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.
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