The Washington times., 1930-11-29
BY A. r. TOWNER

by A. ~ AO"AN
"Why can't I make money IN
the stock market?" is the usual
question an investor asks himself.
1t sounds very simple that all a
person has to do is to buy them
when they're cheap and sell them
when they're dear. To detect
buying and selling points IS a
difficult art. There are several
methods used to determine turn.
ing points, but the most practical
and successful method is by the
use of stock charts.
Like most things, a little knoWl-
edge is dangerous. A person who
is engaged in some occupation
can not afford the time to carry
as many charts as is necessary
for him to get a real picture OF
the stock market. If he carries,
say 20 charts, he may pick out
stocks which are in a down trend
and from those few charts come
to the wrong conclusion that the
market is headed downward. Our
service carries nearly 200 stocks,
and we find that they are none
too many. Another important
error that the average chart
student makes is to neglect to
show volume of sales as we'll as
price range.
Limited Charts
From q limited number of
charts the layman may arrive at
q certain conclusion that the
market is going up or going down
as the case may be, and take a
position in a stock which he has
not charted over a period of time.
Every stock on the Exchange acts
differently, and unless he has
complete picture of the market
his little chart training will cause
him to become so utterly confused
that he is bound to lose his
money.
The Better Business Bureau has
a Slogan-"InveStigate Before You
Invest" and it is sound policy
to see a stock charted over a
period of time in order TO get a
true picture of the value of that
security. The chart, if properly
interpreted. tells the story. 1t
contains all the many influences
which go to make up the value
Of that stock. 1t applies TO the
long-pull buyer or to snort-swing
trader equally as well.
Leave Tips Alone
Listening to tips of stock tip
sterS who have an ak to grind
will cause him many sleepless
nights. Another dangerous tend
ency of the average trader, who
keeps only a few charts for
short period. is to assume that
he is always in a certain type of
market, such as a typical bull or
bear cycle. If he has only opera
ted or bought stocks in a bull
market, he can only see that side.
II his experience consists of par.
tlclpatlng in a bear market he is
apt to become so pessimistic that
he will fail to see any of the
typical turning points in a bear
market.
Statistics on which most aG-
visory services make their recon-
mendations are valuable at times.
but are defective for the simple
reason that insiders know the real
condition of the company before
statistics are available for the gen
eral public. If future reports are
going to be bad or the dividend Is
to be cut, the stock of that par
t1cular company will begin to act.
poorly from a chart standpoint
and will disclose that something
is wrong, even if the student does
not know the trouble.
Earnings Reports
Certain companies do not report
earnings or other information ex-
cept once year, and anyone max
ing investments in such a COM
pany without seeing it's stock
Charted over a period of time is
not making an investment-he is
simply gambling. Most chart stu
dents do not realize the impor
tance of So-called support points.
Another mistake that the chart
student makes is in interpreting
a n1anipulative move. A stock