trading doesn't need explanations

"......when a stock is going up

no elaborate explanation is needed

as to why it is going up.

it takes continuous buying to make a stock keep on going up.

as long as it does so,

with only small and natural reactions from time to time,

it is a pretty safe proposition to trail along with it.

but if after a long steady rise a stock turns

and gradually begins to go down,

with only occasional small rallies,

it is obvious that the line of least resistance has changed

from upward to downward.

such being the case

why should any one ask for explanations?

there are probably very good reasons why it should go down,

but these reasons are known only to a few people

who either keep those reasons to themselves,

or else actually tell the public that the stock is cheap.

the nature of the game as it is played is such

that the public should realise

that the truth cannot be told by the few who know."





(reminiscences of a stock operator)