Wyckoff, Richard D.

Richard Demille Wyckoff (November 2, 1873 – March 19, 1934) was a stock market authority, founder and onetime editor of the Magazine of Wall Street (founding it in 1907), and editor of Stock Market Technique.

Wyckoff implemented his methods in the financial markets, and grew his account such that he eventually owned nine and a half acres and a mansion next door to the General Motors' Industrialist, Alfred Sloan Estate, in Great Neck, New York (Hamptons).

As Wyckoff became wealthier, he also became altruistic about the public's Wall Street experience. He turned his attention and passion to education, teaching, and in publishing exposés such as “Bucket shops and How to Avoid Them”, which were run in New York's The Saturday Evening Post starting in 1922.

Continuing as a trader and educator in the stock, commodity and bond markets throughout the early 1900s, Wyckoff was curious about the logic behind market action. Through conversations, interviews and research of the successful traders of his time, Wyckoff augmented and documented the methodology he traded and taught. Wyckoff worked with and studied them all, himself, Jesse Livermore, E. H. Harriman, James R. Keene, Otto Kahn, J.P. Morgan, and many other large operators of the day.

Wyckoff's research claimed many common characteristics among the greatest winning stocks and market campaigners of the time. He analyzed these market operators and their operations, and determined where risk and reward were optimal for trading. He emphasized the placement of stop-losses at all times, the importance of controlling the risk of any particular trade, and he demonstrated techniques used to campaign within the large trend (bullish and bearish). The Wyckoff technique may provide some insight as to how and why professional interests buy and sell securities, while evolving and scaling their market campaigns with concepts such as the "Composite Operator".

The teachings of Wyckoff are still taught at the Golden Gate University in San Francisco.

Wyckoff married three times: first in 1892 to Elsie Suydam; second to Cecelia G. Shear, and third to Alma Weiss. Wyckoff charged in 1928 that his second wife, Cecelia G. Wyckoff, whom the media dubbed a Prima Donna of Wall Street, had wrested control of the Magazine of Wall Street from Mr. Wyckoff by "cajolery." The media celebrated separation ended in an agreement where he received half a million dollars of the magazine company's bonds.

[edit] Wyckoff Terms

Composite Operator. Wyckoff was thorough in his analysis of the trading range. One tool that Wyckoff provides is the concept of the “Composite Operator.” Simply, Wyckoff felt that an experienced judge of the market should regard the whole story that appears on The Tape as though it were the expression of a single mind. He felt that it was an important psychological and tactical advantage to stay in harmony with this omnipotent player. By striving to follow his foot prints, Wyckoff felt we are better prepared to grow our portfolios and net-worth.

• Jay Gould
• James Keene

[edit] Wyckoff today

Applied in today's markets, Wyckoff's method is different than it was in the past.^{[citation needed]}

No more can you assume that the reason prices move is because large operators are moving it.[citation needed] An abundance of small traders can move the market easily.[citation needed]
You must develop the ability to translate price action, and the volume that drives that action, into trading opportunities.[citation needed]
Anything but what is inherent in the market is subjective overlay that usually just ends up making you lose time and money.[citation needed]

[edit] Personalities of Wall Street

See List of personalities associated with Wall Street.

[edit] Sources

• Pruden, Henry O. Wyckoff by Action Sequence, Golden Gate University, Ageno Business School. San Francisco, California.
• Pruden, Dr. Henry O. and Fraser, Bruce. “The Wyckoff Method Lectures.” The Golden Gate University. (Fall 1992, Spring 1993).
• "The Wyckoff family in America : a genealogy," Part II, page 375. Published by The Wyckoff Association of America, 1950.

• Time - The Weekly Magazine. Volume XII, Number 24. December 10, 1928.
• Time - The Weekly Magazine. Volume XIII, Number 5. February 4, 1929.
• Time - The Weekly Magazine. Volume XXIII, Number 12. May. 9, 1932.
• Wyckoff, Richard D. How I Trade and Invest in Stocks and Bonds. 1924.
• ---. Stock Market Techniques - Number One. 1933.
• ---. Stock Market Techniques - Number Two. 1934.
• ---. Wall Street Ventures and Adventures Through Forty Years. 1930.