Have you ever struggled to make sense out of a stock chart? All those squiggly lines that supposedly, to the anointed, divine the future course of a stock? Well, you're not alone.
I've recently run across a copy of an old (1931) classic, which I had thought to be out of print, written by Humphrey B. Neill titled Tape Reading and Market Tactics.
This book, in my opinion, is the best book ever written on not only how to read the tape, but also how to figure out what's going on behind the numbers.
Full of charts and graphs, Tape Reading and Market Tactics not only tells all about the mechanics that drive price action, it also contains excellent sections on human nature and speculation.
I've always considered Humphrey B. Neill, who also authored The Art of Contrary Thinking which, I believe, is out of print, to be the father of “the theory of contrary opinion", which is practiced by many successful market traders and investors.
Although new conditions will arise and legions of yet unborn generations of the trading public will appear, the old cycle of rallies and reactions will continue to roll on.
Not for nothing is the old Wall Street truism, “Money never leaves Wall Street, it just changes hands. "
Neill advocated studying the trading tactics of the masters, paying ones dues, and always be aware of what the crowd was thinking and doing. History reveals the crowd is always wrong when it is most important to be right.
Because No One Cares More About Your Money Than You
Good trading, Don Heggen