Today's Quote: “Fear is not a good teacher. The lessons of fear are quickly forgotten.” Mary Catherine Bateson

There are several good books out there about trading that should be on every trader’s must read list. If you were forced to choose one and only one, the only possible pick would be “Tools and Tactics for the Master Day Trader”. We are going to run a series of excerpts from the best selling book for the next series of lessons. Now in the words of the master trader himself, Oliver L. Velez…

A GLIMPSE AT HOW THE MARKET REALLY WORKS (Continued…)

The last of the hangers-on crash to the ground, broken and maimed to no end. At this point, a new group of onlookers emerge from the nearby woods. They are clean and serene. Each movement they make is deliberate and powerfully energetic, for they did not take part in the tragedy that just transpired. Or did they? A few of the dejected souls lying on the ground take a closer look, a look that reveals something very interesting. This seemingly new group is not new at all. It is the same group that was seen quietly exiting the party before it came to its violent end. An even closer examination by a few more beaten-down onlookers reveals something even more stunning. This group not only exited the party early, they were the originators of it! “My God,” someone exclaims. Paralyzed, and unable to move freely, all these dejected souls can do is watch, as the masters of the game go to work, again. No sooner does the bandwagon’s wheels hit the ground than this professional platoon bolts for the wagon. In a flash they are on board. Easy. The bandwagon, now free of the larger crowd, can move forward freely and gracefully, comfortably carrying the more astute group with it. Its pace quickens, and before long a smooth elegant stride is in place.

After a few miles of uninterrupted movement, someone from this masterful group flips on a switch, and suddenly the loud sounds of entertaining music start again. Someone yells, “OK everyone. Here they come. Let’s do it again.” Within moments, those who were the former victims of the backward crash become interested again. The music almost calling them from the grave. And once more, the never-ending cycle repeats.

The analogy you just read is worth many more times the price of this book, if you grasp all that it contains, if you truly hear its message and lay hold to the hidden wisdom embedded in its metaphors, you will find yourself laying claim to a higher level of understanding and mastery. With each read, you will discover a deeper insight into the inner workings of the market and how the financial sages of Wall Street manipulate it for profit. As we’ve stated earlier, the purpose of this book is to help you make the all-important transfer from the larger group of novices to that much smaller group, the invitations for which are very few. if you don’t make the transfer, you will be nothing more than one of the many play toys for those who have. And when you can no longer entertain the gods with your willingness to play the game, they will send you on your way, broke, dejected, and depressed. Don’t let this happen to you. The answers you seek are within the pages of this book. In fact, a very big clue to the whole game we call trading is contained in the bandwagon theory just explained. Why not read it again, right now? Your future may just depend on it.