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