HABITS OF STOCKS The stock market is driven by human energy, i.e., prices are made through buying and selling of human beings, and as human beings have certain habits, certainly the market or the individual stocks reveal the habits and methods of the men who make markets. You should become thoroughly acquainted with the stocks you trade in, and by studying them, you will learn their individual moves which are peculiar to themselves. This is caused, as I have explained elsewhere, by a certain group of men or pools that operate in a stock for a long number of years. Investigate and learn all you can about the stock that you trade in before you make a trade, not afterward. Study the number of points each individual stock makes in its moves up or down. Note carefully the volume of sales on which it culminates in major or minor moves. Note whether it makes it bottoms or tops by a very fast run up or by a slow, creeping movement. Some stocks make sharp tops and bot toms, some make round tops, other make square tops, some make double tops and bottoms, some make triple tops and bottoms, while others only make the single, or sharp top and bottom. By a double or triple top I mean a stock reaching a certain level, then having a big reaction and moving up to the same high level a second or third time, and vice versa. TOPS AND BOTTOMS-FLAT OR SHARP Stocks are no different than human beings — they have their peculiar habits and moves. It is just as easy to tell what a stock will do by getting acquainted with it and watching its moves over a long period of time, as it is to tell what a human being will do under certain conditions after you have known him for many years. Remember that stock market movements are made by human beings; therefore they reflect what the human mind thinks and reveal the actions, desires, hopes, wishes and aims of the men who manipulate special groups of stocks that they are inter ested in. Stocks do not all move alike. Some are leaders, others are laggards; some are fast movers, some slow movers. The stocks that lead and reach top first make what we call on a chart flat tops — that is, they reach a level and remain there for several weeks or months, fluctuating up or down over a wide or narrow range according to the kind of a stock, but never getting much above the level where dis tribution started. These stocks, of course, are the first to lead a decline when a bear market starts. stock trading advice ~ unclaimed money |