Market Tactics by Humphrey B. Book Review of The Successful Investor by William Stock market theory and practice schabacker pdf. This is a terrific book on tape reading, a must-read for people wanting to learn tape reading.
It seems that most if not all successful discretionary traders have a strong foundation in tape reading, including Jesse Livermore, Nicolas Darvas, William O’Neil, and many others. This knowledge would help in recognising the activity on the tape. I would also recommend that this book be read at least twice. After the first read, practice applying what you have learnt. After sufficient practice, re-read the book again.
I found that I picked up and appreciated more points during my 2nd read. It is said that stocks seldom rise of their own accord, they will sag under their own weight unless they are pushed up. I believe this is true, for it is difficult to understand how any stock can remain active unless there is some motivating power behind it. One by one would traders take profits, or sell to get into some other commitment. Dying activity will not attract speculators. There are doubtless several pools, and many professional operators, all interested at the same time in some of our most active stocks. In order to make money from speculation we must trade in the active stocks — those stocks in which the professionals operate.
The winning combination for us as traders is a stock in which a pool is active, which has strong sponsorship and support from a bank or banks, and the earnings of which are known to be progressively on the increase. Then, our problem is in the timing of our commitments — when to buy and when to sell. If he wants us to know that he is buying, we should be chary. So, let us disregard hunches and wild conjectures. If he buys and sells, the record of his transactions will be on the tape. We must make our interpretation from the record.
The insiders have the greatest advantage over us in the minor fluctuations. It is my opinion that there is little use in trying to make money consistently by trading in and out of stocks hourly, or daily. The longer the trend, the more opportunity we have to be right. That is why I urge always that trading be confined to the intermediate trends.