Richard Wyckoff
http://www.stressfreetrading.com
Richard D. Wyckoff modeled and found many common characteristics among the greatest winning stocks and the campaigns of some of the greatest stock market operators. After modeling the action of Jesse Livermore, Edward Wasserman, James Keen, J.P. Morgan, and many other big operators of his day, Wyckoff developed a trading system which helped to explain the boom and bust cycle in stocks. He analyzed the market and determine where risk and reward were optimal for trading. He emphasized the placement of stops and the importance of controlling the risk of any particular trade. He implemented this model and grew his account such that he eventually owned a mansion next door to the Alfred Sloan Estate in the Hamptons.
Wyckoff’s ideas are universal and may be applied in analyzing any market. His method principally uses price charting and volume studies as a means of analyzing and forecasting the stock market. It incorporates a common-sense approach to trading that emphasizes study, practice and risk limitation. It also takes into account investor psychology and provides insight into how and why professional traders buy and sell stocks. The book takes the reader step by step through the Wyckoff method: first, the basic principles; second, examples of the method applied to the bond market; and third, an outline of steps to put the method to use
