Here are three typical commodity market investing deals I concluded in the early part of 1954 - deals which convinced me I was a natural at commodity market investing. In this I have included commissions and taxes.
You will note that each of these commodity market investing transactions netted me just over $400. It was not a large sum, but three profits in a row amounting to $1,333.38 in just a few weeks made me feel that these were smooth, simple operations and I was in control of my commodity market investing.
The feeling that I was operating with a profit in commodity market investing, allied to a natural awe of the place, made me feel foolishly happy. I felt I was losing my Canadian amateur status and becoming a member of an inner circle. I did not realize my method of commodity market investing had not improved - that I was simply using more pompous words to cover it. For instance, I no longer considered the broker's advice as tips, but as "information". As far as I was concerned, I had given up listening to tips and instead was receiving authentic news based on valid economic evidence.
The boat sailed happily along. Here are some of my commodity market investing transactions during April and May, 1954:
Profits, profits, profits. My confidence was at its height. This was clearly not Canada. Here everything I touched turned to gold. By the end of May, my $10,000 had grown to $14,600.
Occasional setbacks did not bother me. I regarded them as slight, inevitable delays in the upward climb towards prosperity. Besides, whenever my commodity market investing was successful I praised myself; when I lost, I blamed it on the broker.
I continued commodity market investing. I telephoned my broker sometimes twenty times a day. If I did not conduct at least one transaction a day I did not feel I was fulfilling my role commodity market investing. If I saw a new commodity I wanted to have it. I reached out for fresh stocks like a child for new toys.
These transactions in which I was involved in Wall Street around July 1954 will show the energy I expended for very small returns:
My net profit on these commodity market investing transactions was $1.89. The only person who was happy was my broker. According to the New York Commodity Exchange rules, his commission on these ten transactions amounted to $236.65. Incidentally, my $1.89 profit did not include the price of my telephone calls.
In spite of this, only one thing really bothered me. Half the words my broker used concerning commodity market investing I did not understand. I did not like to show my ignorance, so I decided to read up on the subject. In addition to the financial columns in the New York daily papers, I began to read books about commodity market investing so I could talk on his level.