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【正文】 tion of the direction and reversals of trends, however, is only half of the problem. Its specific side is also very essential. The What Question Although the technical student can arrive at useful conclusions as to the trend by studying the averages, practical trading in the end requires the purchase and sale of specific shares. Thus, it bees necessary to determine which particular issues are more or less attractive from time to time, in order to take the greatest advantage of the timing of buying and selling, which may be suggested by a study of the When question. Essentially, the What question is a study of the relative supply of and demand for shares of specific panies. If the prices of all shares moved closely together (percentagewise), in any advance or decline, there would be little need for this department of the technical approach. The wide variations in the fundamental factors which have a bearing on each individual corporation, naturally are the primary cause which requires constant selection of issues, if the stock trader is to obtain the greatest benefits from the risks he takes when he buys and sells shares. Fundamental and Technical Approaches Combined Although some writers concerning technical studies have chosen to take the attitude that the technical approach is more direct than the fundamental approach, and thus for the average trader represents the best means of making greater profits, the author chooses to take the stand that a neat bination of the fundamental and technical approaches forms not only the best plan of operation for the large investor, but is also the logical method for the trader of moderate means. Although it is true that a study of stock price trends includes a reflection of all the fundamental forces, and in addition, the psychological factors which, it has been argued, can substantially affect the correct timing of mitments, nevertheless there seems to be no justification for assuming the attitude of an ostrich, and blindly disregarding entirely the study of causes in favor of a study of effects. Practically all of the outstanding technical students make a careful study, or at least are broadly conscious, of the fundamental situation. Take, for example, the typical statement which is noted below, from the writings of CJ. Collins, dated September 28, 1935. Collins is noted for the interpretation of stock price trends in terms of the wellknown Dow Theory. Among those possible nearterm developments which would encourage optimism as to the broader outlook for business would be strength in railroad stocks. The rail list has been sluggish since July 1933 because there has been no material expansion in the demand for and the production of heavy or durable goods. When this demand, so necessary to basic or sustained revival in this country, asserts inself, a heavy upturn in carloadings will eventually follow. Well ahead of the heavier traffic and larger rail earnings, however, would be a vigorous rise in prices of railroad shares in anticipation of what is to e. The market, it must be remembered, always looks ahead. It is because of this relationship between the rails and the durable goods industries, and the market39。s habit of discounting, that the rail average now takes on an added significance. Technical Studies The Direct Approach Perhaps the chief reason why the technical approach has been so much more widely used in recent years is explained by the fact that the average trader finds it more direct. Without the necessity of a broad economic training, or the constant study of the financial position of numerous panies, the technical approach, with a few relatively simple studies, enables the average trader of moderate or small means to be conscious of the important changes in price trends, with only a fraction of the effort and knowledge necessary in the case of the fundamental approach. Naturally, the technical approach also appeals to many persons because the vast majority are inherently lazy. Its relative simplicity, however, is perhaps its greatest danger. When the average trader gets the idea that a few technical studies, casually observed, are all that he needs, he is usually well on the road to ruin, or at least his capital account is on its way to substantial depreciation. The trouble in most such cases is that the trader fails to realize soon enough that, although the technical approach is direct, and far more simple than the fundamental, nevertheless, it has its plications, demands constant study, and the application of reasonable judgment. However, the technical approach is ideally suited for the trader of moderate means as the average man, engaged in other business, cannot hope to make a prehensive study of fundamentals on which to base the buying and selling of shares. Many persons who realize this, assume that the logical procedure, then, is not to do any of one39。s own thinking, but instead to purchase one of the many investment bulletins issued by various anizations which cater to the demand for skilled opinion. Although such bulletins, particularly those issued by the more reputable services, can be mighty helpful in bringing to the attention of the average person both the fundamental and technical factors which appear to be influencing stock price trends, such bulletins often fall down because the subscriber is either unable to interpret them, or cannot fit the suggestions made therein into his own speculative problem, with any consistent success. Thus, technical studies unquestionably can be of great value in two ways: first, for that small group of persons who like to do their own thinking, and secondly for the vast group of lazy individuals who choose to buy their judgment readymade. The latter group