Los Angeles herald., 1905-05-07
GliddOn'S
Market Letter
M AY 9TH, 1905


Making Money and Losing Money Stock Exchanges"
An honestly and competently conducted mining ex-
in trading in mining Stocks but exchange of the
other type in which, far the outsiders are con-
the cards marked and the dice are loaded and
the idiots who sit in the game simply and stupdy letting
the tin horns rob them of their money ,o
It is too early in the history of these newly established
exchanges TO- tell which they will belong to- however,
hope they will not be to the old oil exchange Tor
that seemed to to be little better than an incorporated
chute through which certain insiders unIoaded promoters
stock at high figures the Public not being lambs in this case
but rather ackasse and mules whose chief function was TO
carry away loads ofgod bricks M
One of the methods frequently adopted to gull the public
is wash sales and noticed in evening paper that some
one connected with Exchange No alleged to nave stateo
that that exchange certified checks would be used in set
Elements, prevent wash sales fairy tale like that
looks good to the unntated but not to anyone who knows
the ropes for the soapsud fly just lively rate and
quite pentifuy when certified checks are used as when
If brokers agree wash stocks the cerfcaion Of
checks not in their for in the absence OF clearing
house settlements made by payments of balances due
So if Mr.. Wringer sells g. e. washes) 10000 shares Of
Skin Quick Gold Mining Companys stock at ten (o)
cents share to Mr. Clothes Line and then Mr. Clothes
Line sells G washes) $4,000 shares at eleven G1 cents
to Mr. Wrnger will be found when trades are balanced
that Clothes Line Wrnger $1,000 and Wringer owes
Clothes Line oo that certified check OF $50 settles the
cia records that the stock was in great demand and ad
vanced share during the CALL and probably the
public buys the stock at the advanced price, thus en-
abling the aundrymen to make money by running Was
house
appreciate lust as much as anyone the difficulty in
preventing any exchange but it is evidence
Of dense ignorance of such matters to pretend that bylaw
requiring the cer6caon of checks will prevent wash sales
1t won't
Another trick that is often worked to gull Il the Pube
is the grandstand play of bidding for huge blocks certain
stock at price above the market price The fake was
worked several times in the oil boom when brokers made
bids for or shares at say above the
market we'll knowing that could possibly deliver such
block all the big blocks had been securely locked up
or hut ony for the Whole ot and the Public that
wise" such matters, looked on amazed and al
docit1 1oft brO1er
that there tremendous demand for the stock at ad
vancng figures and bought the little lots that were
being neatly unloaded by the insiders.
Then there is another little trap that is likely to be
It is the old rusty one about tn the 49, % synd
prices much in advance OF the market
Usually the mythical syndicate is out of townin some
more or distant city, and you given hunch to
the stock that you sell later on to the syndicate
The hint given you Of course in the st str,etest conn
the hint gver won't feel offended all In fact he hopes
you will consider good thing and push it along
Watch for that trap. 1t has teeth
have offered these suggestions merely as hint OF some
of the ways that money lost by traders on any exchange
True these only few and in some other letters
shall mention of the class But before leaving this
subject let add Just more hint 1t is this: Unless you
have absolutely positive inside information don't sell snort
Now, to how money can be made
First never on any account buy stocks margins Only
buy what you can pay TOR & outright MA Margin aos gam
Buy mining shares their merits not on the hot air talk
of boomer Scrutnize the men who manage the com
panv Insist on knowing something about their record Be
that the promoters men who stay by their companies
to see YOUR finish and then to other town.
And, generally speaking when trading on an exchange
take moderate profits Huge advances without frequent
breaks are very rare You will occasionally miss it by
adopting this rule nevertheless you will find it safe to
go by
best to buy cheap stocks rather than those selling at higher
figures. , -. ,
booms and also the oil boom and other such exctements
It Invariably occurred that when the supply of companies and
stocks became large softenng the price of the
higher priced shares because those who held them had
usually bought them low figures and sold them out at large
profits SO enable them buy the cheap shares hop
ing to repeat their very profitable experience.
And then trading exchange usually done for the
purpose of making quick turns rather than for investment
Chere are exceptions this rule but the ory of
change traders investors So that good cheap
share suits the purpose better than high priced one
five (5) cent will easily be advanced (o)
cents than fifty (5o) share be advanced to ST. In
each case the money doubled but the are all in
favor of the i1tle nickel coming home a dime.