Richard W. Schabacker

"The stock market is made up, generally, of two large groups, the insiders and the public."

And, furthermore, it is important to be one of the insiders, or at least to know what they are doing, because it is that group which generally originates major moves."

As a matter of fact, the author uses the term 'insider' to denote not merely this small group which has access to private information, but also to denote the trader who has made a study of trading methods, who is more grounded in fundamental theory and technical practice than the 'man on the street'."

"Now comes the danger for the long-pull investor.  Yes, he bought with the idea that nothing could induce him to sell.  He was going to hold for the longpull appreciation and pay no attention to intermediate reactions.  But now  why, the country is going to the dogs, the stocks that looked so good a year or two ago now look weak enough for receivership.  Selling would mean tremendous loss, but maybe if he sells now he can recoup some of his losses by buying his stocks back later at still lower prices, after things have cleared up a bit. 

This is the tragedy of the longpull investor.  It is no exaggeration to say the greatest amount of public selling is done in such a situation, just when stocks ought to be bought instead of sold, just when inside accumulation is about completed, when the long bear market is about ready to reverse itself into a bull movement.  The public usually sells at this seemingly darkest moment, when stocks should be bought for the longswing, just as it usually buys at the seemingly brightest moment, when the longswing stock holdings ought to be sold."