Security Analysis
Benjamin Graham
While this stand will inflict hardship upon the stockholders when market prices fall, this is part of the original bargain, in which the stockholders agreed to take most of the risk in exchange for the surplus profits.
Hence thoughtful chartists admit that continued success is dependent upon keeping the successful method known to only a few people.
Reklam
But the margin trader is necessarily concerned with immediate results; he swims with the tide, hoping to gauge the exact moment when the tide will turn and to reverse his stroke the moment before. In this he rarely succeeds so that his typical experience is temporary success ending in complete disaster.
The more intelligent chart students recognize these theoretical weaknesses, we believe, and take the view that market forecasting is an art which requires talent, judgment, intuition, and other personal qualities. They admit that no rules of procedure can be laid down, the automatic following of which will insure success.
... there can be no such thing as a scientific prediction of economic events under human control.
Chart reading cannot possibly be a science.