Popularity Vaykoffa

Popularity Vaykoffa, as an analyst, is quickly growing. Even when he tried to limit the size of the next newsletter, nearly doubling its price, subscribers have brought him $ 60,000 for six weeks. By his own count, he “made a lot of money for themselves and their clients and subscribers, whose number exceeded 200,000,” until his health began to surrender, he turned entirely to publications and advisory services in 1928.

When his method was published as a correspondence course in 1931, he called it “a mixture of what I learned in 40 years of active experience on Wall Street.” His method is based on the law of supply and demand. When demand exceeds the per share offer, prices rise and when the proposal more in demand, prices fall. He compares the tape tickers Stock Exchange with a movie: “Every minute, we show that more – supply or demand.

Method Vaykoffa on a price chart, the volume and their relationships in time tells how the market, the group shares and individual securities react to the battle of the demand-supply. Find turning points – the final peak of the growing market, the last bear market low and intermediate teeth and small moves.

He is guided by the fact that every change in the market consists of waves of purchases and sales, which last for as long as able to attract followers. As soon as the followers of drying up, wave ends and begins a movement in the opposite direction.

Small daily wave formed in the big waves of 3 to 5 – items which, in the end, lined up in the bull and bear market moves to 10 – 20 points or more.

It acts in harmony with the wave, not against it, but only if the wave is significant. His philosophy focuses on the accumulation of shares: Buy on the downward wave, ride the small and medium-increasing waves, until you see a particularly strong, breaking wave. Then sell.

Using the method Vaykoffa involves work in both directions – to cover all shorts and enter into a long bottom, amid the panic and depression, or in an intermediate bearish movement, as well as long to sell all shares and enter into a short at the top of the boom or intermediate bullish move.