|  JUL 1988

The Adam theory of markets by Lesley B. Orr

The Adam theory of markets by Lesley B. Orr Author: J. Welles Wilder Jr. Publisher: Cavida Ltd., N.C. The Adam Theory of Markets by J. Welles Wilder Jr. is a book about ""making profits trading...any freely traded markets anywhere in the world."" It starts from the premise, repeated many times, that ""There is really a lot less to trading than meets the eye."" It enumerates and expounds on a group of trading rules, presents a simplistic graphic method of predicting future price activity, walks through the anatomies of three trades and even tells a fairy tale and some relevant anecdotes. The Adam Theory discusses and develops 10 basic trading rules. These rules are not new. They are the tried and true fundamentals of trading. In the second chapter the author states, ""When you get through reading this book, you will find a lot of things that you learned in this book, you will think you always knew! The reason you will think you always knew them is because they are so simple."" The concepts reviewed in the book, however, aren't merely simple and they have been said many times in the past. Some of the points, for example, directly parallel similar points stressed in the article ""Why Losses Occur"" by Jesse H. Thompson in volume one, chapter five of the Technical Analysis of Stocks & Commodities compilation of back issues. They also mirror the 12 rules and five observations discussed by Barry Lind in the pamphlet ""Method Trading"" which is given free to customers of his discount commodity brokerage. Nonetheless, though they are often heard, the fundamentals certainly bear repeating.

by Lesley B. Orr