experimentation is not part of the

experimentation is not part of the normal curriculum. Yet, what is taught in the classroom often has no basis in practical reality. In other words, experience is discounted. This means that modem man's knowledge — and the manner in which society measures his assumed decision-making abilities — often has no basis in reality. In civilized society, man is not continually forced to think for himself. Thus, today we have two forms of knowledge: that which comes directly as a result of one's own observation of reality, and that which comes from a derivative source such as a teacher, a book, a television show or movie, etc. The first form was all that man had prior to the introduction of sophisticated forms of communication. The second form modem man relies on heavily, often at the expense of being correct and accurate. The problem that comes from relying on the second form of knowledge is illustrated in what has been promulgated about organized markets. Most of what has been written and promoted, while generally accepted as correct, is illogical. (Surprisingly little published information has been compared to reality, thought through and revised.) Because of this discounting of exposure to, and observation of, market reality, little has been published which conceptualizes and develops a sound trading and investing understanding and approach. Until now, only one of the two possible logical approaches to organized futures, options, and stock markets has been advanced. This was presented in Securities Analysis, the groundbreaking work of Benjamin Graham and William Dodd. Graham and Dodd assumed that price and value were not necessarily equal in organized markets, and advocated that investors study fundamental (outside the market) information to locate situations where price was below value. To our knowledge, until now, no work has been published which has gone beyond Graham and Dodd to correctly specify how markets, particularly organized markets, function in reality, and how a person, once he understands the market, can put the odds of success in his favor to a considerable extent. Markets and Market Logic will present knowledge, but knowledge which is not distilled by what has been previously taught. The knowledge presented in this book is drawn directly from experience. Unfortunately, now that this knowledge is put in book form, it becomes part of the second category, knowledge once removed. It is therefore important for each reader to go beyond this book. Observe, reflect and analyze what is put forth herein as reality in markets familiar to you, and think for yourself. This should be feasible, since knowledge provided in this book will build upon each reader's own experience. This book will demonstrate that all markets act alike, a concept which should be understood by consumers who have practical exposure to everyday markets. This is not to say that the knowledge and concepts introduced herein