The Theory of Stock Exchange SpeculationCrump, Arthur
General
The Theory of Stock Exchange Speculation
Crump, Arthur
Speculation
One man, who was a great winner, evidently thought
exceedingly well of his own sagacity of head, and others also,
for they were very apt to follow his lead as to stakes, and
looked upon him with a sort of temporary and provisional,
though purely intellectual respect. But what quite convinced
me of the strength of this curious fallacy of the mind, was
that when I heard that the youngest of my companions had
actually come off a slight winner, having at the last moment
retrieved his previous losses by putting his sole remaining
two-franc-piece out of a hundred and twenty-five francs he was
willing to risk, on the number which represented his age, and
gained in consequence thirty-two times his stake, my respect
for his shrewdness distinctly rose, and I became sensible
of obscure self-reproaches for not having made use of like
arbitrary reasons for the selection of the various numbers on
which I had staked my money during the period of my own play.
It was true that there was no number high enough, sad to say,
for that which would have represented my own age, so that I
could not have staked on that,—but then, why not have selected
numbers whereon to stake that had some real relation to my own
life, the day of the month which gave me birth, or the number
of the abode in which I work in town? Evidently, in spite of
the clearest understanding of the chances of the game, the
moral fallacy which attributes luck or ill-luck to something
of capacity or gift, or incapacity and deficiency, in the
individual player, must be profoundly ingrained in us. I am
convinced that the shadow of merit and demerit is thrown by the
mind over multitudes of actions which have no more possibility
of either wisdom or folly in them than—granted, of course,
the folly of gambling at all—the selection of the particular
chance on which you win or lose. When you win at one time, and
lose at another, the mind is almost unable to realize steadily
that there was no reason accessible to yourself _why_ you won
and _why_ you lost. And so you invent—what you know perfectly
well to be a fiction—the conception of some sort of inward
divining rod which guided you right when you used it properly,
and failed only because you did not attend adequately to its
indications.
Public-domain text, read in full here on John Shaqi.
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