Reminiscences of a Stock Operator
What is the weekend rule I’ve seen you refer to? The weekend rule goes back to Richard Donchian in the 1970s and basically says that if the market closes in new high or low ground on a Friday, then it is likely to extend that move on Monday and early Tuesday. The significance for me is that if a market breaks out on a Friday, then I have a complete
... See moreJack D. Schwager • Unknown Market Wizards: The best traders you've never heard of
move. The second day would be the day the market closed below the low of the high day. The third day would be the day the market closed below the low of the second day. I would get out on the close of the third day. I assume those three days would not have to be consecutive. That’s correct. The third day could be two weeks after the first day. I de
... See moreJack D. Schwager • Unknown Market Wizards: The best traders you've never heard of
One gets to know the market over time. If everyone is optimistic and even people who don’t work with the stock exchange every day start chatting about it, it’s selling time, as sure as nails. By that time you have to have the cash in your hand, else you’re going to be very sorry. And if nobody is interested in the stock exchange anymore, it’s buyin
... See moreCarié Maas • Jannie Mouton: And then they fired me
same thing too, and the point spread is probably too wide. The concept that a market’s discounting mechanism is based on speculator participation, not price, is the most important thing that I know.