Chapter V: Modern Influences upon the Markets

1. A Fixed Line of Action 71

2. Closer Uniformity of Values in all Markets through the
Development of the Telegraph System 72

3. A speculator cannot hope to succeed in any degree, unless
his arrangements are as complete as those of a man
engaged in _bona fide_ business 73

4. The Diminution of Gluts in all Markets 73

5. Modern conditions render it more difficult than formerly
for Small Mercantile Houses to succeed 73

6. Every Commercial Revulsion destroys Houses of a Speculative
character, and throws the good business into the
hands of the large sound Establishments 75

7. The Extension of Long-wire Telegraphy 78

8. Money Famines should henceforth be as improbable of
occurrence as Corn Famines 78

9. Advantages derived from opening up communications with
the Corn-growing Provinces of Russia 80

10. The Growth of Wealthy Monetary Centres 82

11. Private Cipher Telegrams as exterior influences upon Prices 83

12. The Altered Character of interior influences upon Prices 84

13. The Creation of Securities to meet the Demand 84

14. Getting behind the Scenes 85

15. The Difficulty of “Cutting” a Loss 85

CHAPTER VI.

_Cacoëthes Operandi._

1. Waiting for Extremes 87

2. Reaction generally more rapid after a Sharp Rise 88

3. What Not To Do 90

4. Special Information 90

5. Much Money only obtainable as a certainty by Hard Work 90

6. An Average Instance of Haphazard Speculation 91

CHAPTER VII.

_The Pit-falls._

1. Hidden Forces Opposed to the Speculator 94

2. The Turn 95

3. The Danger of taking Advice 95

4. A Disinterested Opinion 96

5. All the Eggs in One Basket 96

6. Traps for the Public 97

7. The Public as Speculators are Bulls by Nature 97

8. A Case of Roasting the Bulls 98

9. A Cut off the Loaf and Pass it on 98

10. Short Periods in, and Long ones out 99

CHAPTER VIII.

_Speculation With Capital._

1. Restoring the Balance of Advantages 100

2. The Necessity of Some Capital 101

3. Capital to expend in Feints 102

4. La haute Finance 102

5. The Best of all Chances for a Speculator with Capital 103

6. The most Legitimate Form of Speculation, Pawning the Stock 104

7. When to Begin and when to Leave Off 105

8. Test of a Speculator’s Pecuniary Position 105

CHAPTER IX.

_Speculation Without Capital._

1. A Familiar Case 107

2. Bitter Experience 108

3. The Question of Seeing it Out 108

CHAPTER X.

_The “Tip” to Buy or Sell._

1. A Friendly “Tip” 110

2. Unloading at other People’s Expense 111

3. The Qualified “Tip” 111

4. The Unqualified “Tip” 112

5. “Tips” worked by Syndicates 112

CHAPTER XI.

_Speculation by Machinery._

1. Machinery in existence for directing Human Volition 114

2. The Patrician Investor 115

3. Administering Shares to the Public 116

CHAPTER XII.

_The Shifting of Speculation from the Higher to the Lower
Classes of Securities._

1. Speculation in Consols as a Hedge 120

2. Speculation has Changed its Venue 121

3. Increase of the Indebtedness of the States of the World 121

4. The Fluctuations in the Price of Government Stocks 121

5. High Class Stocks more firmly held than formerly 122

CHAPTER XIII.

_The Short “Turns,” or who makes the Profits?_

1. The “Turn,” a known quantity always against the Speculator 124

2. The “Turn,” a Loss in going into, and also in coming out
of the Market 125

3. The difference in the character of the “Turn,” as compared
with former times 125

4. Special Danger of Speculating in a Stock that is quoted
very wide 127

5. The “Turn,” the Income of the Jobber 128

CHAPTER XIV.

_In what respect is Speculation useful in Markets generally?_

1. Speculation for the Rise, which is both Legitimate and of
Benefit to the Community 129

2. Speculation for the Fall, which is both Legitimate and of
Benefit to the Community 130

3. A Reasonable Relative Value for all Commodities 131

4. The Three Classes into which Speculators may be divided 132