The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1893-05-07

X WI n 1aying down most Of
unsa isfactory
teachers. They can't answer ques-
lions, and no one can learn much about
anything without asking questions,
whether from persons or from facts, or
both. But one must study any subject
In the light of the most available and
httainable means.
The stock market is a most fruitful
and fascinating field of study. It fas-
cinates more influential well-to-do
and able-bodied men to-day than any
ether fact in American life. Horse
racing, theatricals, fashion, the fine
arts, in such a competition are, dis
tanced TO such an extent that they are
out of sight, in the rear. And of
course a great deal of study is be-
slowed upon it. And the reasons why
the results of so much study are not al
ways commensura te with the labor
and time employed are numerous.
Some of them are substantially as fol-
lows:
People have preconceived notions.
They are not willing to clear their
minds of existing theories and bring
themselves down to close dealing with
facts.
They are apt to base their conclu-
sions on the opinions of Others Now,
opinions as to the value of anything
are sure to differ, and opinions as to
future values differ still more widely,
just as the spol1es of a wheel are wider
apart all the time while you travel
away from the hub. When you reach
out into the future You are getting
away from the hub of the present
They are frequently unwilling to
act on conclusions that conflict with
their desires and interests, and that
involve the acceptance of immediate
losses. They resemble the wounded
man who refuses to let the surgeon
out off his leg when he is told that am
putation will probably save his life and
that there is slender chance of other
wise saving it, and who takes the
slender chance.
They are apt to study in superficial
manner, without thoroughness, using
scraps and smatterings OF knowledge
when even the most exact information
is hardly sufficient.
Other reasons could be adduced; but
they might be needless. The king ex-
cused municipality of town who
neglected to fire a salute in his honor
on their giving him the first one of
fifty good reasons-that they had no
powder. The other fortv-Dine were suf-
fered TO remain undivulged. Enough
reasons have been addueed here to e1-
plain why so many people fail to sue
cessfully study the stock market.
But while it is very easy TO pick to
pieces the various systems that are sure
to win on the stock exchange, and to
criticise the modes of study of preiu-
diced and slovenlv students, it is also
most difficult to lay down absolute rules
for the successful study of the share
market. One double-headcd and in
variable rule there is. but it requires
large capital and patience to practise
it. 1t is this: Buy only what you can
pay for: buy when cheap and sell when
dear. The veriest financial infants
can see the force of this rule.
And yet this precept has its weak
points. For instance, how is person
TO be absolutely certain that given
stock is cheap or dear at given time?
BY comparison? But if he compares
the price with what it was at any past
period, he must also be able to state
all the facts that existed at that period
having any bearing on this stock. and
since these facts may run into the mil
lions as to number, and into all parts
of the country as to place, our learner
has heavy contract on hand. Then.
too, he must bring to bear clear
Judgment, and resolution such as
soldiers exercise when they charge
batteries. and then he must be pre-
pared next day to find out that he was
wrong. After careful and exhaustive
search into all the material at hand. he
buys shares at. say. GO per cent of par,
as being cheap a the price, and really
worth more money, and next day they
NAV be offered at 50. lie then has
really lost $40 on each share, and if
he holds the purchase, and ii ultimately
amounts to par he has still lost $40 per
share.
And suppose he sells on any given
day at par. and a week after that the I
shares sell at ITO, he then loses another
$40 per share. SO that this safe road 10
success has its stumbling blocks as well
Us others, although they are not SO
dangerous In such road there are no
deadly dangerous pitfalls The men
who travel II are not tempted to de- .
falcations and suicides.
Horace Greeley once said that the way
20 resume specie payments was to re- /
sumo: and ii might also be said that the
way TO study the stock market is 10 /
study it. One distinguished and gcner-
ally successful stock operator of the
period is credited with being in daily /
receipt OF numerous pieces OF infoTlna-
ton from various parts OF the country
as to the condition of crops, weather.
freights. passenger traffic, in short, all .
facts that go to make up the status % /
railroad enterprises. These private
bits of information are not open 70 the /
general public. they cost too muck, and /
call for too much machinery; but the
bureaus OF public information are con
tlnually sending out Intelligence. and