c02 JWBT016-Busby September 30, 2008 13:33 Printer: TBD
CHAPTER 2
Time Is Money
I
n the 1950s, kids didn’t sit all day in front of a computer screen or a
television set like so many do today. We spent our time outdoors play-
ing ball, riding bikes, or building tree houses. On the corner, just a few
steps down from my house, was a large empty lot where the neighborhood
boys often gathered to play a game of baseball. It was a ragtag team, and
I was one of the younger players. I dreamed of getting a good hit, run-
ning the bases, and gaining the respect of my elders. I remember standing
at home plate, gripping the bat tightly in my sweaty hands, and waiting
for the pitch. Even then, I was well aware of what I needed to do in or-
der to score. I had to concentrate, keep my eyes on the ball, and swing
at just the right second. Swing too early or too late and the chance for
glory would be lost. Even though I rarely succeeded in my quest, I under-
stood the importance of keeping the ball in focus and swinging at just the
right time. For a ball player, timing is not everything, but it is one of the
essential elements needed to get a good, solid hit. Timing is also important
to trading.
When I placed my first trade nearly three decades ago, trading was
also a far different game than it is today. I did not imagine then that
in the twenty-first century I would be clicking a computer mouse and
making money trading a European or Asian financial product while my
neighbors were sleeping. I did not foresee the diverse new products like
the equity indexes or the exchange-traded funds (ETFs). In so many
ways and in such a short time, the financial markets have evolved and
changed.