File:Wall Street guide - (1902) (14597946527).jpg

Identifier: wallstreetguide00jlmc (find matches)
Title: Wall Street guide /
Year: 1902 (1900s)
Authors: J.L. McLean & Co.
Subjects: Stock exchanges
Publisher: New York: J.L. McLean
Contributing Library: Columbia University Libraries
Digitizing Sponsor: The Durst Organization

View Book Page: Book Viewer
About This Book: Catalog Entry
View All Images: All Images From Book
Click here to view book online to see this illustration in context in a browseable online version of this book.

Text Appearing Before Image:
en in the market. TRADING ON A SCALE. Then there is still another kind of order, used bythe man who desires to buy on a scale. For in-stance, let us assume that your margin is $1,000, andyou wish to buy 100 shares of Atchison preferred on a scale down. Your order should read Buyfor my account and risk 10 shares of Atch. pfd. at93 and buy 10 more at 92—91—90—89—88—87—BO-SS—84. Open order. The market declines, we willsay, to 84, and, therefore, at each of the quotationsnamed 10 shares of Atch. pfd. have been bought foryour account, so that you are now carrying a total of100 shares, and the average price of this stock is 88^.If the price should decline to 781/£, your margins willbe exhausted, for that would represent an averageloss on your holdings of $10 per share, or $1,000 on100 shares. On the other hand, suppose you sold 10 shares ateach of the quotations named. Then, with themarket at 78^, you could, if you wished, buy 100shares at that price to cover your shorts, and
Text Appearing After Image:
WALL STREET GUIDE. 17 you would net a profit on the combined transactionof $1,000. In giving scale orders do not say buy on ascale down every point, but state the specific figuresat which you wish purchases or sales (as the casemay be) executed. Then nothing is left in doubt asto your exact meaning. At all times remember that your broker, if he isa good broker, is a very busy man. Therefore stateyour desires explicitly, so that they may be com-prehended at a glance. QUALITIES NECESSARY TO SUCCESS. Wall Street is a centre of brains. From the stand-point of brains it is an illustration of the survivalof the fittest. If you would succeed in stock marketoperations you must have the ability to think foryourself; you must be able to listen to the views ofothers without being unduly influenced. You musthave the nerve to admit your mistake when yousee you have made an error, and get out of a badtrade before the loss has amounted to serious propor-tions. To make a success of this business )Tou

Note About Images