PREFACE TO THE FIRST EDITION
In writing this book the prime idea of the author is to write a sequel to his book, Successful Speculation a Business, because speculation is a business exactly the same as any other line of endeavor. In fact, speculation is more of a profession or an art than ordinary commercial business. Therefore, the intention of the author is, first, to show conclusively that there is a science in speculation, the same as in any profession; second, the same as in any line of business, a dealer in the purchase and sale of stocks and commodities physically or in contracts for future delivery is a gambler with all the inherent risks of outright gambling if he enters into such transactions without proper preparation and knowledge; third, to logically prove that there is a science in trading in future contracts in stocks or grain, the knowledge and application of which reduces the risk in speculation to the level of all other lines of business.
There are very few books, in fact the number is almost negligible, that cover this subject as it is covered in this book. The method taught is not entirely new, but as promulgated is the result of many years of study.
The author insists upon it being clearly understood that the method which he terms The Science of the Interpretation of Market Graphs is not a "get rich quick" scheme, plan or mechanical rule by which profits are assured. There is no intention even to imply such an idea. The author's intention is to prove that Graphs of the action of the market price show in pictorial form the psychology of the mass mind as influenced by world conditions; that the future trend of prices ofall commodities is based upon the law of occurrence or recurrence as shown by study of price action as clearly set forth in understandable form in graphs of past price movements; but that judgment is paramount in correlating the facts and applying them successfully in buying and selling commodities.
The author faithfully believes that, no matter what regulations or restrictions are placed on trading in contracts for future delivery in the commodity or security markets, as long as prices are quoted, the psychology of the market will be clearly shown in the graph record.
Some systems or sciences used in forecasting the market are especially good for bull markets and others are exceptionally good for bear markets. The Science of the Interpretation of Market Graphs is the only science that we have found to work with either a bull or a bear market. It always indicates when to go with the market.
In addition to the author's original interpretation of The Science of the Interpretation of Market Graphs, many methods of others are included. The author is indebted to E. P. Miller, Statistician and Preceptor, Pickell-Daniel, Inc., Commodity Statisticians; Robert Rhea, author of the book The Dow Theory; Thomas Temple Hoyne, author of Speculation, Its Sound Principles and Rules of Practice; Professor G. Wright Hoffman of the University of Pennsylvania, author of Future Trading; Ralph M. Ainsworth, forecaster and student of commodity economics, and others, all of whom are given full credit in the text.
The preparation of this book has required considerably over a year of hard, persistent application and study. It has been intensely interesting and it is the author's hope that his readers will not only be interested, but also gain from this study immeasurable benefit and material profit. It is not a subject that can be read lightly without application, but one that must be studied seriously and with the certain knowledge that the full measure of material benefit will be obtained from its perusal.