Most good stories start with a fundamental list of ingredients: the initial situation, conflict, complication, climax, suspense, denouement, and conclusion. Great writers sometimes shake up the recipe and add some spice.
Initial Situation
Living in a Material World
Stage Identification: Paul's family appears moderately well off, but they're still struggling to maintain their lifestyle.
Explanation/Discussion: The disparity between Paul's family's luxurious tastes and their actual income sets the whole story in motion.
Conflict
Luck be a Lady?
Stage Identification: Hester tells Paul that neither she nor his father have luck.
Explanation/Discussion: Paul internalizes his parents' dissatisfaction with their finances, and becomes determined to be lucky.
Complication
Off to the Races
Stage Identification: Uncle Oscar discovers that Paul has been making money betting on racehorses with the help of the family's gardener.
Explanation/Discussion: Uncle Oscar has mixed feelings about Paul's gambling. On one level, he knows that exploiting his young nephew for gambling tips is wrong, but his greed overrides any moral hang-ups.
Climax
Gimme Gimme Gimme
Stage Identification: Paul gives five thousand pounds to his mother as an anonymous gift.
Explanation/Discussion: This gift ought to be the happy ending, the resolution of the conflict: The parents are unlucky and poor, so the lucky and wealthy son gives them as much money as they could want. Unfortunately, this story doesn't have a happy ending. Paul's gift only seems to make them want even more money.
Suspense
Woah, Nelly
Stage Identification: Paul vigorously rides his rocking horse in an effort to earn even more money at the next big race.
Explanation/Discussion: Paul's last chance to make some big money is the Derby race, and he begins to ride his rocking horse with furious energy.
Denouement
Don't Rock the Horse, Baby
Stage Identification: After riding his rocking horse, Paul collapses from brain fever—but not before giving away his final racing tip.
Explanation/Discussion: Paul successfully identifies the winning horse, but he collapses from the strain and dies—sort of like a give and take. Paul's 'luck' got the better of him.
Conclusion
Too Bad, So Sad
Stage Identification: Uncle Oscar comforts his sister Hester on Paul's death and tells her that even though Paul might be dead, at least she's eighty thousand pounds richer.
Explanation/Discussion: Uncle Oscar seems to pity the fact that Paul lost his life like he did, but his comment seems callous, reflecting his general greed.