Why You Win or Lose: The Psychology of Speculation

The man who buys a stock solely because of its seemingly bargain price is like a farmer with a thermometer but no almanac who thinks a hot day in autumn must be time to plant spring crops.

A comely young woman was talking, evidently to a man friend who was her mentor in market transactions. “But if it’s only good for nine points,” I heard her say, “maybe I’d better buy something else. You see I must have twenty-five points to give me the money I need before I go away.

Speculation can be worth while only when a few are taking advantage of the stupidity of the many.6