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 twenty 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.