Judging The Market By Its Own Action – 3M
1. The purpose behind Wall Street and the market is to finance businesses.
2. Some securities are good -others are not so good.
3. Seasoned securities are those on the market for a long time and with established earning power and value.
4. Tape and chart reading helps us to relate price movement and volume to the future course of stocks.
5. Always strive to select the most promising issues.
6. Study charts with the purpose of judging the behavior of the stock and the motives of those who dominate it.
7. Prices reflect strengths and weaknesses of stocks.
8. Important facts for operations in the market are:
a. price movement
c. relationship of price movement to volume
d. time for each movement.
9. When trading, ignore all tips, rumors, and other inside information.