Key to the Secrets - A Traders Primer

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Key to the Secrets

A Trader's Primert

By Neall Concord-Cushing

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Neall Concord-Cushing with AI! Rights Reserved. All)' copying andior distribution q(this material ofany

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Key fo tlte Secrets

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Table of Contents

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Preface ......................................................................................3

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Chapter 1

Keys and Secrets .........................................................6

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Chapter 2

Keys to the Law of Vibration....................................... .11

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Chapter 3

Keys to Trading ........................................................24

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Chapter 4

Keys to Forecasting ................................................... 34

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Chapter 5

Money Management Keys .......................................... .43

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Chapter 6

Gravity Centers ...................................................... .49

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Chapter 7

First Trade "Harmonics ............................................... 75

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Chapter 8

Action vs. Alignment. .............................................. 10 1

Chapter 9

Secret of the Key Note ............................................. 107

Chapter 10

Magic and Miracles - The Secret Key ........................... .113

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Appendix A Aligning Internal Vibrations ....................................... ]21

Appendix B Charts and Additional Infonnation ................................ 133

Epilogue................................................................................. 151

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Preface

Before you embark 011 al1Y path

Ask the qllestion,

Does this path lurce a heart?

If the answer is 110,

You will knolP it

And thell you must choose another path.

The trouble is that nobody asks the question.

Alld when a mall filially realizes

That he has taken n path without a heart

The path is ready to killllim.

--Carlos Castaneda

Don't you just love beginnings? Like spring, everything is new and starting to break out of the long sleeping soil and a rich energy exudes from everything. The barren and cold winter has prepared us for a great awakening and we are eager to see what is in store for us. The beginning of this book holds the same promise or it really holds anything you want it to hold, for it is your book and it is your mind that will engage with the many words on these pages. \Vhat you decide to do with them will detennine what grows from your spring soil. It's an unlimited opportunity to find anything you are looking for with one stipulation; you need to know what you are looking for. You are literally at a new beginning. a starting place that is unencumbered from the old ways that haven't worked as well as you've wanted. You are holding this book because you want something different and you are ready to change. So let's change, lefs release those old ideas that haven't worked and let these new ones fInd a place to reside in your mind. You can always go back and get the old ones if these don't work, but you \vant to fInd more in life. you want to find peace of mind and ease of doing what you desire to do. So this is a good beginning.

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Relax and enjoy the trip. Hold ofTjudgment and old ideas that want to slmv you down. Let go of the oars you have been paddling up stream with and start a gentle journey with the current of life and see how easily it will bring you aU that you desire. Life is ready to give you all you want as soon as you say yes and let go of all the no's, I cant's, and it won't happens. These words have been around too long, let them go and find new ones that allow dreams to literally come true. So what is this book about? From the title, it says it's about "keys to secrets". Of course the obvious meaning if you've read the Secrets Books. it's about these books. Well yes it is and yes it is about much more too. If you have read some or all of the Secrets Books, this will add to them and bring about a correlation and how they can work together to aid in making the trading experience more profitable and fun.

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If you haven't read the Secrets Books, then this is an overview and introduction to what they are about. From the titles. we can see that the books address trading, forecasting and the Law of Vibration. As you read this book and more importantly read and tie together the other more definitive books. it will bring it all together into a cohesive understanding of your self and the trading experience. You literally can have an)1hing you want. In trading this includes unlimited profit. insight, enjoyment fulfillment and anything else you truly desire . It is up to each of you to become clear just what it is you want and then to fol1ow through with a plan to get it. The Secrets Books provide a very simple and easy to follow plan if you want to use it. It isn't the only one and it isn't for everyone. Each of you will ultimately find how you will do it, but what you read in these volumes can help guide you to a new place of seeing what you can build from. You need a stable platform to create from and until you are ready to stand on it and define your wants and desires, you will not realize your life's purpose. Your purpose is to be you in the most authentic way you can. To find and play with your innate gifts and talents and to blend a harmonious t10w of actions into the unique pattern you represent here. We each have a song to sing, so to speak. When you find your song and sing it to the world. you become that which you were born to do.

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In that clarity, you resonate at a frequency that is heard throughout the Universe and fulfills the individual space/time you are. You add to this Universe your gift and as such the whole becomes more. You become more and with that you experience your fullness ofiov. , " It's a great song. Are you ready to sing it? We are all ready to hear it when you don't hold back and you become wi1ling to let it flow out freely and clearly. Every sound that makes its debut in our world for the first time is innocence personified. So you are this innocence and with this new path you are starting right now at the beginning of this book you embark on this journey of finding more of what you want

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in life. More of who you want to be and more of what you want to have. You are at the door opening to a new possibility and as you allmv more to come in you expand your experience to embrace it. Peaceful Journey my friend---­

Always do

What YOll are afraid to do

T11lst your instinct to tile end

Though you can render 110 reason

Ralph {Valdo Emerson

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Chapter 1

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Keys and Secrets

Curiosity

Is lying 1111/'ait

For every secret

--Ralph

~Valdo

Emerson

Ok. here you go ... Well. one last time ... are you sure you know where you want to go? One last chance to make up your mind before you get lost in the words of someone else instead of being master of your own vessel heading to the destination you planned. If you want to spend some time and get clear about your intentions for reading this book, then go ahead and write them down. You'll forget you know!!!! Write them down and remember to look at them later today, tomorrow, next \\leek and until you don't need to look any more. When you have clearly set in mind your desire, it is just a matter of aligning your nature with this moment and that desire becomes real. it becomes the environment you live in the present moment. All of creation is made \\lith our alignment of energy with energy. Alignment of vibration with vibration and the resultant pattems we call reality is what we get to experience and enjoy. Or we default into a mixture of chaos and dissonant patterns that are not harmonious to our natural state and we experience the other side of peace and joy, we get to have a lesson in life to show us where we went off course and that it is time to get back on track. Don't you want to set the proper course, to get on track and follow it to your bliss? You want to realize your natural perfection in this magnificent world and add to it your contribution of your self. your experiences and your creations you will leave for

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all. Welcome to this possibility and stay awake. irs too easy to fall back to sleep and not know where you are or what you want. What are Keys? What are Secrets? Yes we all have our own definitions and that is fine. but because we are reading this together, we need to know what each of us is talking about. I need to tell you what I mean and you need to tell yourself what you are hearing. When they are the same then communication is taking place and we move down the path together. When we don't understand. we get lost, and until we get back together this exercise of reading this book is futile. Ok, first---what are keys? The first thing that comes to mind is a ke.v is something used to open a lock. Car keys, door keys, safe deposit box keys. ya ...those full of jewels and money and what ever else you consider treasure. It's something you have to open in order to get in and take what you want. You wouldn't necessarily want to open a locked box and find out it contains thousands of bees, that when you open the door they get very determined to chase you away. [fyou were a beekeeper and dressed properly and wanted to get the honey from inside the hive, you would "want" to open the lock and go inside. Otherwise, you don't want to open it. You don't have a clear desire to play with the bees. In trading, we all seem to want to open the lock to the \vorld of trading, but do we clearly choose which world that will be? Are we dressed properly for the experience that will follow when we open the lock? Are we dressed properly and have the tools to do whatever we think we want to do? To be able to collect the honey and not be affected by the bees who have sharp stingers ready to take us out at their convenience. Keys are wonderful tools in life. they are necessary to allow us entrance into the new and unknown worlds of creation and the future. They are individualized markers within our self. that open time and space to our view and lets us reach out and hold what we have called to us with our intentions and desires. Noticing our ability to use the keys we have fashioned for our locks, lets us move more easily through this sometimes cloudy world. We see clearly, when we are focused on something we have an interest in. \Vhen \\'e say yes and know how to dress for the occasion, we enjoy the honey we get to find inside.

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Ok, so one key is to open a lock. Another kind of key is an answer to a question or riddle. It's a clue, an additional piece of information that brings completion to a partial thought. an incomplete statement or a part of a whole. When there is less than a whole vibrational pattern then it is usually unrecognizable. Something that can't be re-cognized is not known to us. When it is not known to us, we have no experience with it in our reality.

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So when we lack an answer to our question. or the infonnation we are looking for, to "know" what we want or desire. then that severely limits what we get to have in our life. Not having this key to a successful trading experience would be the same as saying we don't know how to trade and be successful. It is the key we lack to enjoying our journey with trading. Another "key" is defined as a legend to a map. Perhaps we could substitute chart for the word map and see hmv that fits in our trading world. Do you see the charts you look at each day with the same surety that you can look at a road map and know exactly how to use the map to get to where you want to go? Does your chart of the market have a legend in the comer that tells you exactly what means what? A road map would be useless if we didn't know what all the lines meant and hmv far an increment on the map represented in the real world. A chart is just as useless, if we don't know what the lines mean and how they represent movement in the real world. These keys are part of what makes life easy or hard, clear or confused, abundant or not. Let's quickly go through some more of the definitions of what a key may be, A set o.finstructions governing the encipherment and decipherment of messages A system oftones and harmonies generated from a hierarchical scale ofseven tones based on a tonic Attune, to bring into harmony or conformity To be essential to: p1a.v the most important part in Something that gives an explanation or identification or provides a solution An aid to interpretation or identification

If you are looking for a key to experiencing the forecasting and trading game as an enjoyable and profitable adventure, then you must first decide where this key is going to fit. From the above definitions, it becomes apparent there are many meanings to the word "key", Any of them could be applicable to trading but what you want to do here is to get very precise and eliminate any elements that would throw you off course, whatever that course may be. If the right opportunity were placed before you would you take it? Is this a legitimate question? Some would say ...of course you would take it because it is the right one. Others may say I'm not sure and they would have to think about it. \Vby would they 8

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have to think about it? Because they really don't know yet what the right opportunity is. Until you are sure. until you have made your mind up as to ''-'hat is right for you, you won't be able to take it. and you won't be the one that lets it come into your expenence. This allowing is what \ve need to talk about right here, before you can continue reading what is to come in this book ...or any book for that matter. Until you are willing to make up your mind and say what you want. what you say is ok, what you are willing to allow. you are not ready to move ahead. Moving ahead requires one to know which way is ahead. don't reallv... know what it is for. or what it will What good is a kev. any key. ifvou ...... "'" open for you? Even when you put it in a lock and open it, you seldom recognize what it gives to you. unless you are looking for it. You always recognize what you want. So, what do I want. really want. and I'll find it. ."...."

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Ok, so there are many keys, now \vhat is a "secref'? Secrets are something we don't want to tell anybody. We want to keep it to our self. Secrets can also be something we don't know. or somebody isn't telling ·'us·'. Sounds like a two-way street here and something is hidden to one or the other side of the street. It doesn't matter which side of the street we are on. \ve still have to know what we are

looking for or we will not know when \ve find it or have it. This knowing what we are looking for is the basis for finding and having anything/everything. So if I'm looking for a way to trade and be profitable and have fun doing it. I need to already know what it is. Did you hear it? You need to write the script for your story. You can't use someone else' s, that is their secret. You need to decide what you want and then allow it to come. So by now you are probably hearing what I am talking about. or you are getting a little upset that I keep talking about this for so long and you want to get on to the "good" stuff in the book (what Neall is going to say!). 'Yell, the good stutTis what you say. not what I say, and until you hear it, you will never get it. The book is great to move you to a place to make up your mind, and it can give you many ideas you may want to consider, but it is only a piece of the puzzle you are putting together. and you need the whole puzzle. Your puzzle. the one you recognize as it comes together and seems so right. Looks so beautiful and feels so satisfying Alright. you hear me. so \ve'll go on. Just remember to pay attention to your puzzle, not mine. You will never have all the pieces to mine or anyone else's. You absolutely have all the pieces to yours. This is the "Secret" that is on your street and it has all the honey you want. Which side are you on? Do you see it? Ifnot. you better stop. You don't know where you are going. (Well ok. I'll tell you which way you're going. You are going the 9

wrong way, when you don't know where you are going!!!) So \\Tite your secret down for you, it's the only way you will knO\v t'Or sure. If you can write it down in detaiL you can decide if ifs enough or too little. if it is still what I want (because things change). When it is still what I want and matching my creative platform, I will get it.

It's not a secret when you know what it is and you are willing to live it. That is what life is about. But until \ye figure out what these secrets are. on both sides of the street, we will not be in sync with our natural creative force. We will not be able to summon all the elements of our unfulfilled desires and enjoy unbounded freedom in this life. Unraveling what we are calling secrets will reveal what the rest of our story is, and we will be able to express and offer to a harmonious universe, our gift. our true nature and essence that we are. In that state, \ve are standing on the edge of unlimited opportunity and joy. which is our true self.

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Chapter 2

Keys to the Law of Vibration

It's not

l;V7wt you look at

That matters

It's 71l111It you see

Henry Dal'id Thoreau

As I look back at how I wrote the Secret's books. it came to me that I had written them in an order that seems backwards now. The first book was the Forecasting book. then the Trading book and then the Law of Vibration. I think I did this at the time because most traders, including myself were asking "how can I know what the market will do". There is this hoping to find a way to be on the right side of a trade so I can WIn.

Then I realized that even ifI knew where the market was going, I still needed to be able to trade successfully. Trading is more than just buying or selling in the right direction. Getting into the market in the right direction is really the easy part of trading. You can do this without even knowing where the trend is going 50% of the time, and the other 50% of the time you find out very quickly and you can get out and get back in, in the right direction. That is if you know how to trade. So in a sense the Forecasting books seem to lose some of their importance or value, when I know how to trade. So I wrote the Secrets of Tradin2: and showed a wav" of trading \vith or without the tools of forecasting and proved it is indeed possible and probable to be as successful as I desire. ~.

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But \J,lith this came a lessening of the fun of trading. Trading is an experience of tremendous variety for many different kinds of personalities. Our ideas and feelings along the path ohvhat we call trading is a \vonderfully full experience. When we take away the quest to finding the secrets of forecasting then trading becomes a ditlerent journey. A journey that seems a little more sterile and exact and not infused with the mystery of finding what the future holds. So I see the interesting dynamic of trading is not just making money. it is an activity that brings together my unique energy and desire with an adventure into a world of cycles and mystery. money and markets. greed and tear and all the emotions and thoughts that could possibly be. It is an unlimited adventure into a world as fascinating as we are \villing to let it be. The final book the Law of Vibration. is an enigma of sorts. It delves into the very depths of creation and can be seen as eliminating the first two books completely. Once one understands the Law it is a key that opens the door to everything we want, literally. Everything becomes available and without the need for all the action we have been seeing as necessary in the past. This too brings a change in the outcome we will experience. By not needing to know hmv to forecast or how to trade we can still be as successful as we desire. It is our "desire" that we manifest into reality, \\lith or without all the effort and need for matching an ancient pattern or way of doing it. In the next tew chapters 1 will go back through the pathway these books have laid for the reader to find a change in an old routine. Or perhaps it could be a pathway to a whole new possibility and pattern to start living a ne\v one. The result will hopefully be a more abundant life. full of ones joyful desiring brought into reality. We are here on Earth to fulfill the measure of our creation and unless we are willing to move through our old ways. we will never realize our new ones and what they hold for us. Let's start with the Secrets of the Law of Vibration. I'm not going to re-write in this book what the original book contains. It is a Vel)' complete and in depth discourse on the Law of Vibration. so \vhat we are going to do here is encourage us to look again and again at the original volume until we find our new way. our ability to create and manitest what we desire. Because we grew up in an environment that may have been quite different from the teachings ofthe Law of Vibration. \ve may have to let go of a lot of information that will not serve us in our new quest. Letting go of what we think we know is a lot like cutting off one of our appendages. We are not easily convinced we can do without our ann or leg and we value our old foundational thoughts just as convincingly. But until we move a\vay from the source of distraction will we see the simple clarity we are looking tor. These old ideas are so entrenched within our being that it usually takes some time for a new way to become established. That is why reading a book one time and expecting 12

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a big change to occur is quite unlikely. We must revisit the new possibility over and over until it becomes an old friend too. an old comfortable idea the same way our early ideas found their place in our mind and behavior. So if you have read Secrets of the Law of Vibration once. then wonderful. If you have read it twice. this is wonderful. Ifyou've read it more than (\vice, wonderful, too. Each is wonderful. but each is different. The more you accustom yourself to a certain concept the more it becomes familiar. The more familiar, the more it has power to generate from v,;ithin a pattern in alignment with your inherent nature. It is our inherent nature that creates and allows space and time to fill our experience with what we \vant. Most of the things we learned in early childhood are still present in our daily lives. We can notice these if we pay attention and look. but most of us are too busy living in them to stop and take a look. It is possible that these early concepts and beliefs are not serving us as well as we may \vam. How we can know that, is to pay attention to how we are teeling. Are we happy and content filled with joy and peace of mind? Or are we unhappy at times. filled with fear or anxiety, frustration or boredom. sadness or some form of upset that we want to change? If so, then we are using an old way that doesn'1 work anymore and we need 10 find a new one. Remember when you were little and would cry to get your diaper changed. or be ted or to just get some attention and love? Hm\' well does that technique work today as an adult? It really doesn't and most of us have let it go and found a better way. Throwing a tantrum is a poor foundation for getting what you want. How well does your personality and expertise serve you as a trader? In a sense, we started trading as an infant and probably found a way that kinda worked but is it really working now? Do we need to let go of the old ways and find a new one that will really give us what we want? The Law of Vibration is a new way for most of us. It may take some time to understand and to allow but it's a proven and easy way to bring change into our life; to allow new opportunity in any form into our life. It is an unlimited possibility that will literally manifest anything \ve are clear about: anything that we can desire within a compatible framework of beliefs. Ifwe are ready to change; wanting more in our life. then this is an easy and natural way to do it. Whether we will or not is yet to be seen.

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I will go back through parts of the book as an incentive to visit it again and encourage this change we all desire. But until we move away from the old way. enough to let in something new. we are stuck. We are unable to change, really change. So as we go back and hear some this new stuff again. let it find a familiar place to reside, and to become ok. to become a desire that moves into a core belief that we can build from.

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The book is in two parts. external and internal. Because we are so entrenched in the externaL we have to start there and come to a place of \villingness to let some of it rest for a moment so we can see the internal. The internal is the source of change, not the external. Yes the external gets a lot of credit for creating change. but it is really the internal that causes the external. Kind of like the chicken and the egg. which is first? As long as we tocus on the external we are focusing on that which is already created, it is the present (but really the past). The internal is creating the present (but really generating the future). So until we notice this. \ve will do nothing with it. We will stay in our old way. the external. There is a lot of space given in the book to the externaL because until we notice what it is. we won't be willing to give it a rest and choose something else for a moment. When we really see this external as past. then we can see it is old and not creative. It is done, a creation that is done and not forming newness. Not that form isn't wonderful. it is. But we are looking here at change and change cannot come from that which is already done. stopped and sitting there in space and time as a form, solid and heavy and stopped. Now that may sound a little heavy, but to get the point across. let's see it as it is. The old stuff out there in our environment is a done deal. The past will never change. the present is done too. The present will become the past instantly, right now. and that doesn't leave any time or space to do anything with it. We must move into the future to create something new, to create change. This future is found in our internaL within our mind. so the Law of Vibration lays out a very simple picture of this internal and external if we will look. You can't hold the old external in front of the internal and have a clear picture. They are two different views and trying to combine them will only cause one to be confused. Confusion has never created anything; clarity is the creator in this universe and until that clarity is focused within a compatible energy matrix or vibration, it will not work here. It becomes dissonance and quickly diminishes into static or white noise if you will. Not seen as form. The Law of Vibration is not a complex or difficult idea to understand and use. We can talk about it in many ways, and my way may not be what you may hear easily. But with a little willingness. it is grasped naturally, for that is what you really are. You are an extension of the creative process we are calling the Law of Vibration. It is a natural process that is prevalent all around us. in nature and in everything we hear, see, feeL taste or smell. It is also everything we can image and from that comes our experience with it. Spending more time with it gives us more understanding. With more understanding we come into alignment with it and in sync with how it works. When you are in sync 14

with the Law of Vibration you are in sync \vith all that is available for manifestation into this space/time experience. everything you desire. Be clear about what you desire and you will have it, that is, when you follow the Law of Vibration. Going against the Law is like getting a ticket for going against a traft1c law. We don't like that out come; it costs us our time and resources to tight it. Going \vith the Law of Vibration is to give our self what we want. Driving down the road in sync with the traffic laws lets us easily have the experience we want, to get from here to there. Being clear about our desires and wants and being in sync with the Law will give us exactly \vhat we want. It is a cause and effect process that is easy to see in external events and when we become familiar with it as an internal process, we move to a place of ease with generating our desires into future events.

L of V Part One

H01/1 often 1foulId v\1tere I should be going Only by setting out For somewhere else R. Buckminster Fuller

I will list the Table of contents for Part One and as I talk about this section you may want to review some of the material in the Book. It is not the purpose of this book to go into all the detail because it is quite extensive, but it is more intended to remind each of us what we want and if we are on track to getting it. We must change if we don't have it yet. This change comes from something new. a new way of seeing, of thinking of desiring. This review can be a catalyst.

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Table of contents

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Fore'\\ord,« ,. ,... ,

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1• Part I

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Introduction

Part One

Chapter 1

Vibrational Harmony in the Market.

Chapter 2

Octave Shells and Harmonic Doubling in the MarkeL.

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Chapter 3

W. D. Gann and the La\\ofVibratiol1«.

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Chapter 4

Vibration alld

Chapter :5

Law of Vibration alld the lI,la,ters orlhe Far East",

Chapter 6

Ouspensky and the Law ofVihration

Chapter 7

Spatial Representation " ..... , ... , ...

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ChapterS

VibratIonal Time" "

117

Chapter 9

Vibration within Numbers.,

The External"

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I:-.merald Tablet;; of Thoth. .

'"'''' 58 ..... 66

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I had the opportunity of studying under Bucky Fuller before he died. I remember him as a short little man with very thick glasses that made his eyes appear very large to us on the other side looking in. He didn't seem to have to see this outside world to know where he was going but I had the feeling he wore the glasses so he could and then tell us who were "seeing so clearly", in our own language what he saw. He was aware of the internal nature of things but spoke with an external context for us to hear. This difference between external and internal is like night and day in many ways. It is representative of the polarity we are experiencing, and from this divergent view we bring our self into an amazing experience in life. It may be possible that we may only see one side for a whole life time. and that would still be a wonderful life. But with the knowledge of what else is here, it adds a big new beautiful arena we can walk into and literally command at will what we want and desire. This first part, the external. is what most of us pay attention to. It is what we see all around us and from birth we have taken it for granted to be what is real. The little child didn't argue with it, it was beautiful and full of wonder and delight. As a child we also were aware ofthe magic, the not so real stuif that was just as beautiful and ful1. But with our growing up, many of us lost the magic part and started to rely more

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and more on the external: probably because it is always there, like a default when we don't use the magic, the internal energies to create our own experience.

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Because we are so steeped in the external, we may \vant to pay attention to just what it is. Reading the tirst part of the Law of Vibration is for each of use to notice. To pay attention and say "oh ya. I remember this is what it is." After we remember, we can then know the difference between what we are in and what we have forgotten. Then with choice again. we can have both. The chapters on Gann. Thoth. Masters of the Far East and Ouspensky give us a varied perspective to see that they all are really saying the same thing, only using different words and examples. We all tell our own stories in our own language and it's often hard for someone else to really get it. But by going over it again and again, no matter what it is. it becomes ours. Then we begin to knO\v what it is .

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Whether we want to do this or noL is always our choice. We could just tell our own story and skip the part of repeating others. but we each get to choose and until we do. we don't. So it is good to know where \ve are right no\v. and trom this place we can move to another. If we are lost, so to speak, we don't knO\v where or how to move. Knowing what we want and how to get there is our peace of mind in this life. The chapters on vibrational harmony and octave shells are external examples of trading charts that reflect the sublime nature of the markets. We can see these underlying harmonies reflected in geometry. numbers. time and balanced spatial images. It is always there, it just a matter of how we want to see it or not. Seek and you will find ... your way. These chapters are to be read with an intent to see beyond them. for they are from the past and renect what already is. To desire something more or something new we must leave the old and move to the internal magic of newness. It is fine to look for answers in the old. but they are limited and may not hold your particular answer. You are a unique vibration that aligns with a specific set of energies. This alignment is called harmony; it is a natural blending of vibrations into a pattern or form that is you. Any other only be temporary at best if it forms at all.

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The universe is very exact as to what aligns and remains in reality. Your place in the universe is very specific and alignment is based on compatible energies aligning. You know it by the way things show up and how they feel to you. Peace and joy is alignment. fear and upset are signals you are ofT course somehow. This path is determined by the internal and creates the external. The external will never create your path. it is the path. So read all these external examples again in the book, or just start noticing them and realize they are completed and not part of the path that will come. Unless by default we stop desiring and '.vanting and settle for what just comes to us. We may get lucky

17

and we like it. but often it is not our natural energy and we suffer through it, waiting for the one that will be.

I, I,

This book reminds us that we are the one that decides and moves our nature through this world in peace and harmony or if we are oft: it reminds us to get back in sync. It is a constant balance of desire matched to fulfillment. Now as I talk about the external. I don't want to create the idea that the internal is better or not as good. Everything is perfection and has no better or less than except in a mind that has choice. Choice doesn't judge or create a hierarchy: it is a means of creating a course through the endless possibility of a tinite world. I love the chapters in part one about new ways to look at space (chapter 7) time (chapter 8) and numbers (Chapter 9). These chapters excite me to continue my journey into the unknown and find these new pearls of possibility.

I

The external is an amazing seed bed for new creations. As each spawns a new direction and we travel down its winding road, playing with all the magic around each comer. our life reflects a unique journey only we can take and only we can enjoy. Life in the external comes from the internal that came from the external and that from the internal. ... And so. it \veaves in and out of each other, each necessary for the other to exist and to flourish.

L of V Part Two It isn't my job

To flaY attention

To wlUlt I don't want

It is my job

To pay attention

To 1l'iuzt I wan t

A110n

I will list the Table of Contents tor this section also. Keep in mind that this information is my experience and that you may find it interesting but it is when you make it yours that it becomes effective as a catalyst. The more you entertain it in the mind, the sooner it becomes yours.

18

.....

Table of Contents (Continued) Part 2

1

Introduction

PartT"o

ThclnkmaL,

Chapter 10

Creation C\de ofVihration"

Chapter II

Speed in Vihrational Structures"

Chapter 12

Stream,ofYihration" , " , , """'",,'''''''

1M

Lhllptn 13

Point ofYibrational A\\'arencss,

185

Chapter 14

One fhought to Change the "'lind"

19]

Chapter \5

Trading with the Law nfVibration,,,

Chapter \6

Trading in Harmony \\jlh Vibrational L1emcnts"

Chaptcl'li

Trading in a \1alfix.. '

Chapter 18

The Hoh Grail of Trading

Appendix A

Numncrs, ,

Appendix B

"IDE"

Appendix ('

Additional Reading, and Chapter Supplements,

Appendix 0

Charts" '

" " ' " 126 ,,131 , ""

1

""",198

,"',"

,

'"

""",143 249

"",,,,,,,,,,255

"

Epilogue, '

1

14~

168

""".294 ,,,',' .301

In the second paI1 of the Secrets of the Law of Vibration we read of the "internal" part of the Law. Most people are not aware of the Law of Vibration and even those who have studied it have usually focused on the external. As humans we are fascinated \'\'ith this amazing external world around us and we spend a lot of time in it. What may be our next step down this magical path is to realize how this external is happening and how it is in our control if\:ve choose to create it. The internal is an explanation of how this path we are all on unfolds according to our particular vibrational pattern. matching with a creative matrix already in place. With our choice of which path \ve want to go on, \ve bring those energies into alignment with our own unique patterns and together they become a new form of space and time realized in our environment.

19

I

Realizing this key is available in our life. could bring about a grand transformational opportunity. Kno\ving \vhat we want and being aware of how to get is a sublime mystery \vithin our grasp. Reading this section about the internal part of the Law of Vibration will otler this possibility. but it is a process of allowing it to override the old way. the external viewpoint and seeing it with new eyes and embracing it with self~assurance.

,J As I have said many times in these works. you will have to read them more than once. more than tVv·ice. You ,viII need to read them until they become important and more real than your old thoughts and beliefs. If you really want to engage the magic of creation. the natural creation cycle of this universe. then you must align with it. You cannot be aligned with any extraneous or "other old way". It must be clear and pure and without any diminishment. It must be whole and clear and fully functionaL without dissonance and distortion.

I

When the La\v of Vibration is functioning in our life with clear intent and a hannonious underlying set of creational beliefs. it works. It has to work just as reliably as picking an apple otI a tree and watching it fall to the ground. Gravity abides the Law of Vibration perfectly. Every creative endeavor you undertake in agreement with the Law of Vibration will manifest perfectly. It has to. It is the law of the Universe as real as is the Law of Gravity. This may sound wonderful to you. like you have been wanting something like this your \\hole life. Or this may seem weird, or too far out hocus pocus stufT: because you have no reliable way of believing it yet. But remember it took awhile for you to believe you could read and write. ride a bicycle, run a marathon. trade or whatever you have come to believe (or not). It is just a matter of believing it and then it happens for you. Believing in a natural law of creation, in a Law of Vibration, is no ditIerent and the outcome from such a belief has an enormous possibility. Think of how much time you have spent trying to become a profitable trader. Where have you been looking? 99% of us would answer, "out there". In books, in workshops. in day after day sitting in front of a screen watching the market and trying to see what it is going to do. Seldom has the thought crossed our mind that we may what to look at "what are 'we' going to do". We have been waiting to see it outside of our selL and all that is available out there is someone else's way, an old \-vay. a past that is trying to tell us it is ours. But that is not where it will be found. it will come from the only place anything really comes from, it will come from the internaL our internal. I can go on and talk about this for pages and pages. for days and days, but what has to happen is that each of us has to decide it is what we want. and then do it. Let go of the ideas and beliefs that aren't working. at least for a moment so we can hold an

20

unadulterated. pure. complete desire and belief to let it happen. The only way anything won't happen is if I say so. I say so with an opposing desire and belief If this sounds easy and quite reasonable. then you have the beginnings to an underlying creative matrix to allmv this to happen. If you are still leery of it, have doubts and think something else is "more real", then you won't have this available yet. It will be your job. if you so choose. to move these old and new concepts around in your mind until they fonn a suitable base to allow it to be "more real" than the old ones you picked up in the past that say they aren't. It is only a matter of rearranging what you believe. what you are calling true and not true, what you are allowing to be real and what you aren't. The section on the internal L of V will give you ample inforn1ation to add to your old knowing, and perhaps move you into a place where you can see something besides the old way. Until there is an option to take a different route. we will continue to use the only one available to us. We won't even have an idea anything else is possible until we allow more in. So be gentle on yourself and when you are ready to move some of this old stuff around and let in another possibility, then you can start living in a whole new world; a world in which you have the ability to choose what you want and to realize it to create it. As you read these words, notice what you are feeling. Are you receptive to this new way? Are you somewhat hesitant'? Are you mad you bought this crazy book and wish you were doing something "more productive". Spend some time with "your answer". It is the clue to how close or far away you are to integrating the Law of Vibration into your life right now. If your old beliefs are very strong and are giving you many reasons this won't work. then it won't. If you have found enough similar beliefs to help support this possibility, then you will entertain it you will let it happen in your life. you will use it and create with it. This is the path we are exploring when we look at the internal. It is a very personal and unique perspective that only you will see. I can talk about it, but you will be the one to see it or not from your own willingness. Give yourself a reality check right now: ho\\' are you doing? Do you want it more than you don't? That is the key to knowing if you will get there. you want it more than you don't want it. Fear is usually the big stopper in our process. Fear we will lose a part of our self: an old part we have come to know and think it is who we are. But remember we are constantly changing. becoming a very ditferent person than we were in the past and we are still ok, we are still who we are. just a new me. In fact, we are probably glad we have changed and become something new. It would get a little boring if we never changed. So change is good and to be a new me is good, and it is ok to let my nature evolve into what the rest of me is. This feels good, to allow me to evolve. That is really what I want, so this new infonnation sounds ok.

21

I

Letting our self talk things through, like the above paragraphs is one way to rearrange the old and new thoughts and beliefs. Do it often and it will become familiar. it will become the ne\v me; an open and expansive being. willing to say what I want and let it come to me. Willing to experience this amazing creative process we are apart of. If you haven't read the Secrets of Vibration recently, I would suggest you pick it up and read it when you have a few spare moments. It will be much more conducive to bringing a positive change in your life. than spending that time watching a TV show, or arguing with your spouse or yelling at kids. or whatever you may do that you would rather not do. Just pick up the book when you are distracted or bored or in some kind of upset and see hov.7 it can change your experience. If you haven't read the book yet. I would suggest you do. It is a catalyst. and will give you an opportunity to change, to move into what you really want, to bring about your true desires. It won't do anything you don't want it to, so make up you mind what you want and then get it. Allow it to come to you because as soon as you are aligned with the vibrational patterns you desire they will come and be yours. They will form the experience you desire because that is how this universe works: this is what this universe is made up of, unique vibrational patterns we experience with our 5 senses as space/time and form. It is a cause and effect relationship that must happen. It is the only way it will happen. I want to briefly talk about the contents found in the internal section of the book. It's quite comprehensive and certainly not all that is there is necessary for you to understand so you will "get" it. Actually. you are the internal but you may need to look at this in a different way. The old way hasn't really served as a platform to understand our true nature because of our looking "out there" for the answers. Looking to the external evidence to support what we can and can't do. It has limited our ability to find it possible to desire anything or everything with knowledge that we can have it. The external is limited, it is finite. but the internal is unlimited. it is inflnite. In Chapters 10 through Chapter 12, there is a focus on describing and understanding the nature of vibration and how it relates to us. This is important so we can trust (believe) what we are going to base the Law of Vibration on so we can use it, Without a believable underpinning, we won't use it. There are plenty of examples from abstract to very real everyday experiences to associate with our experience. Read it until you believe it or it will never work as a creative matrix. Chapters 13 and 14 are associating the Law of Vibration with our mind and how. where we are coming from. determines where we can go. A thought can only align with a similar pattern. so our position in the present vibrational matrix determines 22

what and how we will create. Chapters 15 through 18 relate the Law of Vibration to trading. These chapters are not specific systems to use in trading, that is an external activity. If you want the external way to trade with step by step procedures on how to do it, then read Secrets of TradinSL and Ylaking Monev again. These chapters delve into the internal aspect of trading and how you can create a trading experience anyway you want. If you have been looking for the Holy Grail in the external you probably haven't found it. You can only have that "sure" thing relationship with yourself. When you find your true nature and utilize it for trading, it will become the effortless experience that brings you everything you desire. Literally it will bring you everything you desire (as long as it is in alignment with your core beliefs). The appendix has many additional readings, charts and supplements to enhance your base for creating this platform to manifest from. The more ideas and concepts we have to build fi'om the more quickly it will generate the outcome we desire. Time spent becoming familiar with this material will pay you a much more handsome return than watching the same old TV shows or whatever you may do in your spare time that you find less than exciting.

71lOse who beliel'e that the world ofbeing

Is gOl'erned by lllck or challce

A1ld tllat it depends UpO/1 material causes

Are far rel1lOl'ed from the diuine

A1ld from the 110tioll of tlze One

Plotinus

Chapter 3

I ,

Keys to Trading

TIle fibers ofall things

Halle their tension

And are strained

Like the strings

Of (lIl instrument

Hcnnj Dm,id Thoreau

This is a great chapter because I love this book. The Secrets of Trading and Making Monev makes trading appear so easy. The examples are very straight fonvard and simple. Not a lot of complexity to get lost in. though some of the systems we look at has many parts. They are optional and we can take them out or leave them in depending on what we want. It still works with the bare bones or with the full enchilada. In fact trading is easy and successful when it is simple. We usually tind trading to be dinicult. because \ve are not clear what we want to do, and we are not clear about the tools and methods we are using. If it is contusing, don't use it. Keep it simple and it will be successful. Here is the table of contents for the chapters. Look at the whole picture and then the parts. See how this brings together the foundation for what we want to create and then the way to do it. If you are still looking for a trading system, then consider what is written here. It can be a road map for finding your way~ for finding your method to accomplishing that which you want. First be sure you know what you want in a very clear and precise way. Clarity will create. Confusion will not.

24

I I I

I

Table of Contents ,

Preface .. ........... .

.J

Chapter I

In the Beginning ...

. .. 5

Chapter 2

Forecasting vs. Trading...

. 15

Chapter 3

Trading as a Business ..

Chapter 4

Mone\ ..

Chapter 5

V'-ealth Accumulation

Chapter 6

Winning and Losing Classkal Systems.

Chapter 7

Money Management

Chapter 8

Fear....

...62

Chapfer 9

Finding l\1y /,,\arket ..

. .67

. ....... 19

24

..27

. .....36

..........'9

Chapter 10

Trading S)stems and Plam,.

Chapfer 11

The Anatom) of a Trade.

Chapter 12

Trading Plans and Settings ..

Clwpter 13

Beyond the Bars.

Chapter 14

Flipping a Coin, the Heads and Tails of II..

.. 78

105

..132

.................. 147

Epilogue

.............. 164

Addendum A

Alternate Trade SYstems (e-mini S&P. eCBOT Gold 100 on

Addendum B

Alternate Combined Trade S) stem/Stop System

... 166

..... 175

............... 186

Last Thol/ght.

I'm going to talk about some of the chapters in an effort to encourage re-reading what you may have forgotten or perhaps missed the first time through. If you haven't read it yet. then] would suggest you do so. Without change you will not progress and without moving toward what you really want. you \-vill not get it. The book can be like the carrot in front of the horse. It gets the horse to move forward and to move to the place you want it to go. You have to move yourself, and sometimes we need to coax our self with come kind of carrot. We are too easily satistied with the status quo, but we really want to have our desires realized. So clarify what it is that is really wanted. and then give yourself a carrot to start the journey toward it. You will reach it. ..

If !JOlt

Evenjluhere

Is withill walking distance

have the time....... by Steven Wright

25

I ,

In the first two chapters. there is a great foundation that you may want to consider in what you may want a trading system to be built upon. Every business that is successful has a business plan. Trading is no different and when it is clear what this plan is and that you are willing to follow it, then the business will develop accordingly. Any building that is built has a blue print identifying everything that needs to go into it and the proper order in which it is to be built. When these two are satist1ed, it insures a completed building. The example in chapter two of a casino business plan may seem a little strange for a trading business plan. As you see the parts unfold and how they match very nicely with what a trading business needs to do to be successful. It becomes a possibility to consider. In tact it is more than a possibility when you really see it. The casino model. has no gambling element in it for the casino. They leave that for the customer. but this business doesn't gamble at all. It is very structured and defined and as such, it produces guaranteed profits. That is what we want in our trading plan ...guaranteed profits. In chapters 4 and 5 we get to revisit our thoughts about money and accumulation. These ideas we may hold in our head probably came from our early experiences in childhood. At that age they became very fixed in our minds because at that age we tended to believe everything. Even things that are not sensible to us now, but at that impressionable age. \ve were sponges willing to absorb lots of information so we could function in the family. school room. with our friends, etc. Now we can look at some of those ideas and perhaps decide we want to see things a little differently. Many early thoughts about money were probably a reflection of our parents. and perhaps we were lucky enough to have parents who saw money as plentiful, accessible and for our uninhibited use. But many parents had accumulated thoughts about money from their parents and some went through the great depression of the 30's and money took on a very peculiar meaning. Scarcity and lack became the major focus of many children's thoughts and these are not suitable for becoming an abundant trader who accumulates profits and is successful. So accumulation of wealth is not necessarily a given for everyone who trades. Yes, we need to be able to win. but more important we need to be able to keep it and let it increase. I love to read the definition of money I wrote down one day and it has become a mantra of sorts. I"lI put it here again because I like it. I like to read it. More importantly I'll put it here so you can read it and begin to see the beautiful child we are asking to come into our lives. It is a child that will continue to grow if we embrace it as our own.

26

A10ney I am the means for people all over the world to eat and play, to learn and laugh, to )'fOny and cry, I am all a/it. Everything can happen and people can say it is because ofme. I am innocent, just a piece a/paper. a metal disc, or a number in a computer memory. I change hands often and get to see the world or I lie hidden in a pocket, mattress or old can buried under the ground. I am cried over, laughed at, kissed, loved, hated and on and on. I am held tightly and thrown loose~v around; I am never enough and coveted b.v almost everyone. I am willing fo do what anyone asks as long as it fits in reali~v and so I am a ve~v honest thing, I can 'f be more or less, just me, no bigger no smaller. I can/eed a small child or blow them up, it all depends on you. I will change hands with everyone and willingly do what they say. I have no judgment; I am 100% active in doing the present movement without any thought to change what I have been told to do. I am obedient to carrying out }'our wishes. I am money. (Neal! Concord-Cushing)

Now whatever \ve have in our conscious and unconscious memory banks will be the basis we use to embrace this child (money). Ifwe don't like it for some reason then we won't take care of it and feed it and it will not grow and be a vibrant energy in our life. If on the other hand we love this child and want to cherish it and help it grow into all it can be, then we will enjoy a relationship with money that will be with us our whole life. Chap 4 and 5 are filled with opportunities to see this child in a new light. There are many examples of ways to play with it and nurture it into a very robust and hearty entity, filling our hem1s and coffers to overflowing. Money is energy but we can lose the connection with it, if we make it too nebulous. Keep it personal and be willing to care for it as you \vould your own child. Go back through the two chapters and then while this is fresh in our mind. review the Law of Vibration's internal nature. Create it into your experience and let it flourish into that which you envision it to be. Many of the examples in chap 5 have a time element for wealth to grow. It may appear that this time element is static, but I suggest we allow our internal creating platform to hold time in a more flexible state. Let energy be your slave, not you a slave to old energy concepts that will limit your ability to manifest. The key to all this wealth accumulation is seated in having a broad understanding to choose from and then holding it with a creation matrix that tits your time frame, not someone else's. Be willing to say what you want and you will get it. After reading Chap 6 "Winning and Losing", you should be able to know with a certainty, who creates winners and losers and how to be either one. I don't find many people who say they want to be a loser. They may admit they are one, but they don't want to be one. Everyone wants to win~ it feels better, it is healthier, it's more fun.

27

Go to page 5 I (,'Secrets of Trading and Making Money") and look at the graphic again. Who said the number 735 is a loser??? \\Iho created that innocent observation and what does it do to your ability to think clearly? This isn't rocket science. it is as plain as the nose on your face or the number on a screen; it is how we create winning and losing and how we experience the effects of our creation. Our trading ret1ects our current state of mind. and when we pay attention 10 the atmosphere we are trading in, and choose a beneficial platform to trade on, we are assured a much better result than when we don't. This chapter (Chap 6) says a lot about classical systems. These systems have been used for a long. long time and they work. What you may want to look at a little closer is the correlation of these systems 10 trading and how they fit your particular personality type. Traders that try to use a Martingales system can create a huge amount of stress until the system plays out and you recoup your position. Very few traders have the ability to think clearly under a lot of stress. If you can. then this may be for you. if you can't, this is not for you and you should never use it. You should never use anything that creates stress.

I

Once you know your unique pattern for optimal performance. then you create your trading system to match. Never force yourself into a "sure thing", "Holy Grail" system if it doesn't fit you. Even though you see someone else making Ions of money, it won't make you any. unless it ttts you. Better to have a simple effective system that you enjoy and prottt from. than to force the "Holy Grail" square peg into your round hole. Use your round peg; whatever it is ...because it works for you. Just a few thoughts about the Classical Systems in this chapter: the Martingales System would probably be very stressful for most people and not easy to use in trading. The D'Alembert and Labouchere are somewhat more cumbersome but are assured of a profitable outcome (remembering that this would only be a "part" of a more comprehensive money management system), The last example in the chapter starting on page 56 is worth studying some more, if you haven't already. Because of the space requirement in that book, those examples are limited and one may miss the subtle inference suggested. This example ofletting wins increase and cutting loses short is an axiom in almost every trading book written. \Vhat most books don't do, and what few traders ever ttgure out. is how to make this work. This last example is a great beginning to realizing this possibility of increasing wins and limiting losses from just a money management perspective. This example that shows a profitable result in both instances (System A and B, pages 56-58), can be

.

28

modified in several ways and made to fit many trading systems with the outcome being potentially guaranteed profitability. The example in the chapter uses a simple doubling of each win. This works very well if the number of consecutive wins reaches the amount in your system, ensuring a realized profit because then the amount reverts back to a smaller number and locks in the profit. The downside to doubling is that if it doesn't reach the number of consecutive wins when the last number is greater than the sum of the previous ones, a loss wipes out all the paper profit and then some. If you win four times and lose the fifth on a doubling system. here is the result:

] + 2 + 4 + 8 equals the first four wins and the total is 15. The fifth trade would have been with a doubling of 8 16. and so if the loss comes on the last trade of 16. then you wipe out all the previous 15 points and lose an additional 1 point. This is a good opportunity to see what you can come up with on your own to make this a better system (think about it before reading on). After you have spent all the time you want looking at your own thinking process and what mayor may not work. then go ahead and I'll illustrate another possibility. There are an unlimited number of possibilities and it would be important. if you were to use this type of system, that it be fine tuned to the trading system you are using. Ok, if you have finished, then here is something to consider: -rhe first trade that wins should be protected somehow so you at least breakeven or make some profit. We can't do that in a doubling system because the next trade is larger than the previous one. We win 1 on the first one and the second trade is 2. Ifwe lose, we lose more than we've won on the previous trade. So we can't have the next number be larger than the first one. If\ve started with 1 then all we can use for the next trade is 1. Now if we win again the second time, \ve have \von 1 + 1 = 2. so the third number we can use to trade with can't be larger than 2 or we will lose every1hing and then some. So we could use a 1 or 2 for our third trade. This insures that we will breakeven or have profit. (We are not taking into account commissions or slippage.) The next trade would be our 4th trade and so far we have won three in a row: 1 + 1 + (either 1 or 2) = either 3 or 4. so this fourth trade would have to be equal to or smaller than 3 or 4 and this will insure breakeven or profit. Ifwe get to the fifth win in a row and our first 4 wins = 1 + 1 + 2 + 4 = 8 then our fifth trade could be 8 or less and we would still breakeven or profit. If we won we would make 16 and if we lose we would breakeven. In the doubling example of 1.2,4.8.16 if we won. we would make 31 or if we lost we would lose 1 at each trade level. Now at first glance. one might say, well there's no question what I want to do. I want to make 31 and risk 1. But that is not how the market works, what we are doing here is waiting for a winning streak of five (or

29

whatever our number sequence is) to complete and then we profit. Depending on the svstem you are usinQ., if \ our win-lose ratio is 50/50 or'!??? then vou would have to take into account how many trades you take and lose more than you win: over and over until you get the string of five to insure the profit by taking it and cutting back to a smaller share or lot size. ""...

...L_~-.,---------" 2008

Fob

"''''

Apr

M~

2!iOOOOO I

Jur.

==~===--"==-=-======~~=--====~= ~I

Il== ,

Chart 6.4

As you can see in the above chart, there is only one "Clear Path Trend Line". This is not a really good indication of finding more tools that will work on this chart. But we knew we were starting with an un-squared chart. So let's move on and square a chart and see if we can get closer to what we are looking for.

57

-

---

----

-----

----

On this page we are going to square our chart to Scaling 3 X 2 points / day and see what we get. Instead Automatic of placing the Concentric Circles Tool on the Manual three points (ABC) we want to try something High: 1581.3 Low: 1195.4 new. We are going to place any "Clear Path Trendlines" on the bars and see if they show us • Square a potential intersect point that could be a GC. X '2 points per: On the chart below start laying out CPTL's Month- 'Year oj Day (Clear Path Trend Lines). As a suggestion to keep the number of CPTL' s to a reasonable amount, look for the CPTL' s that vector toward the center point of the three points we are looking at. .

Remember they have to hit at least two or more high or lows on the bars. Some CPTL 's will go through the bars without hitting them but we get our vector direction from the alignment ofthe Trendline hitting highs and lows o/the bars.

HOOOOOO

lli1l0000

12Sl.llOOCl

. . . 1201l0000

,r---'--------~------------------

'"'''''';:'

Feb

Chart 6.5

58

Here are CPTL'S for this chart. They are all valid, but what we are looking for is a common intersecting point we can use to apply tools. Looking for a common intersecting point is one way. Look at the chart below, and before studying it to thoroughly, go to the next page where an empty chart is available, and draw some lines on it. Then come back to this one if you want and see what else you can see. It is the process offmding what we are looking for that is important right now. It is finding our own way, and practicing that until we have an easy and natural way of finding these things. Looking at mine will add possibilities, but you are looking for your own.

l$li1OOO'l I

1~~ 1

1~~.00fJ0 I 1400.0000

13SJOOOO

1»:)0000

1~

________________________________________________________ 2OJ8

Fob

Chart 6.6

59

~lmoooo

Here is the same chart without the CPTL'S. This book is to learn from and not to save. Go ahead and draw on it, make notes and see what happens when you begin to make a connection with the market through the hand instead of always just through the head. There is additional awareness available when we are willing to use more of our self. Let your hand and eyes tell you more about what is going on here and see if you find a nice surprise. You may even hear your self saying "ah ha"!

- 1~~1

141lltmJ

1:1.il 0000

l:m.OOOO

12':ilOOOO

I~

____

~

______________________________________

~

________

--J'~OOOO

I. Chart 6.7

After you are satisfied with your practice, go ahead and go back and see what is on the past pages and then go ahead to the next. The journey is wherever I want to go, it is ready to tell me more when I pay attention and it is in all of it, not just the next new thing.

60

15000000

I450_ODJ

1400.0000

1'lSJ 0000

1300tmG

I

~ lZ511rml i

These are CPTL' but DOt what we

anI

t~"

work lTifb right DO\"f. 12OO,llXIl

I

Apr

't=eb

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Chart 6.8

On the next page is the chart filled in with all the CPTL'S. If you are done working with these charts then turn the page and go on. If you want to take the time to really study what we have been looking for on your own first, then go back and spend the time before seeing what I do. Once you see "my way" it will bias yours. Not that mine is not ok, but you are looking for the "ah ha", your way.

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There are "nine" on this chart as compared to the fIrst chart we looked at (chart 6.4) which had only one. This squared chart has a better likelihood of overlaying multiple tools that will "work" with each other. These squared charts are what we may caIl tuned harmonicaIly. They are an ideal underlayment for harmonic ratios of time and price to respond to. By respond I mean the movement that time and price makes across the chart will have many changes in direction, usuaIly we look at the changes in up and down, and call these changes in trend (CIT). These movements make their CIT's in accordance with lines on the patterns we are overlaying the chart with. Ifwe choose the right patterns and notice it's working weIl with this movement of bars, then we have a high degree of reliability in trusting our trading technique. This kind of a squared chart will accommodate many tools, and when used in conjunction with each other and a proven set of trading indicators and rules, one has the ingredients for success.

62

Let's add some other tools to this chart and see how they can add to our market understanding. I'm going to add Andrews Pitchfork and a Fibonacci Vortex. We already have the GC Circle with CPTL's so I will take then off for a while so the chart won't be so cluttered. Let's set the Andrews Pitchfork on major highs and lows, starting with the comer of the fork on B and the other comer on the high at D. When we pull the handle over to align the forks with the high at E and low at C we see that it lines up with the bottom of the long red bar (the one just before the gap down). This Fork is fitting very well and if you have read the Secrets of Forecasting chapters on Andrews Forks, then you see this is a very stable pattern with 4 hits on the walls. We have a lot we can do with this tool because it is very responsive to the bars.

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Now let's add another tool- a Fibonacci Vortex. Because this is one of the harder tools to master, I will explain one way to set it, but a much more detailed explanation is found in the Secrets of Forecasting Books, if this is one of the tools you want to use. This is a remarkable tool and when you acquire the skill to use it. First let's just place the Spokes on the Chart at a significant high or low. We'll use the low at C because it is further to the right of the chart and will give more opportunity to use the pattern into the future where the bars are going to be. This is the advantage ofthe Vortex; it projects into the future where the bars will "run into it". We are just using the spokes right now, because it is a simpler part of the tool, and we will add the spirals next. When we place the Spoke Center at C and rotate it until we fmd a matching hit for a high or low or perhaps a set of bars all aligning with it. It isn't necessary to fmd Clear Path hits with every spoke, but if you can it is one of the better placements for the Vortex. Not every chart will have a Clear Path pattern to set it to, so just spin the spokes and see what the best fit is.

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Here we see that this Vortex is hitting at B, C, the last bar on the chart so far, and the diagonal spoke going up to the left from C has all the bars following it in its major direction. This is a good fit so far, so let's set the spirals.

64

It's interesting, that when we have squared a chart that other tools are working on, it is easier to set the Vortex. Trying to set a Vortex on a chart, which has a skimpy underlayment (not many harmonic ratios aligning with the market because the squaring isn't optimal), makes it difficult to use it successfully. Let's start by adding both spirals (you can start with only one ifthat's easier for you). We will start the set with the smallest and work outward. Remember there are three axes with different spiral patterns we need to look at them all. So rotate each set out through the bars and watch for hits. Here is the first set of spirals. They are rotated out to point F where both the blue and red spirals cross (apex of the pattern) on the spoke and where it has a bar hit. Many times when the chart is squared well, this is a default position that will work quite often. Even though the bars going down into point F fit well and the spiral ends under point E work well, the pattern is too small and doesn't extend into the future (to the right ofthe last bar). This pattern isn't going to help project where the bars "will go".

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Let's rotate the Spirals again and this time line up the apex of the red and blue spirals on the spoke at point B where the low bar hits. Study this chart and see what you think about it being a good or bad match for the vortex. After you have decided, then take a pencil and mark on the chart where you think it is good and where it doesn't seem to work well. Also take into account that because this is a projection into the future, mark what you think the pattern gives or doesn't give for projecting a possible direction.

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After you feel you have practiced with this chart enough, then tum the page and see what I have done. Take one more look at the chart and see if you want to spend some more time, this is the last chance before you become biased with my ideas of what I think is going on.

66

Here is the chart with some arrows on it showing the major direction the bars are taking and how they are responding to the Vortex ' s spirals. They are actually doing quite well and leaving a line that is almost a Clear Path. These are what could be called curvilinear trendline and they have an amazing reliability at times of following the path of the bars when they are drawn on a well squared ,chart.

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The last arrow to the right is suggesting the bars could go down again at this spiral if it makes it up to there again. So if the next bar on the chart bounces on the spoke at F, then it has a possibility to move up to the next blue spiral and then follow it down. Looking over at D and E, this price area is a resistance level and could add weight to the possibility of a CrT at the Blue Spiral. If you go back to the Chart 6.10 where the Andrews Fork is projecting over into the same area of the chart, we see that it can allow this upward movement also without breaching the walls of the fork. Another possibility is that the next bar falls through the spoke and follows the red spiral down. In this case the drop appears to be very steep until it exits the confines of the red spiral.

67

Now let's put all the tools we are looking at back on the chart and see what we have? I'm going to leave offthe Clear Path Trendlines from the GC center to the bars except for the last one, because they are past indicators and won't help with the new bars. However, new trend lines drawn from the GC center to the new forming bars can be very helpful. Here is the chart with all the indicators so far.

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Take some time and study this chart. Assume you are trading it. What will you do? There are three possibilities. It will go up, down or sideways. What would you do in each case? Where would you set stops, or how would you enter and where would you take profit. When you have written it down, yes, written it down, then you can go on to the next page. Take this seriously and see what comes from it, write it down and in the next few pages we will let each new bar come onto the chart and you trade it. Write a scenario for each possibility, up, down, sideways.

68

If you wrote it down, good for you, you are on the path to "your way". If you didn't; then you are still looking for something I'm going to tell you. Well, you missed it. I already told you. Go back and read it again and do what I said to do. That is what I said. I'm not going to give you my way, it is impossible. All I can do is help you find yours. It actually is very easy, all you have to do is pay attention and it is already in front of you. If you did write down three scenarios, good for you, you are there and the rest of the story is unfolding before you. Continue and you'll fmd the whole story, your story. Here are some more ideas you may want to consider before going on to the next page where you' ll see the next bar and will never be able to do this again this same way. You will know forever, what that next bar is and it will totally change what you think and you can't learn what you can now. Because you don't know right now, it's a real situation, just like trading and you will have a real experience. Look ahead and see what that bars does (goes up, down, sideways) and it's not a real situation anymore. You have cheated so to speak and it isn't the same. The market won't let you cheat; it will make you play the real game. You need to make your self play the real game if you are serious about learning. Are we all on the same page? We are going to trade this situation like it's real and then go on? I'm giving each of us this whole page to get our mind in alignment with what we are reading this book for. We are reading this book so we can gain something new, not just information, but something new in the way we are going to trade and be successful. In order to do that we each must change from the old way to anew one. For most of us the new way is to stop reading and do the work of looking at what we personally are doing or not doing. Reading a book is usually to find out what the author has to say. But that isn't going to help us in our trading. We need to hear what we are saying and change ourselves to become something new and successful and prosperous or whatever it is we each want. Have I gone on long enough for each of us to stop and do what is really the value we will find in this book (to get our self to change). Go back and notice the last bar is in the middle of Andrews Fork and is also resting on the Vortex Spoke. It has also been coming down along the red spiral and the Clear Path Trendline from the GC. It is also resting on the circumference of the GC circle and as we look back to all the other places a bar came to rest on this circumference, it bounced and went back up. If it bounces, what will it do? If it falls through what will it do? Can it go sideways, and if so what will it do? Go back and look and while you are there use a pencil and do a little writing, you will be glad you did. (GO BACK before you see the BAR on the next page).

69

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The bar did just like it did at B and C, it bounced. This is a harmonically balanced chart that is revealing an underlying matrix that we can utilize and have a certain amount of confidence in. That is great in trading, to have confidence. Now that we see it has jumped up and has jumped up quite substantially, what are we going to do now? The next page has the next bar, so get ready for it and be prepared. What do I change? Add to, take away, just let it unfold more and then make another decision? Am I proactive or reactive? What do I want be as a trader? I'm practicing what I will become right now.

70

Here is the next bar. What do you think?

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The next chart will have three new bars on it. If you want to do each bar separately, then insert a piece paper on the next page before you open it and pull it slowly across the page from the right to the left until it reveals the next bar, then the next, etc. Be willing to be realistic with what we are doing here. If real money is on the line, what am I going to do?

71

This is the next three bars ...

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If we have confidence in this set of tools telling us something, what do we see now?

What are we going to do light now? Or have we already done it because we had a plan before the bar even showed up and our plan traded it as it unfolded. The bar is up against the forks wall, it is up against the blue spiral, there is room to go down into the spoke and circumference of the GC or to jump over the fork and blue spiral into the white space. What is the more likely with what we have been watching for the past many bars unfolding on this chart? Decide what you are doing and then go to the next page and see the next couple of bars.

72

Here are the next two bars.

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What is the plan now? The bars are up against the spoke, on the circumference of the GC circle. The last three times it was on the circumference, it bounced back into the circle, but here we are near the edge and if it bounces back up it will have to go straight up to stay in the circle. If it comes out of the circle what will I do? Think about stops, profit targets etc. When you are ready, go to the next page and see the next bars.

73

Here are the next couple of bars, how did we do? What did we do? What will we do now?

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The next bar didn't go up or down. It went sideways. So what did that tell us? Well if we look closer, we can see the bar is an inside bar, next to the red bar that is resting against the spoke and GC circumference. The new bar came out ofthe GC circle and is still resting on the spoke. But the important change is that it came out of the CG Circle. The more you watch CG circles, you'll see that there is a very high percentage/likelihood that once the bars exit the CG Circle, and it will very seldom go back into it. So the Odds for the next bar are good that it will not go up, back into the CG circle. There are also good odds that it will jump over the spoke, and treat it like a Clear Path and so the likelihood is that the next bar is down. In fact it was down and it gapped down. These are great tools to work with, when the chart is squared and the underlying matrix is supporting them. These kinds of charts and tools are what make trading fun.

74

Chapter 7

First Trade Harmonics

The obvious

Is that which is never seen

Until someone

Expresses it simply

KahliZ Gibran

Remember the example of looking at a car driving by and that all we can ever see is just one side ofthings. If we are standing on the west side ofthe road and a car is heading north, we can see the driver side of the car but the passenger's side is not in our view. Ifwe go over to the east side ofthe street and watch the same car drive by, then we can see the passenger side ofthe car. We can't stand on both sides of the street at the same time and so we can never see both sides at once. We are always limited to a 2 dimensional view of a plane that only reveals a 3D image because of our two eyes. And this is really only a stereoscopic view; remember like the old fashioned stereoscopes of the early 1900's. They were handheld viewers you looked into and could see two images superimposed to appear 3D. Well we are presented with the same kind of dilemma; we can see it as external or internal, but most of the time we are myopic and fail to see them both. So let's take a few chapters of external then come back to some more internal and see if we can't start seeing again.

75

In Secrets of Forecasting Book 1,chapter 4 - Finding Cycles from Scratch, there is the example of finding the harmonic vibration the stock A WE is moving to. It is a very revealing chapter as to what happens at the birth of a stock. The more you investigate what is available at the time of birth (and it isn't limited to stocks ...everything really) the more one can see what the entity is likely to do. In trading we are looking for what our trading market is "likely" to do, in fact we want to know as much about what it is likely to do as we can. So this information at the birth of a stock, commodity, option ... is worth our time figuring out. It is also worth knowing what "we" are likely to do and this is also found in our birth process. Astrologers look at the natal date of a person and figure out what that person is inclined to do and in most cases it was very accurate. Financial astrologers look at stocks and commodities and determine what the nature of that particular market is from the birth (first trade date, date of incorporation, date of binding legal entity, or 77?). There may be several choices as to what is the best birth date. In a person, it is limited pretty much, to when the body is born into the world on its own. So there aren't a lot of choices perhaps, but in a stock or commodity it may be questionable as to which one is more valid. One thing that is not questionable is the birth of the "chart" of the stock or entity. A chart begins with a first bar and that is the beginning. So looking at a chart of a stock or commodity is a very reliable way of knowing what the birth of the chart is. This is good, because we use the chart to trade from. Not the legal business entity itself but the chaIi. So the natal of the first bar on a chart is available but we also can have more information from the first few steps the market takes on the chart. The chart tracks the footprints of the bars as time passes and we see what kind of trail we are following. Remember on page 16 of the Secrets of Trading and Making Money book, we looked at one of the earlier meanings for the word trade. Trade = track, trail or way. Trading was more akin to tracking - for fmding the way or trail of a person or animal. So these first steps a stock or commodity takes from its birth on the chart is indeed part of trading. But it is a part we may have not remembered. We may only be looking at a part of the trading process and missing something very important that could tell us the WAY to trade. We are going to look at the first steps of a new chart. It is the stock Visa (V) and it has left its tracks for us to follow. We can look at what it did and see if it tells us something about knowing where it may be going and what it is going to do. This is looking at the external past and from that we are projecting into the future the possibility of something new. Seeing what that new is will be part of our trading experience.

76

Here is a daily chart of VISA (V). Its ftrst trading day was 3-19-2008. This chart begins quite differently than the A WE chart in Book 1. Study the chart and see what you can see.

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