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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.
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.
1. That You Can Put a Stock in Your Box and Forget It
2. That Success Depends on Having Enough Capital