ZF Capital

If there is one generalization about the whole subject of stock charts which we may suggest at the very introduction of our study, it is the definite caution that the reader be skeptical of any apparently sure thing.

– Richard Schabacker, Technical Analysis and Stock Market Profits

The successful plunger may make a great name for himself for many years, on account of his huge profits. But by far the majority make just as great names for themselves, and far more tragic ones, by later failure and disaster. No names need be mentioned but the reader is probably familiar with those great meteors of past market fame who have gone through one bankruptcy after another, and who have finally died in poverty, loneliness and despair.

Let the reader ponder this basic fact. Out of a thousand individuals who enter the market, he may read in the newspapers of two, because of their practical success. One of these will be a conservative and will be consistently successful and happy. The other will be a plunger and will very likely get later publicity because he has lost the fortune that he previously made.

– Richard Schabacker, Stock Market Profits

Chart theories often have an insidious habit of working almost perfectly for the beginner, and in such case he must guard himself carefully against over-confidence and thinking he has found a sure and easy path to rapid riches. In technical science he will find a trustworthy and profitable friend, but he will not find a substitute for study, common sense, and the other virtues of the consistently successful operator.

– Richard Schabacker, Stock Market Profits

If there is one generalization about the whole subject of stock charts which we may suggest at the very introduction of our study, it is the definite caution that the reader be skeptical of any apparently sure thing.

– Richard Schabacker, Technical Analysis and Stock Market Profits

The personal attitude of the plunger is likely to be one of daring. He risks so much of his capital on a single trade that he is also likely to risk much more in his judgment and analysis. He is likely to be abrupt, dogmatic and prejudiced in his analysis, if not actually slipshod in his methods. The very traits which lead him to risk such capital lead him also to substitute risk for knowledge, chance for study and a thorough weighing of the situation. And the results are much more apt to be disastrous on that account.

– Richard Schabacker, Stock Market Profits

When we become quite familiar with stock charts we shall find ourselves looking for various pictures and patterns formed by our charts, but if we are to be complete masters of our study and get the fullest benefits from our own analysis it is important that we do not entirely lose sight of the fundamental basis for the formation of those pictures and patterns.

That fundamental basis is in actual stock market trading, and actual stock market trading is the result of individual actions by many thousands of people, based in turn upon their own hopes, fears, anticipations, knowledge or lack of knowledge, necessities and plans. It is the danger of losing sight of this human element in stock charts that we must guard against, and since this human element is basic it may be wise to fit it into the foundations of our study at the very outset.

– Richard Schabacker, Technical Analysis and Stock Market Profits