this, however, is merely an incident in the main tendency of prices, which, as a whole, is in accord with the values which grow out of changes in earnings. Temporary movements in the market should always be considered with reference to their bearing on the main movement. The great mistake made by the public is paying attention to prices instead of to values. Whoever knows that the value of a particular stock is rising under conditions which promise stability, and the absence of developments calculated to neutralize the effect of increasing earnings, should buy that stock whenever it declines in sympathy with other stocks, and hold it until the price is considered high enough for the value as it is believed to exist. This implies study and knowledge of the stock chosen, but this marks the difference between intelligent trading and mere gambling. Anybody can guess whether a stock will go up or down, but it is only guessing and the cost of guessing will eat up most of the net profits of trading on pure guesses. Intelligent trading begins with study of conditions, and a justified opinion that the general situation is either growing better or worse. If general conditions are improving, ascertain if the particular stock to be dealt in is having a fair share of that general improvement. Is its value rising? If so, determine whether the price of the stock is low or high with reference to that value. If it is low, buy the stock and wait. Do not be discouraged if it does not move. The more value goes on increasing, the greater the certainty that rise in the stock will come. When it does come, do not take two or three points profit and then wait for a reaction, but consider whether the stock is still cheap at the advance, and if so, buy more, rather than sell under the assumption that the expected rise is underway. Keep the stock until the price appears to be up to the value and get a substantial profit. This is the way the large operators make their money; not by trading back and forth, but by accurate forecasts of coming changes in value, and then buying stocks in quantity and putting the price up to value. The small operator cannot put prices up, but if his premises are sound, he can hold stock with assurance that large operators and investors will put the price up for him. Vol. I. Nelson's Wall Street Library The A B C of Wall Street Com By S. A. Nelson. 164 pages, illustrated. pletely and accurately descriptive of the money and speculative markets, and also containing a dictionary of Wall Street words, names and phrases. Vol. II. The Anatomy of a Railroad Report and Ton Mile Cost By Thomas F. Woodlock. 116 pages. An analysis of railroad reports-written by an authority on the subject for investors, stockholders and students, together with a study in railroad economics of value to anyone interested in American railroad finance and management. Vol. III. The Theory of Stock Exchange Speculation By Arthur Crump. 125 pages. A volume that should be studied by every trader in stocks. Other volumes in preparation. The series is bound in cloth and leather and can be ordered through booksellers and newsdealers generally, or will be mailed postpaid for $1.00 each. S. A. NELSON, PUBLISHER 19 Park Place New York City HE object of this book is to give a simple and concise principles of ing in the United States, and it is successfully accomplished. It is designed to appeal to the outsider as well as the man in the bank. While by no means the last, or every word about banking, it can be accepted as an authoritative primer, covering a field that has hitherto been somewhat neglected. In view of the growth of commercial and economic education, the author hopes that the book will be serviceable to teachers and students as well as business men. The chapter arrangement is: Banking in General, Various Kinds of Banking, Capital Stock, Shareholders' Rights and Liabilities, Undivided Profits, Dividends and Surplus, Deposits, Checks, Lawful Money Reserve, Issuing Bank Notes, Borrowing Money, Loans and Discounts, Exchanges, Collections, Letters of Credit, Bonds, Mortgages and Stocks, Bank Reports, Examinations, Directors, Executive Officers, Internal Administration and Bookkeeping, and other suggestions. The student and young businessman cannot fail to find this little volume of decided value, and every banker would do well to place it in the hands of his clerks and depositors. 137 pages, 16 mo., $1.25, S. A. NELSON, PUBLISHER 19 Park Place New York City |