The psychology of speculation

The author examines psychological and social forces that drive stock market speculation, arguing that personal impulses, sentiment, and panic often override rational principles. He surveys the distracting power of continuous price quotations, the unsettling effects of sudden gains and losses, and the lure of gambling-like frenzies, bogus securities, pyramiding, and over-acquisitiveness. Drawing on anecdotes and practical observations, chapters offer warnings about common misjudgments, the limits of technical rules, and the ways market mood can defeat sound plans, concluding that disciplined self-knowledge and experience are essential safeguards against speculative ruin.