The psychology of speculation : $b The human element in stock market transactionsHarper, Henry Howard
Science
The psychology of speculation : $b The human element in stock market transactions
Harper, Henry Howard
Speculation; Stock exchanges
Retired business men suffering from _ennui_, have often had recourse to
the stock market as a means of stimulating their emotions and expanding
their fortunes; with the result, in the first of these purposes they
have usually succeeded beyond their expectations, while in the second
they have met with uncharted obstacles. Some years ago when many of
the great trusts were in process of formation a well known Pittsburgh
magnate sold out his business to the United States Steel Corporation
and later bought a home in New York and turned his attention to
stock speculation. After plunging into a boiling market and buying
thousands of shares at top prices, the trend eventually changed and he
found himself on the crest of a tobogganing market with more than a
hundred thousand shares of speculative stocks. At length when the pace
threatened both his fortune and his peace of mind, in a fit of disgust
he dumped his holdings overboard and proceeded to damn the market, the
broker and everything else, including himself for being such an unlucky
simpleton.
[Illustration]
“My dear Mr. Blank,” said his broker, “you are possibly quite justified
in all your abuse, except that of yourself, to whom you really should
apologize, since you do yourself a great injustice. You have had six
months’ experience in this game at an expense of a little less than
two millions of dollars, whereas at the pace you began you were due to
lose at least five times that amount but for your rare judgment and
cool-headedness.”
“But why in hell didn’t you tell me all this before?” inquired
the irate customer. To which the broker calmly replied, “It’s my
business to _take_ orders; not to give directions to a man of your
understanding.”
Public-domain text, read in full here on John Shaqi.
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