Samuel Nelson - ABC of Stock Speculation (1902)

243 Pages·2007·7.61 MB·English

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THE A B C OF STOCK SPECULATION.
NELSON'S
WALL STREET LIBRARY.
VOLUME V.
The A B C of Stock
Speculation
BY
NELSON
S. A.
NELSON
S. A.
16 Park Place New York
1902.
Copyright,
PREFACE
Following the publication of The A B C of Wall Street
there were many requests for a book dealing with the prin-
ciples governing stock speculation. If there is one man
better qualified than another to produce such a book that
man is Mr. Charles H. Dow. Several attempts were made
to havehim write the desired volume but they were unavail-
ing. From time to time in his Wall Street career, extend-
ing over a quarter of a century, Mr. Dow has carefully
evolved his theories of successful stock speculation. They
are to be found in Chapters IV to XX, inclusive, and can
be commended to any one interested in stock speculation as
remarkable for their grasp of a subject about which so little
has been written and so much misinformation is gratui-
tiously offered the public. In the preparation of this little
volume thanks are also due to the Wall Street Journal,
the Evening Post, the Dow, Jones & Co.'s News Agency,
Mr. Alexander Dana Noyes, Mr. Daniel Kellogg, Mr. E.
W. Harden, and a number of brokers and speculators.
The reader of course understands that there is no royal
road to success in speculation. It would be fallacy to
undertake to show how money can be made. No infallible
plan has yet been discovered. Experience and observation
when intelligent, however, are valuable, and we are of the
opinion that the average speculator will find a study of
the following pages to be useful and profitable.
CONTENTS
THE A B C OF STOCK SPECULATION
CHAPTEB I. PAGE
OriginofStockBrok.ers,S.tock.Excha.nges.andS.tock.Specu.lation 11
CHAPTER II.
StockSpeculation l!T
CHAPTEB III.
StockSpeculationandGambling . . . . .21
CHAPTEB IV.
TheMoralityofWallStre.et ...... 25
CHAPTEB V.
ScientificSpeculation 28
CHAPTEB VI.
TheTwoGeneralMethodsofTrading . . . .31
CHAPTEB VII.
ThreeGeneralLinesofReasonin.g .. ... .. ..36
CHAPTEB vm.
SwingsWithinSwings . 39
CHAPTEB IX. ...
MethodsofReadingtheMarket... .. ... 42
CHAPTEB X.
TheOperationofStopOrd.ers ..... 46
CHAPTEB XI.
CuttingLossesShort 50
......
CHAPTER XII. PAGE
The DangerinOvertrading 54
CHAPTEB XIH.
MethodsofTrading 58
CHAPTER XIV.
TheOutofTown Trader 65
......
CHAPTER XV.
TheShortSideoftheMarket 69
......
CHAPTER XVI.
SpeculationfortheDecline 74
CHAPTER XVII.
.78
ConcerningDiscretionaryAccounts . . . .
CHAPTER XVUI.
TheLiabilityforLoss .82
......
CHAPTER XIX.
TheRecurrenceofCrises....... 86
CHAPTER XX.
FinancialCriticism 90
CHAPTER XXI.
ThePhysicalPositionoftheStockSpeculator . . . 103
CHAPTER XXH.
TemperamentandEquipment . . . . . .108
CHAPTER XXHI.
TheBrokerandhis.Clien.t .. .. .. .. ....111
CHAPTER XXIV.
TheBucketShop 114
CHAPTER XXV.
TheSpeculatorandtheConsolidatedExchange . , .129
CHAPTER XXVI.
TheTipster 140