Studies in Stock Speculation (Volume I & II) Describes Ten Cardinal Principles of Trading and Supplemental Discussions of General Interest to Traders and Investors.
Introductions Volume I:
This Magazine of Wall Street classic still fits today’s investors and traders. “Studies in Stock Speculation” undertakes to tell the reader how one can know what stocks to buy and when to buy them. This does not mean that you are given fixed rules which stop you from thinking. On the contrary, the how to part of investing always requires independent judgment and thinking ability.
The cultivation of judgment is our purpose. The reader who digests the numerous instructive points in these chapters will be better equipped for success. Rules are useless if applied arbitrarily or mechanistically, and are worth very little unless related to the proper psychological moments.
The public has always rarely anticipated increased value while it waits for obvious good news. The good news makes you hungry, and in our managed society where good news is turned out as rapidly as possible, the healthy skepticism of profitable principles, over 40 years fresh, is needed.
In a former era when stock movements were considered deep mysteries by the average man, this work helped to dissipate prevailing ideas of the market as largely, if not solely, a manipulator’s game. This volume brought a realization of the fact that speculation is an art and science, neither too much one or the other, but certainly not a numbers game or an astrological fancy.
The fine points can be learned by those willing to study, Success means adapting Wall Street Knowledge to one’s individual needs and emotional make-up. Read on and learn for yourself, keeping in mind that though times change people remain the same. And it is people who make markets.
Introductions Volume II:
Volume I of “Studies in Stock Speculation” was so well received, and continues in such constant demand by students of the stock market, that we believe this second volume will be appreciated by those who desire to expand their knowledge of trading and investing principles.
Volume II appeals particularly to those who desire to profit by the experiences of others, and who are willing to investigate the science of speculation in an orderly and systematical manner.
Wolf begins with a presentation of the most important factors that govern successful trading in stocks. Ten cardinal rules are given and each one of them is discussed in some detail.
The rules and examples are expanded by observations with the use of illustrations and charts. The average speculator obtains a clearer idea of what he is trying to do while receiving many suggestions as to how he may make the most efficient use of his own experiences.
Though dealing with the stock market of the 1920’s, the rules and examples are helpful today. These words of wisdom cannot be applied arbitrarily or mechanistically but they can be adapted to the present day market environment since people still make the same mistakes.
- Speculation an Art, Not a Game
- How to Profit When Stocks are Being Marked Up
- Ways of Detecting the Turning Points
- Sell Stocks When Support Is Strongest
- Right Method of Accumulating
- A Word to the Amateur
- Short Selling
- Picking the Peak to Sell
- The Laws of Speculation
- Lessons Taught by Speculation
- Trading as a Business
- Trading as a Career
- How to Study the Market
- Wh~re Stop Loss Orders Fail
- How to Operate with a Close Stop
- What It Is and How to Place lt.-“Immediate Order.”
- Why Tips Are a Delusion and a Snare
- What the Beginner Must Know
- Puts, Calls, Spreads and Straddles
- Your Broker, Your Order, and the Specialist
- Long Distance Trading vs. Tape Reading
- Don’ts for the Inexperienced
- When to Go Slowly in Distributing the Risk
- Why Many Traders Lose Money
- The Pyramid Theory
- How Pyramids Must Be Planned and Worked Out Patience: A Virtue That May Be Overworked
- Studying the Volume
- When and How Trend Charts May Be Used
- Trading in a Bear Market
- Trading in a Bull Market
- Making Money in a Trader’s Market
- Ten Cardinal Principles of Trading
- How to Commit Financial Suicide
- Limitation of Losses Essential to Successful Trading
- Why Mathematical Probabilities Favor the Trader Who Follows the Trend
- Why Active Stocks Give Best Trading Results
- Buying After Reactions
- Successful Traders Know When to Sell as Well as When to Buy
- Distributing the Risk
- Don’t Let Your Profits Fade Away
- Avoiding the anger of “Marketitis”
- Knowledge of Fundamental and Technical Conditions Both Essential in Trading
- Marking Down the Original Cost
- Fundamental Factors in Investing
- How to Begin Trading
- Are Charts an Aid to Trading?
- Why the Money Market Should Be Closely Observed by Investors
- Explaining the Stock Market Cycle
- The Importance of Fundr mentals
- Development of Market Perspective 101
- Earnings as a Measurement of Stock Values
- How to Analyze a Balance Sheet
- Developing Investment Discrimination
- What Kind of a Management Has Your Company?
- Are You Getting the Facts?
- On Being Right Too Soon
- Don’t Be a Slave to Charts
- How Charts Deceive
- Distribution, or Letting the Public Get Off Which?
- Don’t Waste Time Wishing You Were In a Live Issue-Why Not Get In?
- The Significance of Hope
- Feeling for the Top
- Study Carefully the Rules of the Game Before
- You Begin to Play
- The Cost of Cupidity or, How Avarice Impairs
- The Trader’s Vision
- Following the Leaders
- Pyramiding Practice vs. Theory