stock manipulator

Chapter 3 The Challenges of Stock Market Speculation (2)
Example: You bought a stock at $30.The next day, it quickly pulled to $32 or $32.5.You immediately become nervous, worried that if you don't take the profit, the next day may see it wiped out--so you sell to close the position and take this small profit, and this is exactly the time The moment you should be hopeful for the world!Why are you worried about losing the $2 profit that you didn't have yesterday?If you can make $2 in one day, you might make another $2 or $2 the next day, and maybe $3 the next week.As long as the stock is operating normally and the market is judged correctly, don't rush to reap profits.Know that you are right, otherwise you will not make a profit at all.Let the profits keep running.As long as the market doesn't behave in any way that worries you, take courage, stand firm in your convictions, and stick to it, and it may eventually add up to a nice profit.Looking at the opposite situation again, suppose you bought a stock at $5, and it fell to $30 the next day, showing a loss of $28 on the books.You probably don't worry that the stock could drop another $2 or more the next day.This is not the case. You just regard the current change as a temporary reverse fluctuation, and feel that the stock market will definitely return to its original price the next day.However, at this time, you should have a lot of worries.After that $3 loss, things could go bad, another $2 loss the next day, and maybe another $2 or $5 next week or the next half month.This is when you should be afraid that if you don't stop your losses then, you may be forced to take even bigger losses later on.This is when you should sell your stocks to protect yourself from escalating losses.

Profits can always take care of themselves, and losses never stop automatically.The speculator must take a stop loss measure on the initial small loss to ensure that he does not incur a large loss.In this way he will be able to maintain his strength and, when a constructive thought forms in his mind, be able to rally and take a new position with the same amount of stock as he did when he was wrong in the past.The speculator must act as his own insurance broker, and the only way to ensure continued speculation is to carefully guard his capital account and never allow losses to be large enough to threaten future operations so that they can recover.In short, I think that successful investors or speculators must have a good reason to enter the market before they act. They must determine the time to enter the market and establish a position for the first time according to certain criteria or guidelines.

Again, I would like to emphasize that there must be a definite time for stock market entry to enter the implementation stage. I firmly believe that any speculative and patient person can devise a specific method that can serve as a guide for his (her) market entry operations. Policy, so that he (she) can make a correct judgment when entering the market.Successful speculation is by no means based on guesswork.To be invincible for a long time, an investor or speculator must have guiding principles.Some of the methods I use may be of no value to others.Why is this so?If these methods are of great value to me, why should they be of no use to you?The answer is: no investment or speculation method is 100% correct.If I use a method that I appreciate, I know what will happen.If my stock doesn't perform as expected, I know right away that it's not the right time, so I take my position out of the market.Maybe after a while my method shows that I should re-enter the market and I get in again, probably exactly right this time.I believe that anyone who takes the trouble to study stock prices can create a discipline that will help him or her in future investment operations.In this book I have contributed opinions which I have considered to be of value in speculation.

Many traders have average price charts or moving average charts for various stocks.There is no doubt that these charts or moving averages often outline the trend of stock price movements, so they track the stock price up and down.Personally, the charts of these stock prices do not appeal to me.I think these prices put together are too puzzling.However, I am as passionate about making good records of stock price changes as anyone else is about making tables.Maybe they're right, maybe I'm wrong.

My preference for records stems from the way they give me a clear picture of what's going on in the stock market.Only when the time factor is taken into account in the stock market operation, these records can play a role in predicting the next movement of the stock price.I believe that by making proper records and taking into account the time factor (which I will explain in detail in a later chapter), one can make accurate predictions about future movements in stock prices.But these records must be made patiently.

You must familiarize yourself with individual stocks or groups of stocks, and if you can correctly match the time factor with the stock price records you have made, you will soon be able to decide when to start trading.If you record correctly, you will be able to pick the leading stock in a group.What I repeat over and over again is that you have to insist on keeping your own records.You have to do these things yourself, you can't let other people do it for you.You will be amazed at how many new ideas you will generate while doing these things that no one else can give you.Because they are secrets that you discover, and you should keep these secrets.

In this book I will also give you a few taboos for investors or speculators.One of the main rules is that one must never turn a speculative venture into an investment.The reason why stock traders lose money is because they regard speculation as an investment and hold on to stocks so that they cause huge losses.

You may often hear stock traders say things like: "I don't worry about stock market fluctuations and margin changes. Because I'm not speculating, I buy stocks to invest, and if the price goes down, eventually the stock price will go back up." .” Unfortunately, these investors bought stocks that were good investments at some point, but they all encountered bad market conditions later.Therefore, some so-called investment stocks often become purely speculative stocks.Some stocks are even delisted, and the original "investment" evaporates along with the investment shares.These things happen because of the misunderstanding of the so-called investment concepts. When these so-called "investment" concepts face the new environment, it may make the initial purchase of investment stocks lose their profitability.Before investors realized the changing situation, the value of the stocks they invested in had dropped significantly.Therefore, an investor must, like a speculator, protect his capital when taking speculative risks.Those who like to call themselves investors must do this to avoid becoming speculators in the future-as is the case with trust funds, you have to be careful to prevent the net value of the fund from depreciating.

多年前，大家都认为把钱投资到纽约纽黑文 &哈佛德（NEW HA鄄VEN&HARFORD）铁路公司比存在银行更安全。1902年4月28日，纽黑文每股股票的市场价格是255美元。1906年12月，芝加哥密尔沃基&圣保罗（Milwaukee&St.Paul）的价格为199.62美元每股。1906年1月芝加哥西北公司每股价格是240美元。1906年4月9日大北方（Great Northern）铁路每股价格为348美元。所有这些股票都支付了丰厚的红利。

现在，看一下这些具有投资价值股票的表现。1940年1月2日，这些股票价格如下：纽黑文 &哈佛德（NEW HAVEN&HARFORD）铁路公司每股0.5美元；芝加哥西北公司（Northwestern）每股大约0.31美元。大北方（Great Northern）铁路每股26.62美元。1940年1月2日，没有芝加哥密尔沃基&圣保罗（Milwaukee&St.Paul）的股价信息，但是在1940年1月5日，其价格为每股0.25美元。

It is easy for me to list a large number of stocks that are not what they used to be, stocks that had extremely high investment value at that time, and have little value today.Investing failed, along with the gradual disappearance of the wealth of so-called conservative investors.

Speculators also lose money in the stock market.But I believe in such a point of view, compared with the huge losses caused by the so-called investors who let themselves go, the losses caused by pure speculation are very small.

I think so-called investors are really gamblers.They make a decision, bet on it, wait for it to change, and lose all they invested if they make a mistake.Speculators may also be buying stocks around the same time.But if he is a wise speculator, he will keep a good record, and the danger signal warns of bad times.He will take immediate action to minimize losses, and then wait for a favorable opportunity to re-enter the market.

When a stock starts to turn down, no one can tell you how far it can go.Nor can anyone guess the ultimate height of a rising stock.A few concepts should be kept in mind.The first point of view is: Never use the high stock price as a reason to sell.You might watch a stock go from $10 to $50 and think it's overpriced.However, at this point you should judge, what is preventing the stock price from climbing from $50 to $150 when the company is well managed and profitable?After the stock price has risen for a period of time, many people think that the stock price is too high and take profits, so they lose more profits.

Conversely, don't buy a stock just because it's dropped significantly from its highs.It is likely that such a decline has its own internal reasons.Maybe the stock price is still at a high level at this time.Try to forget about the high price of the stock, and base the research model of the stock on the basis of time and price.

When I know by the record that the stock market is in an uptrend, I buy whenever a stock makes new highs after a correction in the course of its run.It's the same way when I'm short a stock.Why do you do this?Because at that time I was following the trend.My record is signaling to me that I should proceed.

I have never bought a stock on a pullback nor shorted a stock on a rally.

Another point of view: If a stock has lost money on the first trade, it is not advisable to trade again.Never spread your losses, keep that in mind.

(End of this chapter)