nly instance where we
recommend a stop-loss order, but we do recommend it to our clients
sometimes, although seldom.

If the stock you own is selling at more than 100 we would suggest that
you make the stop loss order at least three points from the market, but
for stocks selling below 100, a two-point stop-loss order might be used.
However, the number of points should be decided upon in each particular
case. In the special instructions to our clients, we tell them when we
think they can use a stop-loss order to advantage.

_PART FIVE_

CONCLUDING CHAPTERS

CHAPTER XXII.

THE DESIRE TO SPECULATE

It is said that the desire to speculate is very strong in the American
people. That is why our country has made greater progress than any other
country in the world, because progress is the result of speculation. We
are not referring merely to stock speculations, but to the word in its
broadest sense. Every new undertaking is a speculation.

An inventor speculates on what he is going to invent. Often such
speculations result in losses, because many inventors, or
would-be-inventors, never accomplish very much. They spend their money,
time, and efforts, and probably live years in poverty, and then if the
invention is not profitable, they are heavy losers. Many inventors spend
the best years of their lives in poverty and never succeed. We hear a
great deal about some of those who do succeed, but very little about
those who fail--those whose speculations were unsuccessful--except when
somebody accuses them of being crooks because they solicited money for
the promotion of their inventions and did not succeed.

It is the same thing with every new business. It is purely a
speculation. It is a common saying that 95% of commercial undertakings
fail. We do not know that that statement is correct, but there is no
question but that the number of failures is very great, which shows the
great risk in going into a new undertaking. It is far greater than the
risk involved in stock speculating when it is done in accordance with
the advice given in this book.

Yet, there would be no progress without speculating of this kind. If
those entering a new business would make a careful study of the venture
before entering it, and would exercise greater care and judgment in
conducting it, the number of failures would be very much less. The same
thing is true of stock speculating. The failures in stock speculating
are caused mainl