Specialists Trap

Here is a pattern that uses the smash day idea in yet another fashion. This idea comes from Richard Wyckoff who authored a course on stock trading in the 1930s. I have a good degree of affinity for work, because in 1966 and 1967, I worked right across from the library in Carmel, California, where Wyckoff wrote much of the material that in later years he donated to the library. As fate would have it, I stumbled on his donation on my lunch hour one day and there after broke bread with his...

Rich People Dont Make Big Bets

Rich people, who are generally smart, have learned that you don't bet the farm on one spin of the wheel, investment deal, or trade. Wannabe speculators are consumed with the notion that they will amass tons of money very quickly by making a killing. They become the hapless victims, as in the process they have become plungers. Yes, you can plunge once or twice in your life, but if you consistently plunge, you will lose on one of these wagers, and since you are betting it all, you will lose it...

E H Harrimans Rule of Making Millions

The Harriman family fortune, which endures to this day, was created in the early 1900s by Old man Harriman, who had started his career as a floor runner and wen on to become a major banking and brokerage power. He made a 15 million profit in 1905 from one play in Union Pacific. This speculator king focused on just railroad stocks, the hot issue of his era. In 1912, an interviewer asked Harriman about his stock market skills and secrets. The trader replied, If you want to know the secret of...

How to Use Smash Day Patterns

Smash Day Pattern

There are two ways to use these patterns. Let's first look at the pattern in sharp up and downtrends, trends you wish You were in or where you want to add a position. In such tight trend up moves the appearance of a smash down day, hidden or not, sets up our buy for the following day and is precise evidence the trend is intact and ready for traders to have another go at it. another race to the sun. In a downtrend, the reverse situation will be found to produce excellent indications of when to...

The Market Is Not a Coin Flip

If the Cootner theory is correct and market activity is random, then a test of day-to-day price change should be easy to establish. We can start with a very simple question If market activity is random, should not the daily trading range, each day's high minus the close, be just about the same regardless of which day of the week it is Also one should ask, If all price action is random, would you not expect the daily change, regardless of being up or down, just the absolute value of daily...

You Are Already a Commodity Trader

Whether you know it or not, you have been trading commodities all your life. Sure, you may have never traded a contract of Pork Bellies, but you have almost certainly traded a possession like a car, house, or antique for someone else's money or possession. If you have never done that, for sure you have traded time for money. You have traded your time as a teacher, lawyer, pipe fitter, or ditchdigger for someone else's money. So, you are halfway there. you just never knew it When we trade our...