Make no mistake about it my friends. We are at the doorstep of a brand new era. If we had to give this era a name, we'd call it the era of self-empowerment, and the revolution that marked the dawn of this era is only in its infancy. A 20-year decline in commission rates, coupled with new order-handling rules, the Internet, and phenomenal technological advancements have helped level the playing field and open the hidden door to Wall Street forever. The old guarded ways, designed to keep the public from true access, are crumbling as we speak, the age-old profit centers once hidden are now being exposed, and a more sophisticated investor is demanding that it stay that way. Never before in history has the complete democratization of Wall Street been so near. And never before has so much opportunity been available to the average individual on Main Street. In the next few years, that opportunity will be even greater. Our question to you is, "Are you ready?"
We see a day, not too far in the future, when there will no longer be fragmented exchanges in America. The stage is being set right now for one giant, unified U.S. Stock Exchange. Shortly after that, we see a day when there will be one world-wide stock exchange, bringing true capitalism in its purest form to all four corners of the earth.
Shortly after that, or even before that, the day will come when every single computer sold on the planet will come with a preloaded trading platform that provides direct access to this world-wide market, giving individuals the ability to trade anything on earth that moves: stocks, bonds, options, futures, rocks, trees, in-laws. Well, may be not in-laws, but once again, we have to ask, "are you ready?"
The stage is being set for an incredible drama that will most definitely be played out over the next 5 to 10 years, and those who get prepared today, those who get trained and educated now, stand a good chance of becoming the new titans of the new game on Wall Street.
This is a new day, and those who don't like it had better get used to it because self-empowered traders are here to stay.
WHAT HAS BROUGHT ABOUT THIS NEW REVOLUTION?
Several significant developments have occurred over the past 10 years to ignite what is, in my opinion, a phenomenal revolution that is only in its infancy:
1.
The precipitous drop in commission rates during the last decade has increased the potential profitability as well as the plausibility of short-term trading. Prior to this drop, only institutions and high-net-worth individuals enjoyed bargain-basement commission rates. Today, access to our equity market can be had for pennies.
2.
A world-wide collapse in interest rates has made equity ownership participation an absolute must. This change, along with a runaway Bull attitude, lead to a higher level of sophistication and an increasing need for self-empowerment.
3.
Mind-boggling technological advancements have helped to bring Wall Street to Main Street. As a result, big and small, rich and poor, novice and pros alike can, with the click of a mouse, directly access the largest markets in the world, right from the comfort of their very own living rooms. These technological marvels have helped level the playing field for the individual. They have removed the barriers to access and, in so doing, have removed much of the unfair advantage enjoyed by the elite members of "the club."
4.
New order-handling rules have changed the way Wall Street works forever. Not only have recent changes in the way firms handle our orders provided for greater fairness and transparency, they have helped the user in the vehicle that will ultimately change the way the financial world does business: the ECN, better known as the Electronic Communication Network.
5.
Last, but far from least, is the advent of the Internet. Not since Alexander Graham Bell's telephone has something caused such a radical change in the way we think and live our lives. Today, the information gap between source and recipient has been reduced to near zero. Because of the Internet, we have truly become a global society. A local consumer is now a global consumer. A sixth-grade student on Sycamore Drive in North Carolina is now a student of the world, and a business that once dominated its niche in the northeastern part of the United States can work to expand its niche to the world. The Internet will drive the way we think, walk, talk, live, and love in the next millennium, and those who do not embrace the changes it brings will become a part of prehistoric history in years to come.
WHAT IS PROPER TRADING?
Proper trading, in many respects, is a by-product of proper "thinking." One of the first things this book will do is create a revolution in your mind. It will change the way you see and think about the markets. For instance, one of the first lessons we teach is that "you do not trade stocks, you trade people." Far too many novice market players fail to realize that there is someone on the other side of every single trade they make. Each time you buy, someone is on the other side of the transaction selling the stock to you. Each time you sell, someone is on the other side buying the stock from you. The 64K question is, "who's smarter?" Is it you, or is it the person or entity on the other side of your trade? This book will make sure you are the smart one, by training you in the fine art of playing people.
We will show you that successful trading calls for the ability to find two sets of ill-formed individuals: those willing to give up their merchandise too you too inexpensively and those willing to buy your merchandise too expensively.
In other words, and I hope I don't sound too brash here, successful trading is the art of finding an idiot. This book will make sure you are not the idiot.
We believe that day trading is far broader in its scope than most people realize. Unfortunately, many individuals, in and out of the industry, have erroneously defined day trading as a frenzied, rapid-fire buy- and-sell approach that never calls for taking the position home over night. While that is a form of day trading, it is not the only form.
It is our view that if you are committed to your trades on a day-to-day basis and if you are applying attention and focus to the markets daily, you are, by definition, a day trader. On the other hand, it you practice what we call the Rip Van Winkle approach to the market, which is buying a stock, taking a nap for 5 years, and hoping everything is OK when you wake up, then you are not a day trader.
It is very important to understand that day trading is not investing. In many respects, the two activities are diametrically opposed to each other.
WHAT DOES THIS BOOK SET OUT TO ACCOMPLISH? WHAT WILL I GET FROM IT?
This book is designed to help active self-directed traders gain the knowledge and acquire the tools necessary to approach the markets with intelligence and a well-thought out trading plan. In other words, it will help you know what to do, but that is not where it ends, because knowing "what" to do is no guarantee that you'll do it. Because 85 percent of the trading game is psychological in nature, we also help traders deal with some of the psychological and emotional challenges that every active market participant must face.
WHAT METHOD DO YOU USE TO PICK YOUR STOCKS?
Our approach is a technical one. It is based on a number of very reliable chart patterns that represent key short-term shifts in market psychology. There are certain chart patterns that pinpoint when a change in the balance of power between the buyers and sellers have occurred. We will teach you not only how to identify these chart patterns, but also help you to build tactics and strategies that are designed to profitably exploit them.
Charts are the footprints of money. And let me tell you something, they don't lie. They are like a doctor's x-ray, which provides deeper insight into his patient. In the trader's case, the market is his patient.
For instance, we have found that stocks experiencing a great degree of momentum tend to correct (or rest) for 3 to 5 days before they resume their upward moves. This 3- to 5-day decline typically sets up a unique opportunity for the educated swing trader. We teach, through this book and a variety of services, when the trader should strike, where the traders should place his protective stop, and what the trader should look for in the trade.
