The Theory of Stock Exchange SpeculationCrump, Arthur
General
The Theory of Stock Exchange Speculation
Crump, Arthur
Speculation
Supposing a broker is not directly interested in any particular stock
when a client who is in doubt what to do consults him; it does not then
follow that the client can depend upon getting absolutely disinterested
opinions. The broker may have just put some other clients into a certain
stock, and with a view to his own advantage, by helping to make money for
them, he will lean probably to some extent in the direction of advising
others to purchase the same stock.
[Sidenote: ALL THE EGGS IN ONE BASKET.]
There is an old saying that it is unadvisable to have all your eggs
in one basket, a saw that is constantly quoted among both _bona fide_
investors, as well as among speculators. A broker is not desirous that
his clients who speculate should be interested very largely in one stock.
He prefers to have the liability spread over the market, for obvious
reasons. If a client fancies a particular stock, or has good reasons
for believing it is about to improve, and he goes to his broker with a
view to increase his stake, he will not receive the same encouragement
as if he selected something else. The influence thus brought to bear
arises from selfish motives, and proves again that the client should keep
his own counsel. If he have no decided views himself, it is certain he
had better do nothing, for speculation thus entered upon is doubly and
childishly haphazard.
[Sidenote: TRAPS FOR THE PUBLIC.]
[Sidenote: THE PUBLIC AS SPECULATORS ARE BULLS BY NATURE.]
[Sidenote: A Case of Roasting the Bulls.]
[Sidenote: A Cut off the Loaf and Pass it on.]
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