Speculator's psychology

On the theory that a good speculation is undoubtedly superior to a poor investment. But here again we mush recognize that the psychology of the speculator militates strongly against his success. For, by relation of cause and effect, he is most optimistic when prices are highest and most despondent when they are at bottom. Hence, in the nature of things, only the exceptional speculator can prove consistently successful, and no one has a logical right to believe that he will succeed where most of his companions must fail. For this reason, training in speculation, however intelligent and thorough, is likely to prove a misfortune to the individual, since it may lead him into market activities which, starting in most cases with small successes, almost invariably end in major disaster.