Overview | Wyckoff Theory | Core Methodology | Reading Supply & Demand | Stock Selection

The Wyckoff Method gives the trader and investor the tools to earn a consistent profit from trades and investments while at the same time minimizing the risk to and preservation of one’s trading capital.  Each trade has an objective where profits are to be taken.  At the same time, risk is also identified.  Most trades are entered near “the danger zone.”  This ominous Wyckoff phrase simply means that trades are initiated as close to the point where, if breached, the trader knows immediately that the market is not ready to move in the trade’s direction.  Best to exit and wait for a better opportunity.  In this way, risk is minimized.  Loss remains small leaving the trading account in a sound position.  And, because the objective is known, risk – reward assessment can be made and only trades meeting specific risk – reward parameters (for example, risking $1 for the opportunity to earn $3 or more in profit) may be taken.  Selecting high quality trades with solid risk-reward criteria is a further safeguard to capital while making the most of opportunities for consistent profit.