Successful Stock Speculation   By: John James Butler (1867-)

By J. J. BUTLER

Written April 1922 Published December 1922

Published by NATIONAL BUREAU OF FINANCIAL INFORMATION 395 Broadway, New York City

This Book Is Not Copyrighted

We believe the principles expounded in this book are of immense value to everyone who buys speculative securities, and we do not object to anyone reproducing any part of it, whether or not we are given credit for it.

National Bureau of Financial Information

Transcriber's Note:

Minor typographical errors have been corrected without note. Variant spellings have been retained. Bold text has been indicated as bold.

CONTENTS

PART 1 INTRODUCTORY CHAPTERS

Chapter Page I. THE PURPOSE OF THIS BOOK 7 II. WHAT IS SPECULATION 9 III. SOME TERMS EXPLAINED 13 IV. A CORRECT BASIS FOR SPECULATING 17

PART 2 WHAT AND WHEN TO BUY AND SELL

V. WHAT STOCKS TO BUY 23 VI. WHAT STOCKS NOT TO BUY 25 VII. WHEN TO BUY STOCKS 29 VIII. WHEN NOT TO BUY STOCKS 33 IX. WHEN TO SELL STOCKS 35

PART 3 INFLUENCES AFFECTING STOCK PRICES

X. MOVEMENTS IN STOCK PRICES 41 XI. MAJOR MOVEMENTS IN PRICES 43 XII. THE MONEY MARKET AND STOCK PRICES 47 XIII. MINOR MOVEMENTS IN PRICES 49 XIV. TECHNICAL CONDITIONS 51 XV. MANIPULATIONS 53

PART 4 TOPICS OF INTEREST TO SPECULATORS

XVI. MARGINAL TRADING 61 XVII. SHORT SELLING 65 XVIII. BUCKET SHOPS 69 XIX. CHOOSING A BROKER 71 XX. PUTS AND CALLS 73 XXI. STOP LOSS ORDERS 75

PART 5 CONCLUDING CHAPTERS

XXII. THE DESIRE TO SPECULATE 81 XXIII. TWO KINDS OF TRADERS 87 XXIV. POSSIBILITIES OF PROFIT 91 XXV. MARKET INFORMATION 95 XXVI. SUCCESSFUL SPECULATION 103

PART ONE

INTRODUCTORY CHAPTERS

CHAPTER I.

THE PURPOSE OF THIS BOOK

This book is written for the purpose of giving our clients some ideas of the fundamental principles that guide us when we select stocks for them to buy, but these principles are valuable to every person who trades in listed stocks or in any other kind of speculative stocks.

First of all, we want you to get a clear conception of the meaning of the word speculation, which is explained in the next chapter. Our purpose is to protect you against losses as well as to enable you to make profits, and it is very important that you understand how to provide for safety in your speculating.

It is a well known fact that there are tremendous losses in stock speculation, but we claim that almost all of these losses would be avoided if all speculators were guided by the principles expounded in this book.

"What" and "When" are two very important words in stock speculation, and we cannot urge upon you too strongly to study carefully Chapters V. to IX.

Chapters X. to XV. tell you much about the influences that affect the prices of stocks, a knowledge of which should also be a guide to you in making your selections.