D.J. - San Francisco, CA

W.C. - Hollywood, FL

A.F. - Honolulu, HI

Dear Investor:

    Let me tell you a brief story of how I started with $400 in the markets 38 years ago and became a multimillionaire. Although the word "day trading" has become very popular in the investment media, I will show you a much more profitable way of trading. And you don't have to spend all day in front of a computer screen.

    I've been trading the markets for over 38 years, with my own money. I've never been a broker, fund salesman, or financial planner.

    When the results affect your wealth directly, you better be good, or find a new profession. Therefore, I had no choice but to discover the secrets of profitable trading. And I did!

    My 38 years of trading experience benefits you directly. You don't have to make all the mistakes a novice makes. Believe me, the learning permit for successful trading is expensive... unless you have help.

    People usually think trading is a new phenomenon. But I started day trading 38 years ago. I had $400, and I had to make it grow fast.

    Before that, I had tried about nine months of investing using the advice of a major, national brokerage firm. After losing a portion of my starting capital, I decided I had to learn on my own.

     I knew I had to take charge of my own financial affairs. After all, a broker's goal is to make a commission, whereas my goal was to make my money grow. Those are two vastly different objectives.

    I started reading everything I could on investing, trading, and even something which was still considered voodoo, namely technical analysis. This type of analysis consists of reading charts and interpreting the patterns. At the time, Wall Street firms scoffed at technical analysis. But now, decades later, every Wall Street firm has a large technical analysis department.

    Because my degree was in chemistry, reading charts was very much in tune with what I liked. I understood immediately why the different chart patterns worked. There was a simple logic which I loved.

    You see, the price of an investment depends only on two things: supply versus demand. Everything else is secondary. Good earnings or bad earnings immediately produce a change in the supply/demand relationship. But such earnings are often known by insiders in advance. By measuring the change in supply versus demand we are in a position to know what insiders are doing. Thus we can predict a change in the price trend before the news is made public.

    When I started out, we didn't have computers, not even electronic calculators. All my calculations were done by hand or with a slide rule. I tediously drew my charts of about 40 stocks every day.

    My only source of price information was a ticker tape. Every day I would go down to the brokerage firm and punch out my 40 stocks, and take the paper tape home. I would then translate the information to my manual spreadsheets and charts. Over time, this disciplined approach made me wealthy.

     Traders today have an incredible advantage which many take for granted. You can call up the chart of over 11,000 stocks in a split second. You can have any number of technical indicators drawn onto the chart in another fraction of a second. And the cost of the data each day is negligible.

    There are now hundreds of excellent books on trading and analysis, something that didn't exist when I started.

    And most important, brokerage commissions are now so low, that they hardly have an impact if you go through one of the on-line firms. When I started trading, a 100-share trade would cost several hundred dollars. Now you can trade 5,000 shares for less than $10. That makes a big difference.