Trading Perspectives -
Historical Events,
Market Behaviors
and Human Nature
"Trading Perspectives"
On Human Nature
"There is a very important message here: People don't change... The point is that because people are the same, if you use sufficiently rigorous methods to avoid hindsight, you can test a system and see how it would have done in the past and get a fairly good idea of how that system will perform in the future. "
Larry Hite
"Since investors continue to repeat the same type of behavior from cycle to cycle, an undertaking of the historical relationship between certain price averages and market indicators can be used to identify turning points. No single indicator can ever be expected to signal all trend reversals, and so it is essential to use a number of them together to build up a consensus."
Martin J. Pring
Technical Analysis Explained
"As is usual with hot new issues, particularly in such manic markets as that of 1968, most of the original issue had soon found its way into the hands of professional traders. Many small investors had come in later, buying from the professionals after the stock had been talked about in brokerage offices and mentioned in the market letters and pushed by the eager commission producers - and of course, after its price had shot up almost out of sight. "
John Brooks
The Go-Go Years
On Conflicting Role Of Analysts
"But the biased researched pumped out by the Wall Street analysts may have been the most significant factor in pushing the markets to their unsustainable highs during the bubble years. Ostensibly, the job of the analysts was to recommend what stocks investors should purchase.
But throughout the 1990s, they gave credibility to the overvalued markets to millions of new investors, who were largely unaware that the analysts had taken on a more conflicted role of recommending stocks and helping their firms win the lucrative investment banking deals from the same companies that helped pay their own outsized salaries."
Charles Gasparino
Book: Blood On The Street
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