Movements In Stock Prices
It is due to the fact that stock prices constantly move up or down that
speculation is possible. Sometimes certain stocks remain almost at a
standstill for a long period of time, but at least a part of the stocks
listed on the Exchanges move either up or down. If one always could tell
just what way they were going to move, it would be comparatively easy to
make a fortune within a short time.
In the last t
enty years, a great deal of time and money has been spent
by statistical organizations in checking up statistics for the purpose
of ascertaining a definite basis upon which to predict future movements
in stock prices. Several of these organizations use very different
statistics upon which to base their conclusions, and yet their
conclusions are very similar. They have proved beyond any question of
doubt that some of these movements are clearly indicated by laws that
never fail.
We do not attempt in this book to explain the fundamental statistics
upon which the predictions of business cycles are based, but in the next
five chapters we explain some of the influences that affect the
movements in stock prices. Read these chapters very carefully, for your
success in stock speculation will depend very largely upon your correct
prediction of these movements.