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 dose 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 in the result of a raid by an operator, because the moment he stops the price must rebound. Inverted tips! Tips! How people want tips! They crave not only to get them but to give them. There is greed involved, and vanity. It is very amusing at times to watch really intelligent people fish for them. And the tip-giver need not hesitate about the quality, for the tip-seeker is not really after good tips, but after any tip. If it makes good, fine! If it doesn’t, better luck with the next. I am thinking of the average customer of the average commission house. There is a type of promoter or manipulator that believes in tips first, last and all the time. A good flow of tips is considered by him as a sort of sublimated publicity work, the best merchandising dope in the world, for, since tip-seekers and tip-takers are invariably tip-passers, tip broadcasting becomes a sort of endless-chain advertising. The tipster-promoter labours under the delusion that no human being breathes who can resist a tip if properly delivered. He studies the art of handing them out artistically.
[Reminiscences of a stock operator – Edwin LeFevre - 1923]
CVI Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
