Produced by The Online Distributed Proofreading Team at http://www.pgdp.net (This file was produced from images generously made available by The Internet Archive) THE THEORY OF STOCK EXCHANGE SPECULATION. BY ARTHUR CRUMP. With Preface and Annotations by H. W. ROSENBAUM. NEW YORK: H. W. ROSENBAUM. 1887. COPYRIGHT, 1886. BY H. W. ROSENBAUM. JONES PRINTING CO. PRESS, 47 Broad St., New York. PREFACE. Some years ago I came across a book, called “Crump’s Theory of Stock Speculation,” which had gone through several editions in England; and the practical wisdom expressed therein impressed me so forcibly that ever since then I formed the project of publishing an American edition. The reader may be astonished that, as a broker, I desire to give such a book a larger circulation than it possessed heretofore, as the natural conclusion would be that it might injure my business. I feel, however, that it is not so, and think that a broker loses nothing by doing his duty in warning his clients against danger, and showing them the pitfalls. I do not quite agree with the author of the book on every point, especially when he seeks to convey the impression that it would seem almost impossible that any profit could be derived from Stock Exchange speculation. During my long experience I have seen many speculators accumulate large fortunes, and I believe that when speculation is conducted by a clear-headed man, as a matter of business and not as a matter of amusement, it offers great chances. Where the strength of Mr. Crump’s work lies is in his showing what attributes of character a man must possess to be successful, and with these attributes a man must prove successful in stock speculation as well as in any other business. Condensed, these attributes are: first, a clear head; second, capital; and third, patience. I do not agree with Mr. Crump, that a speculator, to be successful, must be a hard-hearted, selfish man. I found it different with most of the prominent men in Wall Street. Of course, if a Gould or a Vanderbilt buys up a whole railroad, he cannot very well take many people into his confidence; but these men are not what is generally called speculators—they are generals or diplomats, and they are not different in their actions from generals in warfare or diplomats in politics.