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      How to Make Money, Outsmart the Market, & Join the Smart Money Circle

       Adam Sarhan

      Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

      Published simultaneously in Canada.

      No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per‐copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750‐8400, fax (978) 750‐4470, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748‐6011, fax (201) 748‐6008, or online at http://www.wiley.com/go/permission.

      Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Further, readers should be aware that websites listed in this work may have changed or disappeared between when this work was written and when it is read. Neither the publisher nor authors shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

      For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762‐2974, outside the United States at (317) 572‐3993 or fax (317) 572‐4002.

      Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic formats. For more information about Wiley products, visit our web site at www.wiley.com.

       Library of Congress Cataloging‐in‐Publication Data is Available:

      ISBN 9781119282044 (Hardback)

      ISBN 9781119282129 (ePDF)

      ISBN 9781119282112 (ePub)

      Cover Design: Wiley

      Cover Images: © artmakerbit/Shutterstock, chart ‐ Wiley

       This book is dedicated to everybody I love.Including you.

      I want to thank Leo Melamed, the man who literally created stock market futures, currency futures, and treasury futures after running his “idea” by the legendary economist Milton Friedman. Leo's story is remarkable, and his knowledge, experience, and wisdom is second to none. Leo, thank you for your friendship, guidance, and support during my “journey.” Leo sent me this excerpt from his wonderful book, Man of the Futures, and he shares timeless wisdom about psychology and futures trading. The same underlying principles apply to trading and speculating in just about any liquid and freely traded public market in the world. The lessons outlined in this book are designed to help you thrive in all market environments.

       “Do you think I can make money speculating in futures?”

      I have been asked this question, in one form or another, countless times. Unfortunately, it is a question without an easy answer. I have seen seemingly well‐qualified people fail in their attempts at futures trading and investments. I have seen the least likely type succeed. Consequently, I have learned never to make a definite evaluation of a person's prospects until after I have had an adequate opportunity to really get to know the person and observe his or her actions and reactions to market situations.

      In futures trading, one's personality and emotions are stripped of customary buffers and aids that offer comfort and assistance in most other stresses of life. Moreover, in trading, emotional problems are enormously magnified because you are dealing with money—your money! Here, your personality, your emotions, your character are tested as nowhere else. The normal tranquilizers or accepted diversions which we consciously or

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