In preparing this work the temptation to enter more extensively into fundamental principles has been great. It would be impossible to do more than suggest a line of procedure in a single volume, and only the most elemental requisites are set forth. And not only do the prescribed limits of this volume forbid any exhaustive discussion, but such discussion is unnecessary. On every subject of importance we have books written by men of soberness and judgment, each a specialist in his field. A bibliography has been appended to this volume suggesting such works as are considered helpful. In this bibliography an attempt has been made to choose such books as are clear and simple, rather than those which are profound. If the task as herein outlined, appears formidable, it may be said that it is absolutely necessary, and not so difficult as may appear. Before the student has entered far into the subject, he will find the matter interesting and will very quickly realize that the well grounded contentions and discussions of men who examine and diagnose economical questions correctly, are of more value than the combined tips, guesses and poorly based opinions of all the professional speculators and gamblers from one end of Wall Street to the other. This form of basic knowledge is just as important to the active trader as it is to the investor. If he can correctly judge of the general trend of future prices, he may operate safely _with_ that trend instead of floundering around helplessly in a slough of indecision, or possibly working directly against the current. If, for example, he has good solid reasons for expecting ultimately higher prices, he will not be disturbed by temporary reactions and, instead of being frightened out of his position through ignorance, he will take advantage of such reactions to make his purchases or cheapen his holdings. Knowledge, in this particular line as in all others, is the foundation of successful ventures. II The Cycles of Speculation