TAPE TIPS

• Select only stocks that will move the soonest, fastest and farthest in Bear or Bull Markets; to limit losses and let profits run; and to make the most efficient use of investment capital (Trading in harmony with the Trend ).
• The true reason for today's fluctuations might not be known for days, weeks or months.
• Bad news generally comes out at the bottom and the good news at the top of the swings. The public usually buys on good news and sells on bad (trade on their emotions, not their judgment) Insiders and professionals do the opposite.
• Dow Theory places a high value on studying the action of the market's price movements, volume, and time based on the theory all the fundamental influences are already buried in the price before they become apparent.
• The action of the whole market tells you when the selling is better than the buying and vice versa. To become a successful trader, you must learn to judge by the action of the market. It is the action of the market which carries the greatest influence with insiders. Dow principle: The action of the market itself is the best indication of its future course.--Charts! Judge the market by the volume of transactions (light, medium, heavy) as well as the speed and momentum of the market in these various phases. Pay attention to the daily market volume and momentum particularly in the first and last hour.