The Different Kinds Of Day Trading Stocks (part 2)

Experience has shown that when a rise commences in a Secondary Leader, the Leaders are about done in their advance and distribution is taking place, under protection of the strength in the secondary day trading stocks and others in its class.

Professional traders used to call these day trading stocks "Indicators." The absence of inside manipulation in day trading stocks leaves the way open for pools to operate, and many of the moves that are observed in these groups are produced by a handful of floor or office operators, who, by joining hands and swinging large quantities of day trading stocks, are able to force their stock in the desired direction.

For example, U.S. Steel is swayed by conditions in the steel trade, and the speculative temper of the general public, assisted occasionally by some insiders. No other day trading stocks on the list is such a true index of the attitude of the public, or the technical position of the market.

Including those who own the day trading stocks out-right, and those who carry it on margin. Reports of the steel trade are most carefully scrutinized, and the corporation's earnings and orders on hand minutely studied by thousands.

This great public rarely sells its favorite short, but carries it on margin until a profit is secured, or until it is shaken or scared out in a violent decline. So, if the day trading stocks are strong under adverse news, we may infer that public holdings are strongly fortified, and that confidence is strong as well. If Steel displays more than its share of weakness, an untenable position of the public is indicated.

At this point public sentiment becomes intensely bullish and spreads itself in the low-priced speculative shares. Insiders in the junior steel day trading stocks take advantage of this and are able to advance and find a good market for their holdings.

Day trading stocks find their chief inspiration in the orders for cars, locomotives, etc., placed by the railroads. These orders for day trading stocks are dependent upon general business conditions. Consequently, the equipment issues can seldom be expected to do more than follow the trend of prosperity or depression.

We should introduce ourselves to the principal speculative mediums and their families, each of which, upon closer acquaintance, seems to have a sort of personality. If we stand in a room with fifty or a hundred people, all of whom we know, as regards their chief motives and characteristics, we can form definite ideas as to their probable actions under a given set of circumstances.

So it behooves the tape reader to acquaint himself with the most minute of details pertaining to these market identities, also with the habits, motives and methods of the men who make the principal moves on the Stock Exchange chess board.