Evening star., 1928-12-02

For more than year the daily news
papers have constantly reported news
of sensational days on the stock mar
ket. The volume of stocks traded in
as a matter of course on normal day
of 1923 has been far In excess OF. out
standing big days short time ago.
Four and five million share days no
longer are nine days wonders.
But with all this highely speculative
activity there have been fewer hard
luck stories of disastrous losses on the
exchange, of traders being wiped out
in fiurries, of suicides over the calling
of margins. and that whole train of
tragedies which for long seemed insep-
arabic from stock market trading.
One reason is that for a remarkably
long period the market has been a ris-
ing one, but this steady and sustain
ed upward movement has not been
without eddies, which for brief periods
have caused strong eCeSsionS-preciSe-
ly the sort of eventuality which former
ly caused quick losses. The real rea-
son seems to be that stock market
trading Is carried on on q more Scien-
tiflc basis than ever before. Traders,
even amateurs, have taken to studying
statistics. The layman recoils quite
naturally from so obviously dull a
study, but experience latterly has taught
him that he will avoid losses and reap
profits by overcoming his prejudice and
applying himself to an understanding o1
the laws of supply and demand and the
facts concerning those elements Whlcn
have an effect upon prices.
The day seems to have passed when
trading Is governed by stock market
TIPS. doled out to favoriteS in secret
overheard in brokers' offices or hotel
lobbies In place of such tips the mod
ern trader Is using statistics and with
fortunate effect.
w. M. Steuart, director of the census
in his annual report just submitted
says: "The United States ranks first
of all nations as a compiler of statis-
tics, these data covering practically
every important phase of our business
and social existence. During the last
fiscal year the Census Bureau published
nearly 100000 items, each containing
a number of figures representing some
phases Of our social, industrial or busi-
ness activity"
When 1t is realized that the Bureau
of the Census Is but one agency of the
Federal Government which complies
and makes public statistical data. it will
be seen what vast store Of helpful
material is available to the man who
desires to be intelligently informed.
Trading on Scientific Basis.
Stock market trading Is not a mat
ter of luck. Prices 60 up or down be-
cause of certain basic factors govern
ing the commodities represented by the
stocks dealt In. The trader who equips
himself with information regarding
these factors stands q vastly greater
chance Of winning in the market than
he who proceeds by guesswork, by
vague tips and by lunches.
For long the American public mind
has conceived of the stock market
speculator as a rather sporty type,
fiashily dressed and hedight with dia-
monds-a type but little removed from
the accepted race track type. This has
largely been changed, as witness two
very interesting and by no means iso-
lated cases. One Is the case Of quiet,
somewhat self-effacing Middle West
ern college professor. He was teach
er OF economies and incidentally to
preparing for his classes necessarily
studied economic trends, production
and consumption, wage rates, whole
sale and retail prices, railroad rates,
and the many other factors entering
into any modern economic picture. He
discovered. almost by chance, that his
studies put him in position to have
fair advance knowledge of what was
likely to happen to price trends.
Although lacking capital, he started
experimenting with his theories and his