ES 43
XII. THE MONEY MARKET AND STOCK PRICES 47
XIII. MINOR MOVEMENTS IN PRICES 49
XIV. TECHNICAL CONDITIONS 51
XV. MANIPULATIONS 53

PART 4
TOPICS OF INTEREST TO SPECULATORS

XVI. MARGINAL TRADING 61
XVII. SHORT SELLING 65
XVIII. BUCKET SHOPS 69
XIX. CHOOSING A BROKER 71
XX. PUTS AND CALLS 73
XXI. STOP LOSS ORDERS 75

PART 5
CONCLUDING CHAPTERS

XXII. THE DESIRE TO SPECULATE 81
XXIII. TWO KINDS OF TRADERS 87
XXIV. POSSIBILITIES OF PROFIT 91
XXV. MARKET INFORMATION 95
XXVI. SUCCESSFUL SPECULATION 103

_PART ONE_

INTRODUCTORY CHAPTERS

CHAPTER I.

THE PURPOSE OF THIS BOOK

This book is written for the purpose of giving our clients some ideas of
the fundamental principles that guide us when we select stocks for them
to buy, but these principles are valuable to every person who trades in
listed stocks or in any other kind of speculative stocks.

First of all, we want you to get a clear conception of the meaning of
the word speculation, which is explained in the next chapter. Our
purpose is to protect you against losses as well as to enable you to
make profits, and it is very important that you understand how to
provide for safety in your speculating.

It is a well known fact that there are tremendous losses in stock
speculation, but we claim that almost all of these losses would be
avoided if all speculators were guided by the principles expounded in
this book.

"What" and "When" are two very important words in stock speculation, and
we cannot urge upon you too strongly to study carefully Chapters V. to
IX.

Chapters X. to XV. tell you much about the influences that affect the
prices of stocks, a knowledge of which should also be a guide to you in
making your selections.

Perhaps the most important chapter in the entire book is XXV., on Market
Information. A careful reading of this chapter should convince you that
much of the prevailing information about the stock market is misleading.
That fact alone accounts for many of the losses in stock speculati