RTS
Vaykoff was intrigued by the stock exchange. He studied the market from top to bottom, when the only experience could be the only teacher. His first job in 1888, at age 15, was distribute shares, rushing back and forth on Wall Street, delivering and exchanging securities and payments to brokerage firms. By 1898, he moved to the auditor’s another brokerage firm, and gave his first $ 1,000 of profit on the stock market, selling 300 shares of the company, which released a new product – pneumatic horse collar. The age of 25 he opened his own brokerage office.
He saw the “mad losses on securities, which every year millions of people are not aware of the value of their risk and having a remarkably small knowledge of the market.” He sent letters to its customers every day on market conditions, doing research and publications in a monthly magazine in 1907.
As a broker, he saw behind the scenes game of large speculators, and understood “that there is an opportunity to assess the future course of the market for his own actions … that the actions of the shares reflects the plans and objectives of those who dominate them … that the basic law of supply and demand governs all changes in prices; that the best indicator of the future course of the market – the ratio of supply to demand. ”
He published his first method of technical analysis in 1908, and in 1911, at the insistent request of readers, began publishing the weekly forecasts, using analysis charts of price movements and volume.
Related to the neglect of Vaykoffu analysts use charts as a kind of Rorschach test, in search of formations, which signaled to the purchase, sale or retention. “Tech stock market is not an exact science,” he told his students. “Prices of shares made by the brains of people.” In his view, mechanical or purely mathematical analysis of the graphics can not compete with well-judgment.
Vaykoff also avoided the financial statements, news, earnings reports, and especially rumors, hints and half-baked theories of trade set out in the popular books on the market. ”
In his view, the analyst should be a detective, revealing the forces that influence the fluctuations in price and volume, market psychology, studying the human motivations that drive these movements, and general planning to funding a campaign to capture the action, when the charts show that they are in its most profitable stage.