I Hope The Political Upheaval Never Happens Again

By Patrick Hanna

I will explain to you immediately. After returning to New York for a few years, I racked my brain trying to explain exactly why I couldn't win at the New York stock exchange, in a game I'd once won in the past. was a fifteen-year-old kid at illegal brokerage firms in Boston. I know one day I will realize where I went wrong and I will stop making

• Language: English
• Publisher: Patrick Hanna
• Release date: Oct 3, 2023
• ISBN: 9798868952852

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I Hope The Political Upheaval Never Happens Again

I Hope The Political Upheaval Never Happens Again

Copyright © 2023 by Patrick Hanna

All rights reserved

TABLE OF CONTENTS

CHAPTER 1 : THAT WAS THE MOST MEMORABLE DAY IN MY LIFE AS A STOCK SPECULATOR.

CHAPTER 2 : A COMPLETELY UNPROFITABLE PROJECT.

CHAPTER 3 : HOW DOES THE MARKET WORK?

CHAPTER 4 : MARKET PREDICTION

CHAPTER 5 : BUT THERE ARE THOSE WHO DO NOT

CHAPTER 1 : THAT WAS THE MOST MEMORABLE DAY IN MY LIFE AS A STOCK SPECULATOR.

That was the day my profit exceeded one million dollars. It marked a happy ending to my first carefully planned business campaign. Everything I predicted has come to pass. But most of all: my crazy dream has come true. I became king for a day!

I will explain to you immediately. After returning to New York for a few years, I racked my brain trying to explain exactly why I couldn't win at the New York stock exchange, in a game I'd once won in the past. was a fifteen-year-old kid at illegal brokerage firms in Boston. I know one day I will realize where I went wrong and I will stop making mistakes. And then I will not only have the will to make the right decision, but will also have enough knowledge to ensure I do so. And it also means I will have power.

Please don't misunderstand me. It was not a calculated dream of power, nor a frivolous desire born of arrogance. It was like the feeling that the same stock market that had failed me at the Fullerton and Harding offices would one day serve me. I had a feeling that day would come. And it actually came – October 24, 1907.

The reason I said I was king for a day was: that morning, a broker of mine, knowing that I had been conducting bearish speculation, drove to the company of one of the partners. of a leading Wall Street bank. My friend told that banker that I was trading in large quantities and that I must bet all my luck. What good is good judgment if I cannot profit from it to the fullest?

Perhaps the broker was exaggerating to make his story sound important. I probably have more supporters than I know. Maybe that bank boss knew better than me how serious the situation was at that time. In any case, the guy said to me, He listened attentively when I told him what you said about what the market would do when the selling of stocks actually started, just after a day or two. stimulation again. When I finished speaking, he told me that there was something he wanted to ask me to do that day.

I made a huge paper profit. And all I needed to do to make the price drop even more was place sell orders, ten thousand shares each of Union Pacific and a half-dozen other high-dividend stocks and the market would be hell after that. . I see that, with the strength and characteristics of this precipitated crisis, the Government was thinking of closing the exchange, as it did in August 1914, when World War I broke out. go out.

That means a huge increase in paper profits. But it also means it's impossible to convert these paper profits into cash. But I also had to consider many other issues, one of which was that if there was another sharp devaluation, it would hinder the price recovery that I had planned to compensate for the bloodshed. " like just now. Such a crisis would cause great damage to the whole country.

I decided that it was not wise to continue to speculate on the downside, and that if I remained short it would be unreasonable. So I changed back and started buying.

Not long after my broker started buying – and, by the way, I was buying at the lowest price – the banker invited my friend over.

I invited you here, said the banker, because I want you to go see your friend Livingston at once and tell him that we hope he will not sell any more shares for free in today. The market cannot take any more pressure. Just with the current situation alone, preventing a serious crisis is an extremely difficult task. Let's appeal to his patriotism. This is a case where one person needs to act for the benefit of all. Tell me immediately what he says.

My friend came right away and told me about it. He was very skillful. I think he thought that if I had planned to make the market bearish, his offer would amount to me passing up an opportunity to make the equivalent of ten million dollars. He knew I was angry at the way some of the big guys were trying to push huge amounts of stock into the hands of the public when they knew as well as I did what was going to happen.

The reality is, the big guys are also the ones who suffered big losses and among the stocks I bought at the lowest prices were reputable stocks. I didn't know it at the time, but that wasn't the problem. I've bought back all of the shorted shares and it looks like I have an opportunity to buy stocks cheap and at the same time help fuel a much-needed price recovery - if no one deals another blow to the market.

So I said to my friend, Go back and tell Mr. Blank that I agree with them and that I was fully aware of the seriousness of the situation before he even called you. I won't sell any more shares today, but I will go public and buy as much as I can. And I kept my word. That day, I bought one hundred thousand shares, using my bullish account. I didn't short any more stocks for the next nine months.

That's why I still tell my friends that my dream came true and I became king for a while. There was a time that day when the survival of the stock market was left to those who intended to influence it. I don't suffer from illusions of power; In fact, you must know how I felt when I was accused of conspiring to depress market prices and the way my activities were exaggerated by Wall Street rumors.

… The press said that Larry Livingston, The Young Reckless Speculator, had made several million dollars. In fact, after that transaction, I made over a million. But my greatest victory was not in dollars but in intangibles: I learned what one must do to earn large sums of money; I have escaped forever from the class of gamblers; I finally learned how to trade smartly with large amounts. That was my glorious day.

Part. ten

Recognizing our own mistakes brings us no less benefit than studying our successes. But everyone tends to avoid punishments for their mistakes. When you make mistakes that lead to failure at work, you never want to go through them again. And of course, mistakes in the stock market will hurt you in both sensitive areas: your wallet and your self-esteem. But I will tell you something very strange: a stock speculator sometimes makes mistakes and he knows he is making mistakes. After making mistakes, he often wonders why he made those mistakes. Then after a long period of objective thinking, when the pain of punishment has passed, he can understand how he made such mistakes, but cannot understand why. After that, he just beat himself up and stopped at that.

Of course, if a person is both smart and lucky, he will not make the same mistake twice. But he will make one of the thousands of brothers of the first mistake. The family of mistakes is so large that there is always a member of that family with you when you want to learn from that first mistake.

For the first of my million-dollar mistakes, I have to go back to when I first became a millionaire, just after the great price fluctuation of October, 1907. With the growth of my business, having a million dollars on hand just means being more conservative. Money does not make a trader feel more comfortable. Because whether rich or poor, he can still make mistakes, and that is never a pleasant thing. When a millionaire makes the right decisions, money is just one of his servants. Losing is the least of my problems. I never mind when I lose money. I will forget them immediately. But it was my mistakes, not my losses, that hurt my wallet and my mind. Remember Dickson G. Watt's story about a friend who felt so worried that a friend asked him what was wrong.

He replied: I can't sleep.

What's wrong?, the friend asked again.

I invested in so many fabrics that I couldn't sleep just thinking about them. They are exhausting me. What do I have to do now?

The friend suggested, Then sell them off until you feel like you can sleep.

According to common sense, a person will quickly adapt to the current situation to the point where he cannot see further. He didn't clearly feel the difference – that is, he had completely forgotten what it was like to be a non-millionaire. He just remembers that he can now do things that he couldn't do before. For an ordinary young person, forgetting the habits of a poor person does not take much time. But it will take a long time to forget you were once rich. I think it's because money helps create needs or multiply them. I mean, if a person makes money from the stock market, he will quickly lose the habit of saving. But when he goes bankrupt, it will take him a lot of time to forget his spending habits.

After I had covered my shorts and continued to speculate in October 1907, I decided to rest for a while. I bought a yacht and planned to travel to the southern seas. I'm very passionate about fishing and I want to enjoy life. I look forward to the trip and am ready to leave any day. But then I couldn't go. The market didn't let me go.

I always trade in commodity markets as well as stocks. I started my career as a young man working for an illegal brokerage firm. I have studied those markets for many years, though maybe not as thoroughly as with the stock market. The truth is, I'd rather trade commodities than stocks. There is no doubt that they are more legitimate, obviously. And commodity trading is more of a commercial business than securities. He can solve commercial problems the way he can. He can use imaginary arguments for or against a certain movement in the commodity market. Even if the success of these actions is only temporary, in the end, the truth always wins. Thanks to this, traders profit from research and observation, as in ordinary business. He can observe and weigh conditions and he knows the craft as well as anyone else. He need not be wary of internal factions. In the cotton, wheat or corn markets, returns will not suddenly increase or disappear overnight. In the long run/with time, commodity prices will be controlled by only one type of law - the law of supply and demand. The business of a trader in the commodity market is just to find out the truth about supply and demand, present and future. He cannot allow himself to make predictions about dozens of things like the stock market. That job has always appealed to me – commodity trading.

Of course, in all speculative markets the same things happen. The message from the message board is always the same. Opportunities are equally distributed to those who put in the effort to think. If he asks himself the questions and considers the conditions, he will find the answer therein. But no one bothers to ask questions, they just try to find answers. Americans are always suspicious, everywhere and at all times, unless they go to brokerage offices and look at bulletin boards, whether they trade commodities or stocks. The great game of all games that requires careful study before starting is the one into which he enters without the usual doubts, preparations, and precautions. He's willing to risk half his fortune in the stock market with far less consideration than when choosing an average-priced car.

Reading bulletin boards is actually not as difficult as people think. Of course, you also need experience. But there's something more important: you need to remember some basic rules. Reading message boards is not about learning about your fortune. The bulletin board cannot tell you how much you can get at 1:35 p.m. next Thursday. The purpose of reading the bulletin board is to make sure, first of all, the method of trading, and then the time when to trade. At that time, is it better to buy or sell? This is true for the stock market as well as the