| Fundamentally, all market activity is a response to the | | | | a point when the fact of an ill president had already |
| interaction of personal opinion. Somebody wants to | | | | been discounted, Ike's political significance, as a |
| buy, somebody wants to sell, and thereby a market is | | | | president who could not succeed himself, was on the |
| made. | | | | wane. Etc. |
| Either way, the impulse represents a human judgment | | | | Undeniably, however, all of these arguments were |
| of how business is going, how the market is reacting | | | | based on guesses as to the shape of the future, given |
| to the business trend, and how, under these | | | | one set of circumstances or another. And it is the |
| circumstances, this stock or that one will fare. The | | | | unpredictability of the future which inevitably injects |
| fascinating thing is that regardless of the situation, two | | | | emotion into stock market transactions. Pondering the |
| essentially contradictory points of view-to buy and to | | | | past and scrutinizing the present, investors-professional |
| sell-can always be reached. | | | | and non-professional alike-seek signs and portents |
| Information can move a share price or currency | | | | which will predict the impact of tomorrow on their |
| dramatically, even if it is not 100% correct. | | | | fortunes. |
| The same influence may not govern each case; the | | | | Since the future is largely a blank map, investors must |
| man who buys Alcoa may have become convinced | | | | do the best they can with whatever current |
| that aluminum has a bright future, while the man who | | | | information they can acquire to carry them to the |
| sells may simply be taking a profit on his holding; but | | | | frontier of tomorrow. |
| the fact remains that differences can be reconciled in | | | | Much of it-make no mistake-is extremely useful. But it |
| a trade. | | | | must also be said that in the absence of sure-fire |
| The motivations of buyers and sellers are not well | | | | criteria, the investment world examines every scrap of |
| enough understood for any very precise theory to be | | | | possibly relevant information for clues. |
| constructed around them, but it seems reasonable to | | | | The result is that the new investor, eager to acquaint |
| launch this chapter, and the two which follow-all of | | | | himself with business and financial news, soon finds |
| them concerned with the hard information that | | | | that his problem is not obtaining information, but digging |
| presumably influences investors-with some recognition | | | | himself out from under-and discovering how to |
| of the emotionalism that is also involved. Much of it is | | | | evaluate-the flood of facts and statistics that inundates |
| highly sophisticated these days; it has been a long time | | | | him. |
| since the blind panic of the dreadful days that heralded | | | | Do not be dismayed. In the first instance, you are |
| the Crash and the depression; but it is emotion | | | | reading for general information, to familiarize yourself |
| nevertheless. | | | | with the field. |
| As recently as September, 1955, when the market | | | | You will wish to know the health of the economy, the |
| plummeted nearly 32 points for a loss of $14 billion in | | | | specific condition of various industries, and the activities |
| values on the news of President Eisenhower's heart | | | | of individual companies. And you will be attempting to |
| attack, we had dramatic evidence that the market | | | | relate this news to the fluctuations of the market and |
| does not have absolute control of its nerves. And, by | | | | the performance of particular stocks. It may seem to |
| contrast, in December, 1957, the market recovered in a | | | | be a great deal to absorb, but much of it will be |
| few hours the losses occasioned by momentary | | | | information you normally pick up, anyway. Only now |
| alarm over the President's cerebral occlusion. There | | | | you will be applying it for its special relevance to your |
| are, of course, many practical-and credible | | | | new interest in investment. |
| -explanations for both responses: the first occurred as | | | | Today you can use share trading software for shares |
| an election year approached, Ike's symbolic importance | | | | and Forex software that can help you predict future |
| was still immense, the business philosophy he | | | | currency prices to help you trade more safely. |
| represented was in jeopardy, the second occurred at | | | | |