14. Qualities necessary for success.—The task of the speculator is difficult and many pitfalls beset his path. To accomplish it with a fair degree of success requires special qualifications and traits of mind. Mr. Woodlock has summarized the desirable qualities of the successful speculator as follows: First: The speculator must have a clear idea of what he is trying to do, i.e., he must have some clear notion of what he expects the market to do and how he expects to operate so as to profit thereby. This implies original knowledge of stock values, money values, and speculative market condi tions.
Second: The more moderate his operations in proportion to his capital, the greater his prospect of ultimate success.
Third: He must have the strength of mind to resist the temptation of cupidity, and the patience to wait until the chances favor him, sacrificing many apparent opportunities for the sake of safety.
Fourth: He must be more vigilant as to his losses than as to his profits, and inexorable in accepting a loss whenever he is in serious doubt as to his position, never allowing a large loss to accumulate.
With such disposition, with continual application of mind and careful study of financial winds and waves, and with abundant capital, speculation can be scientifically carried on as a profession. But it is a most difficult profession to learn
—and not an easy way of making money.
It might be added that the speculator must be cool under excitement and often oblivious to all manner of verbal and printed advice. If he has other affairs to look after, he had better keep away from Wall Street. To be successful in this hazardous and thrilling oc cupation requires, what can be described in no other way, cool nerve. Otherwise a sanitarium will be the only outcome. It is perhaps a characteristic of many Wall Street men to be nervous and excited over trivial affairs, but to receive the news of great pecuniary losses and gains with the impassive calm of the pro verbial Indian. That is the temperament needed by the market operator.
Special fitness in both character and knowledge is essential to speculative success. The fact that count less persons, many of them well satisfied with their previous achievements along wholly different lines, have failed in speculation only proves the contention.