TABLEOF CONTENTS
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1 1 INTRODUCTION
2 1 JUDGINGTHE IMMEDIATETRl#fD
2 3 Buyingand SellingWaves
2 4-A Wave Chart of the Leaders
7 1 JUDGINGSTR$NGTHOR.W3AKNESS
9 1 TRADINGON INITIALACTIVITY
12 12 PractiaePersistently
Cs 1 CHARTSTUDIES
w 1 Amwriad Telephoneat Bottomof Reaction
Cs 3 AmericanTelephoneat Top of Rally
Cs 5 AlliedChmical at Bottomof Reaction
Cs 7 Allied Chmicd at Top of ~ly
Cs J. 1. (laseat Bottomof Reaction
Cs 1? AmericanCan Combinedwith Five Leaders
SUMMARYOFTHE RICHARD D. WUXOFF
00URSEIOFINSTRUCTIONIN TAPE READINGAND ACTIVE TRADING.
a
HoW to avoid over$tx the market.
How to ld.mi~,
roducqand elhinatq the risk.
~b~arket
orders vs. limited orders.
one-half to one-point
of their own, equipped with a ticker and other facilities. From these
on Tape Reading; and as the technique of active trading from the tape
are considered; we use only tho~e which relate to the factors: Price
tunities.
risk,then protectprofits.
market.
-M * *
of the stock ticker. It mims to detectthe mows that are Lik@y to occur
or reverseone’sopinionquickly;slso nerve,poise,decision,promptness,
by clevermsmipul.ation
of stop orders,a net profitover comiwission~,
taxes
ate fluctuations.
with this Method you, as a trader, search for your opportunit.ies
side of the market. Thus v:hen you start trading nuxt morning your mind
neutralposition.
At each mo.rningls
openingyou make a swiftanalysisof the market;
sensethe trend;’
decideon the best stock,and if conditionsare favorable,
you make your commitment. Then you watch the marketfor a confirmationor
contradiction
of the correctnessof your position. il.1.so for the psycholog-
the market price that you leave the way open for n furtherprofit,or you
for your risk must be kept down to a minimum. You will never take a big
loss. You will never be tied up. You can claanhousein an instant.
And you can stay away from the tickeras often tandas long m you wish.
the detailedtransactions
in certainstocksas they appearon the tape,
advancesand declines.
Reading end tradingfor the longor swingsis that it will aid you in
tion you then take with a smallrisk of one-halfto one point may later
side,and in{dicute
a run of ten, twentyor thirtypointsin your favor.
probabled3.stance
in points,you will greatlywidenyour marginof profit.
JUDGINGTHE IMMEDIATETREND.
scaleat the bottomof the verticallines, and the price scaleat the
left, corresponding
with the horizontallines. Specimensheetfollows.
be neutral.
Selectthe five leading stocks. At the openingof the market
tion this prows that tiw po$$tionof the dot is correct. If it goes
Them watch the new wave until it seemsto cam to an end. Place
sellingwave havo been complwtmd. You then know on which sideis the
most power -. the buyingor the sailingside. And all you have to do is
in n singleEMZlswion.
Thio is how you datectthe change: In an up trend,
when the selung wavoa begin to increasein time and distancesor the
closelyfor these chamgesfor they tell you when to buy and sell;when
is .anentirelydiff’orent
proposition,reqwiringless time and attention,
Copyright1932 by Rial%mxl
D. Wyakoff l% Sect&on2 Page 2
but havh$
uatmg 2 m
Wtv$eC1’kmr’t
this does not man that it will eontimm to dc so the next day. And it
do%n not fnmn that yOU $hotidWLmy any tmdtxi overnightfor this rmwn.
Tomorrowf 8 trendwill dofim its~f in the same W~. Lnd it is best not
extrmrdintqf reason in the action of the market. Such a rcmon would be,
mvmal or many pointsand thu$ ixmrmso the net averageof profiton all
M to 30 pm!.ntse
the traderU.owflhia profitto run accordingto instruc-
The Wawo Chart twdwm Tape Reading. Afteryou have used it for
a while,you ~ not need it. Yom aye and brainwill seo and record
of tho market.
Tho five leaders$hculdalwaysbe repr~sentative
shouldba r@l.acedand that the Iattw is the real leader. Apply this
activeto be included.
**-W
of ywterday.
(’IhelVave
Chart-PartII)
Fl 335
FIG.1
dip in the fourthperiodbringsout very
out aroundthe two previoustops. So now, the bears endeavorto break the
of supportaroundthe morninglow.
Prices sag a bit in the next fifteenminutw but the activitydies out
Period 9.
and few offeringsto be takenat this level,we stay long and wait for