(From The Author’s Preface) – Many years ago my attention was directed by eminent market authorities, to the merits of points and figures as a logical, basic and true method of recording stock price movements. From such records, the resulting harmonious patterns, and the indisputable evidence of countless past performances, it was claimed by these respected authorities that here indeed was to be found a dependable clue to the future price path of American securities so eagerly sought by investors and traders all over the world.
For the purpose of developing a logical aid to market operations, I tried other methods and consulted practically every known writer, guide, and authority in the financial field at that time. These efforts were finally rewarded when at last the Point and Figure Method was developed to such an extent as to be one of the most valuable aids of my vocation.
In my professional work of writing about, and advising on the subjects of investing and trading, I relied upon a fund of knowledge derived from reading, studying, and practical trading experience.
A long and intensive study of points and figures as a basis for methodical operations followed. The more I investigated their merits, the more convincing became the proof that price movements do not “just happen.” I soon found, to my delight and amazement, that this method filled the need for short and long term market operations. Here, at my disposal were sharper tools, precision instruments, dependable laboratory methods. Here was the solid basis of scientific method upon which hundreds of millions of dollars had assuredly been staked, over and over again, in the quarter of a century or more preceding my introduction to the method. Like Archimedes, I was able to say “I have found it!”
The Point and Figure Method, as a plan or background for investing or trading operations, is herein described in its theoretical phases and practical applications. The subject is capable of endless discussion, illustration and variation. Your time will be spared, however, for I hope to compress the gist of the method into this work. I desire to provide the student with this new working tool, which should enable him to operate, as do the insiders themselves, profitably and intelligently.
This method, if properly understood and mastered, should go a long way towards fortifying the serious investor or trader in his commitments, and preventing recurrence of the losses of the 1929-1933 era.
It was never necessary to accept such a defeat in finances or morale, marketwise, as the majority have experienced in the last major cycle, which had two distinct phases and culminations–the climax of June 1932,–and the anti-climax of March 1933. Both were anticipated by the Point and Figure Method.
The Point and Figure Method is complete in itself. If no other data or guide to market price movements were available, or if the selection of a single plan as the basis of anticipating stock price movements became imperative to the exclusion of all others, I would earnestly recommend the serious consideration of this inside Method as most reliable.
Accept then, this well-tried and proven guide and Method, with the author’s endorsement of its practical value. It is a substantial segment of the sum and substance of tested practices in price path appraisement. It is highly valued by men, organizations, institutions and interests who know its worth.