St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-08-03

back cash reserve sufficient to protect
him against an adverse course of prices.
Ordinarily the man who SpeculateS is of
sanguine temperament and is apt to
take risks without sufficient provision
against contingencies. Hence it is
common for
inexperienced Operators
to use all their available resources in
their original margin. The result is
that. If prices go against them, they
are liable to be closed out and saddled
with a loss they can lily afford. Such
persons should never pledge more than
One-half of their available means at the
beginning of transaction; the remain
ing half should be kept as a guarantee
against their being '.sold out" OF to
enable them to duplicate the transac-
ton at the changed price. so as to make
an average likely to yield profit.
To speculate successfully one should
not always operate in the same direc-
ton. Many men are optimists from a
constitutional bent, and they are 'bulP'
or ''bear" at all times and under all cir
cumStanceS. As rule those that follow
natural disposition, rather than the
course of the market and the conditions
that mold it, are sure to bankrupt them
selves sooner or later. do not mean to
maintain that there is no chance for the
operator who clings continuously to one
side of the market, for in times when
conditions favor higher prices there is
always some profitable work to be done
by the ''bear" in checking excuses OF a
rise; and when events favor decline the
''bulF' may find his chances in intervals
of excessive decline. But the man who
can successfully steer his craft
against the winds and the tides
must be thoroughly trained navlga-
tor, cool in temperament, capable OF
refining his natural proclivities and
above all the possesSor of means large
enough to control, if necessary, the
course Of the market by sheer money
power. 1t is needless to say that nine
tenthS of these conStitutionally Optlmls-
tic or peSSimistic spectators are devoid
of these requisites to success. and such
men seldom remain long in Wall street
speculation. Their pockets are soon
emptied and they retire to reflect on the
folly of refusing to appreciate and to
follow the natural drift of the condi-
lions that regulate values.
But no matter how much we may lay
down line upon line and precept upon
precept; no matter how many wise
laws and modern instances we may
quote: no matter how many rules we
may establish nor how much good adj
vice we may give, very few men will
gain sufficient experience to command
success in
Wall Street
speculations until they fall into the sere
and yellow leaf of age. When that time
arrives the old speculative veterans al
low themselves long intervals of repose
at their comfortable homes, and in times
of panic, which recur sometimes oft
ener than once year, the old veterans
will be seen in Wall street, hobbling
down on their canes TO their brokers'
Offices.
Then they always buy good stock to
the extent of their bank balances, which
have been permitted to accumulate fol-
| just such an emergency. The panic
usually RACES until they have pur-
chased. for cash, sufficient stock to af-
| ford big rake in" When the panic
has spent its force these old fellows
quickly realize, deposit their profits
| with their bankers, or the Overplus
| thereof, after purchasing for permanent
| investment more real estate that is on
the upgrade. and retire for another
| season to the Quietude of their splendid
homes.
If young men had only the patience
to watch the speculative signs of the
times as manifested by the periodical
egress of these old prophetic spectators
| from their shells of security they would
make more money than by following up
the slippery tips of the professional
pointers of the stock exchange all the
| year round, and they would feel nc
necessity for hanging at the coat tails
of those who pretend to be deep in the
counsels of the big operators. say tc
the young spectators, therefore, watch
the ominous visits to the street of these
old men. They are as certain to be
seen on the eve of a panic as spiders
creeping stealthily and noiselessly from
their cobwebs just before rain. If you
only wait 10 see them purchase. ard
then put fair margin for yourselves
keep out of the "bucket shops" as we'll
as the sample rooms" and only visit
Delmonico's for light lunch in business
hours, you can hardly fail to realize
handsome profits on your ventures.