This board is about Timing the Trade the Wyckoff Way. To accomplish this objective please limit and focus discussions on the trend and position of the market, and on identifying stocks for potential speculation using the Wyckoff methodology. All are welcome to post as long as they focus on the market and stocks using Wyckoff principles.
The Wyckoff methodology was introduced in the early part of the 20th century and has proven to be very successful for over 80 years for many of its users. I was first introduced to the method in the 1980s and became a dedicated user of the process in the 90s when I started speculating for a living. I currently monitor nearly 400 stocks to which I add and subtract some issues every year. I focus on leading issues that are heavily traded by professional interests and have a history of working successfully within the Wyckoff process.
Successful Wyckoff speculators need to answer two crucial questions if they hope to obtain superior results. What is the most important thing to know? is the first question and What is the most important decision to make? is the second. The answer to the first is what is the trend and position of the market. The answer to the second is to determine what stock, if any, offers the best opportunity for speculation, once the trend and the position of the market is determined.
To assist in making the appropriate decision, Wyckoff users frequently follow a five-step process.
1) Determine the trend and position of the market and then decide if they should
be long, short or neutral.
2) Determine which stocks are stronger or weaker then the trend of the market.
3) Determine which of these stocks offer the best potential for the time frame of
ones speculation long, intermediate or short term.
4) Determine which stocks are most ready to move, those on the springboard
as Wyckoff often advised.
5) Timing ones speculation in the appropriate stock when the market is oversold
during or at the beginning of an uptrend move or overbought during or at the
beginning of a down trend move.
By following the abovementioned five steps in an orderly manner, Wyckoff speculators can dramatically increase the likelihood of entering a speculative position during the mark up or mark down phase. It is during the mark up or mark down phase that the objective to make the most in the least amount of time can be realized.
For anyone interested in learning more about the Wyckoff method a good place to start is the excellent book Charting the Stock Market-The Wyckoff Method by Jack Hutson. It offers a great deal of insight into how the Wyckoff methodology works. More detailed information can be obtained from The Stock Market Institute (SMI), which provides a detailed educational program for anyone interesting in the Wyckoff method. Hank Pruden, a professor at the School of Business at Golden Gate University, also offers educational programs and expertise in the Wyckoff methodology.
Disclaimer: Information concerning the market and any stocks mentioned are not recommendations to buy or sell. I may have positions in stocks that are mentioned. I make no warranties, expressed or implied, as to the fitness of the information for any purpose, or to any results obtained by anyone using the information. In no event shall I be liable for any direct or indirect damages resulting from the use of the information. Any decisions made by anyone using this information should be made solely on the basis of their own due diligence. |
