Trader's World article, fall 2008
The
Three Types of Traders
Why They Win & Why They Lose
Throughout the years, we have continued
to seek out and make available further correlating material to support and develop this thesis, adding to our
collections important lost works and new material on these subjects, ranging
from market analysis, to astroeconomics, to scientific and esoteric treatises,
which provide an elucidation of the basis of such universal theories. As a major part of this process, we continually
search for and discover new resources and experts within these fields, and
encourage and work with them to develop new presentations and advancements
of these concepts, such as we did with the work of Daniel T. Ferrera, whose
books and courses have significantly advanced the understanding of Gann analysis,
cycle research, wave mechanic market structure, long term forecasting, including
a 100 year forecast of the Dow Jones Averages, out to 2108 (which accurately
predicted the Oct 07 top and current market declines), automated
trading systems, and a number of other key topics.
As a continuation of this process, we are very happy to announce the
unveiling of a new level and aspect of this work, one which many would consider
to be the most valuable and important aspect, the application of the theoretical
work to the most difficult and applied field of successfully trading the financial
markets. We are convinced that the course we present
to you here is represents one of the very best applied trading courses ever
made available to the public, and certainly the best that we have ever seen
in our 25 years of experience.
Over the many years that we have been
closely involved in this field, we have had the opportunity to meet 1000’s of
analysts and traders, and we have found that those individuals who have immersed
themselves into this tradition generally fall into 3 categories. First, there
are those who have invested a considerable amount of time and money into their research,
but who have never taken the step of actually applying it to trading, remaining
primarily theoretical researchers. Second
are those who have invested the same cost and energy into the work, but who
have also spent years attempting to become successful traders without ever
finding the necessary Key to produce the trading results they desire. Third are the successful professional traders
who have developed working applications which provide them with moderate to extreme
success in the markets, enough to make trading their only or primary
profession. This third category
represents our primary and most serious clientele, those most anxious for each
new piece of material we uncover, because each added insight contributes to
their overall understanding and improves their success in the markets.
In our ongoing search for new material,
one of the key elements we most painstakingly seek are methods and insights
which will help turn these first two categories of analysts into the third
category of successful traders. However,
as most of you reading this well know, this is the most difficult category
of teaching material to find. The reason
for this is twofold. First, is that
those professional traders who understand the true methods of successful trading
are reticent in giving up their hard-won secrets that are the source of their
income and sustenance, in part because they are afraid that public knowledge
of such principles will lessen the effectiveness of the techniques in their
own trading, and partly because many of them feel that success in trading
is something only earned by an individual’s own effort and intelligence. When such traders do write books, many of the
best of which are the books to be found in our catalog, such as the work of
W. D. Gann, they present the work in such a way as to make it exceedingly
difficult to penetrate into the true methodologies they are actually using
to successfully make money in the markets.
It is evident in reading such works that there are profound insights
contained therein, and with much hard labor, some analysts are able to penetrate
the veils and connect the missing links to understand the hidden applications,
these generally being the third category mentioned above. The others scratch their heads and continue
their search for the missing Key that will provide them with the success they
have so long sought.
The second reason that it is difficult
to discover working trading applications is often dismissed as being the result
of there being only a particular type of person, with the proper intellectual
faculties, emotional balance, and an engineering type of mind that is necessary
for trading the markets, and that this type of person is quite rare and special.
Some have come to the conclusion that there are theorists and there
are traders, and that never the twain shall meet.
If you don’t already have “it,” you won’t get “it,” and will forever
remain in a circular quest for the unattainable.
While it is certainly true that some people simply do not have the
emotional stamina for the art of trading, which requires the strength to be
able to make hard decisions and initiate upon them at the opportune time,
and then to ride the emotional roller coaster of watching the market move
with, or worse, against you, we feel that the actual truth stems from the
simple fact that 95% of those who attempt to trade the markets are lacking
the fundamental principles, insights, strategy, and knowledge required to
be a successful trader.
Once one understands, however, that
it is not some magic wand that will make one a successful trader, but a collection
of knowledge and applied tools which have actually been time tested and proven
to work in the markets that is the missing link, one is able to set out on
the quest to discover those needed tools. Most aspiring traders fall short at this point,
because they lack the dedication and determination to spend the time and money
it takes to discover these tools. In
having known 1000’s of traders, one absolute fact that is consistent amongst
all of those who are truly successful, is that they have generally spent 10’s
of thousands of dollars, if not $100’s of thousands on their education and
research. Most have extensive libraries,
and have attended dozens of seminars and trading courses, and most agree that
very few of them were worth the money, and yet they continue to search until
they find something that works. One
of the most common facts about unsuccessful traders is that they are continuously
hesitant to spend enough time and money to acquire a real education in the
markets. W. D. Gann said that in order
to make “Speculation a Profitable Profession” (the title of one of his courses)
one must become a true professional about it, and acquire a professional level
education. Dr. Baumring used to say
that you don’t become a brain surgeon in a day, but only through long, hard
study, 7-10 years of study, yet millions of people think that for some strange
reason they can become a trader overnight, and that it is easy.
What’s particularly amazing is that most people will spend $100,000 to $200,000 on a college education, the tuition at most private schools these days being $40k a year!, yet they balk at spending $5-10,000 obtaining an education in the markets. They hardly realize that there is very little taught at a university that is not publicly available for FREE in any public library or on the Internet. And yet they spend this money without any thought of whether they are receiving an education that will provide sustenance for them and their families for the rest of their lives. Certainly, there are some professions which require specific academic standards, credentials, and specialized training in order to work in those fields, but the majority of students at college are not developing such specialized training. And again, what we are discussing here is trading, and anyone who has looked at any academic curricula or been to college, can tell you that there is absolutely NO education available at universities that teaches anyone how to trade! And yet in the modern world, every individual who has any savings or a simple 401K will find themselves confronted with the necessity to make financial decisions for which they are totally unqualified and unprepared.
People can obtain an MBA and get a job
on Wall Street, but the disastrous state of our current economy, the dangerous
jeopardy of the banking system, and the recent collapse of almost all of the
great old Wall Street financial firms, should be enough to demonstrate that
these sophisticated educations provide even the experts with very little true
knowledge about the markets.
LINKS TO OUR BEST MARKET BOOKS & COURSES:
OUR COMPLETE FINANCIAL MARKET BOOKSTORE
DANIEL T. FERRERA COURSES & YEARLY FORECASTS
W. D. GANN COURSES & RECOMMENDED READING LIST
DR. JEROME BAUMRING'S LAW OF VIBRATION COURSES
SACRED SCIENCE INSTITUTE HOMEPAGE
Sincerely,
William
Bradstreet Stewart
Executive Director
Institute of Cosmological Economics
& Sacred Science Institute
Email: institute@sacredscience.com
International: 951-659-8181
Toll Free in US: 800-756-6141
Fax: 951-346-5590
It should not be assumed that the methods, techniques, or indicators presented
in these products will be profitable or that they will not result in losses.
There is no assurance that the strategies and methods presented in this book
will be successful for you. Past results are not necessarily indicative of
future performance. The examples presented in this book are for educational
purposes only. The data used is believed to be from reliable sources but cannot
be guaranteed. The methods presented are not solicitations of any order to
buy or sell. The author, publisher, and all affiliates assume no responsibility
for your trading results, and will not be liable for any loss, damage or liability
directly or indirectly caused by the usage of this material. There is considerable
risk of loss in Futures, Stock and Options trading. You should only use risk
capital in all such endeavors. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT
WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.