I was reading section 7 again of W's course and am amazed by some of his trade placements. Particularly a short he takes on June 27th when price is closing on its high (page 23 first full paragraph if you don't have it memorized yet). He is basically selling at the exact top. I think i understand the reasons; price is exceeding a previous swing high (from May 9th), volume which had been very high during the beginning of the rally has bee declining for 3 days with the volume on the poke through diminished by a third. W. says, "This looks like bidding up to a new high in order to catch shorts... We therefore put out some shorts". Using SLA it seems we wouldn't get in until July 7th. Still a good location but W. was the master. Is there a better place to ask questions about section 7 or W in general? Is my understanding of W's thinking on target?
No, this is fine. This thread is more flexible than the others since it's assumed that those who went through the fire of the first three have a better idea of what's going on. And all this is based on W anyway. But I see what you mean, yes. The idea was to bid prices up in order to force shorts to cover, then put it to them by shorting what they just covered. You see this today in these parabolic moves. As I said somewhere else some other time, in confusion lies opportunity. Have that done in needlepoint. All this is hindsight, of course. 1931. Duh. I was impressed that Wyckoff never went back and changed anything after the market continued falling all the way into the middle of 1932. It's a good exercise in reading left to right.
I want to repeat this because it's going to be important: POKER RULE#39: When you take your emotions out of the game, other players' emotions become visible. When we are focused exclusively on our own emotions (as we often are), the emotion of others tend to be obscured. When we make ourselves neutral, however, we find that the canvas suddenly becomes blank and the emotions of others begin to appear.
I call BS. I doubt this guy ever even traded. He probably made all his money selling this information by mail and was a blow up artist like all the other failed gurus of his day. Where are his trading statements and verified tax returns? How will I know if his system works without this? He was probably trying to hook a whale so he could trade OPM. Seems logical right? If only I could somehow go back in time so I could challenge W to a meaningless bet or in some other way have a penis measuring contest. I would troll his mailing list so hard.
Do a little research GG. "Wyckoff implemented his methods in the financial markets, and grew his account such that he eventually owned nine and a half acres and a mansion next door to the General Motors' Industrialist, Alfred Sloan Estate, in Great Neck, New York (Hamptons). As Wyckoff became wealthier, he also became altruistic about the public's Wall Street experience. He turned his attention and passion to education, teaching, and in publishing exposés such as âBucket shops and How to Avoid Themâ, which were run in New York's The Saturday Evening Post starting in 1922."
I thought the days of trolling threads like this ended with the departure of Surf? Have I missed something?