VOObyM

Reminiscences of a Stock Operator
usually apt to be inside buying; and when there is that, the price does not stay down. I
should say that in ninety-nine cases out of a hundred, so-called raids are really legitimate
declines, accelerated at times but not primarily caused by the operations of a
professional trader, however big a line he may be able to swing.
The theory that most of the sudden declines or particular sharp breaks are the results of
some plunger's operations probably was invented as an easy way of supplying reasons to
those speculators who, being nothing but blind gamblers, will believe anything that is
told them rather than do a little thinking. The raid excuse for losses that unfortunate
speculators so often receive from brokers and financial gossipers is really an inverted
tip. The difference lies in this: A bear tip is distinct, positive advice to sell short. But the
inverted tip that is, the explanation that does not explain serves merely to keep you from
wisely selling short. The natural tendency when a stock breaks badly is to sell it. There
is a reason an unknown reason but a good reason; therefore get out. But it is not wise to
get out when the break is the result of a raid by an operator, because the moment he
stops the price must rebound. Inverted tips!
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