ZF Capital » Richard Wyckoff

Thought of the Day (June 19, 2010)

ElfLord — Fri, 18 Jun 2010 21:56:04 +0000

It is stupidity which makes people “rush in where angels fear to tread.” And there is something about the Wall Street atmosphere which makes people think that whatever is to be done must be done at once, otherwise the opportunity will get away from them. I find that opportunities are coming along all the time, and that the majority are not as good as they look. So the best ones are worth waiting for.

– Richard Wyckoff, How I Trade and Invest in Stocks and Bonds

Thought of the Day (June 15, 2010)

ElfLord — Mon, 14 Jun 2010 21:50:19 +0000

Your judgment will become poorer from the very time when you decide that you know more about the market than the market is telling you. From that moment your results will be unsatisfactory, for in this trading business the tape is the boss. You must learn to obey its orders, doing exactly what it tells you. When you can accomplish this, you are on the high road to success in your stock trading.

– Richard Wyckoff, Stock Market Technique No. 1

Thought of the Day (June 11, 2010)

ElfLord — Thu, 10 Jun 2010 21:43:37 +0000

Study and practice are the two things farthest removed from the minds of the majority. Everyone knows that people who engage in speculation for the first time do not want to bother with such details. The average man who comes to Wall Street comes to speculate, although he may pay in full for his purchases. All he asks is to be told “something good.” That is not speculation, it is gambling; for speculation, to quote Thomas F. Woodlock, “involves the use of intelligent foresight.” Most people use neither foresight nor intelligence.

– Richard Wyckoff, How I Trade and Invest in Stocks and Bonds

Thought of the Day (June 7, 2010)

ElfLord — Sun, 06 Jun 2010 21:38:19 +0000

You should either make a business of trading or else not try to be a trader.

– Richard Wyckoff, How I Trade and Invest in Stocks and Bonds

Thought of the Day (October 12, 2009)

ElfLord — Sun, 11 Oct 2009 22:25:47 +0000

Consider everything that appears on the tape as an evidence of support and lifting power, or pressure and selling power. Continually compare the strength of these forces. Use all the judgment and reasoning power at your command. Endeavor to improve your judgment by constant study and practice. Strive to lift your judgment from commonplace to good; from good to better; from better to excellent.

– Richard Wyckoff

Thought of the Day (September 29, 2009)

ElfLord — Mon, 28 Sep 2009 22:24:46 +0000

The mechanical approach (to technical analysis) relies totally on observation. The judgement approach also depends heavily on developing a keen power of observation. The difference comes in what is being observed. In the mechanical approach, the investor is observing formations. He is provided with a set of models and then told to seek out as many carbon copies as he can find. The judgemental approach begins with a set of principles. The observation that is done is aimed at finding these principles at work in the market or a particular stock. When an investor finds one or more, he responds in a prescribed manner.

At this point, there might be an inclination to say, “what’s the difference?” There is a very basic difference. A formation is a constant. If a stock does not fit one of the molds, it is eliminated. It may produce an absolutely tremendous move, but in failing to produce one of the desired formations, it is branding itself as an outcast. And yet, there is still the ever present reality, that even in fitting one of the molds perfectly there is no guarantee of the desired result.

A principle, on the other hand, is more than a constant. It is an absolute. In the case of the market, it is a statement of condition that is unequivocally true. Given a certain condition, or set of conditions, the result will always be the same. These conditions may not, and usually do not, produce carbon copy formations. It is true that there are quite often similarities, but these are only general in nature and not a primary concern. What is of utmost concern is adhering to the principle. Quite frankly, this is more difficult than looking for formations. It takes more time and requires more skill. Proficiency does not come overnight.

– Richard Wyckoff

Thought of the Day (September 14, 2009)

ElfLord — Mon, 14 Sep 2009 08:24:01 +0000

A stock market operator must be as hard-boiled as a five-minute egg; cold-blooded as a fish; deaf to all gossip; blind to news; and dumb as a door knob when it comes to discussing the market with others.

– Richard Wyckoff