Lesson 2: A world where time has a different meaning.

I first began trading the stock market back in 1965. I was 23 years old and a graduate of The George Washington University in Washington D.C. I was in the nation's capital when President Kennedy was shot and well do I remember his funeral, the crowds of people who came to Washington during that time, and the saddness of the event. My parents always remembered where they were when they heard of the news of President Roosevelt's death. I remember where I was when I learned about Dallas and the shots from the School Book Depository. I was in the basement of my Foggy Bottom apartment doing my laundry. A stranger came up to me and asked if I had heard that President Kennedy had been shot. As long as I live, I won't ever forget that moment.

By April of 1967, I considered myself an experienced stock market investor and I decided to try my hand in futures contracts. Not that I knew a lot about futures in April of 1967, I didn't. But if not knowing a lot about a topic kept people from acting, the world would be a much less interesting place than it is. I walked into a brokerage office and decided to give the futures market a serious try. I opened an account and deposited $5,000.00 into it. "Live and learn" is a well known expression and "live and learn" is what I was about to do.

Lesson Number 2. The world of futures and options trading is a world where time has a different meaning. A world where long term is often viewed as a matter of weeks or sometimes months, but never as years. It is a world where those who are on the right side of a price move can make a lot of money in a very short period of time.

Think of it this way. Suppose you were about to set forth on a trip down an Imaginary River. You are all alone, or maybe your best friend or spouse is with you on your journey. You have no idea what is around the next bend in your Imaginary River, let alone what is around the bend three miles away. Suppose, before you left the dock or traveled too far along the waterways you were given the opportunity to talk to someone who has been sailing on this Imaginary River for the past 32 years. Wouldn't you like to have some private time with that river traveler in order to familarize yourself with the smooth and rough waters ahead? You are not obligated to talk to him. You could always travel on without knowledge. "Live and learn" as they say. You could travel with blindfolds on. But would you want to?

Welcome aboard to this time travel journey. I am going to enjoy having you along. I have traveled by myself so often that it will be a pleasure to have some company. Welcome aboard. The trip is about to begin.