Welcome to the FFES (Foundation for Economic Stabilisation) Case Study Course applying principles of mathematical probability to the production of profits from prognostication.
The old Romans were wise enough to know that things change and fluctuate. They therefore recognised that the best way to know what would probably happen in the future was to study how changes took place in the past. To symbolise this, their two headed Janus was their chief deity with one head confidently looking to the future as the other head had studied the past.
While it is true that few things are certain to happen in the future at a definite time such as the time that a certain person will die in the future, this mathematical probability has made tremendous profits for the insurance concerns that use it, as well as similar profits for investing individuals who employed it.
What are some of the important profit making principles that you are now about to learn to use. One is the application to price fluctuations of Newton’s law of physics to which the late Roger Babson attributed his fortune of over $50,000,000. The Action and Reaction Rule that states these are equal and opposite. Another is how drawing a single line will enable you to know where the price of any stock or any future is now headed and the probable time it will reach there. Then there are principles that enable you to switch positions so near to the turning points or pivots that start each new trend, that you may be constantly either long or short making money whether price is rising or falling. Also in each weekly letter on the right hand column you’ll see some abbreviations that are headed “reasons for actions taken”. As a course member now you’ll have the glossary of these abbreviations so you can now verify on your own chart that every change of position from long to short has a scientific reason. Have you ever seen elsewhere anyone making such information available. Many of our members have taken other courses and we hope you’ll find as they have that this one of yours in the best.
Besides the above principles that are unique to this Course you’ll also find what we have been informed are better ways of using other well known methods, and as an example we’ve added channel lines to the popular moving average method in a way that you’ll find helps eliminate some of the whip-saws the usual moving average followers frequently find troublesome. Then various members of the past have added improvements that bear their names, as you may do in this wide open field of probability applications to price fluctuations.
Your glossary of abbreviations is enclosed so that you may soon get the meaning of the abbreviations that summarise the rules. Other Course studies including some recent Course letters will follow soon.
So many investors have doubt as to the possibility of constantly predicting when and where prices will turn. Therefore the Marechal Chart is a good starting point for your studies as he was one of the first to use mathematics to show what the DJI would do during the coming 20 years from the time he copyrighted his chart.
Feel free to write whenever you have questions and I am confident you’ll be happy you’ve joined this wonderful group of investors who want to become “Good Stewards” as in the parables in Luke 19:11 on and Mathew 25:14 on if my memory is correct.
You investors are the life-blood of the economy. Without you there’s be no banks, chains or factories, etc. where a person could choose jobs, nor would the government be able to collect the taxes they now get. Your importance has been neglected, too long.
Alan H. Andrews, Trustee FFES.
You will find enclosed the first study of the Course concerning the ML (median line) Method. This enables you to know where the trend of anything that fluctuates at random is headed. What everyone wants to know is where the latest trend is headed, and where the next pivot (P) will be from which the reverse trend will start.
The probability of the next P being at the latest ML seems to be about 80%, and even without any additional rules that enable you to be constantly either long or short , the profit potential of this simple rule is tremendous for you.
Case study course rules
Median lines and MLH: the MLs enable the user to be one of the few who can tell where the prices are headed, and the place they will reach about 80% of the time, and when approximately that place will be reached. Slopes of alternate MLs of comparable length indicate the trend.
Of the two kinds of change in the Universe, flowing change and random change, we are indebted to Newton's invention of the Calculus that enables us to find out in advance the conditions that flowing change will produce in the future. His discovery of the natural law that Action and Reaction are equal and opposite in the field of physics also has been applied in the Course to the random changes of price movements in free markets. This application of the Action-Reaction law enables you to learn in advance where the probable reversals of price trends will come in the future. We owe this application to the late Roger Babson, who credited this law as the basis for his fortune of over $50,000,000.