The Importance of Auction Theory

Have you ever wondered how the most successful traders get to be so profitable? Dr Clifford Vance Cast explains what auction theory is, and how it comes into play while day trading. To schedule your 2 free visits call us…

The Importance of Auction Theory

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Have you ever wondered how the most successful traders get to be so profitable? Dr Clifford Vance Cast explains what auction theory is, and how it comes into play while day trading.

To schedule your 2 free visits call us at 888-646-8787, 888-788-1788 or visit us at deltatradinggroup.com

We have consulted with Dr Clifford Vance Cast, SP500 E-mini Trading Group, Delta Trading Group, and the Micro E-miniTrading Group in the making of this officially sanctioned video on Futures Trading.

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TRANSCRIPT:

Here at Delta Trading Group, we teach something called Auction Theory. Now the
financial market is a giant auction and whenever you understand auctions, you’ll
be able to turn that market into your own personal ATM.
When you’re looking at a financial market, you’re looking at an auction. You
have people asking for a certain price, and you have people bidding for a
certain price; and when they come to a meeting of the minds, a sale is made. So
let’s think about a regular auction where the price just goes up. Let’s say
you’re going to an auction, and you’re going to purchase a car. The car comes up on
the auction block and the auctioneer starts off the bidding. And he’s really
the person who’s asking for a price and as he asks for maybe, you know “who’ll
give me $2,000 on this fine automobile?” Somebody will raise their paddle or raise
their hand and they’ll bid that $2,000; and then when that $2,000 is met, the
auctioneer will ask for a little bit more money and people raise their hands
and they’ll bid more money. Now two things happen before that gavel drops of
that auctioneer. Two things happen- either you get a buying frenzy, in which case the
price is being pumped up, pumped up, and pumped up. And then all of a sudden,
everyone stops bidding and the and the actual product is dumped on the last
bidder. Or as the price is rising, people will start showing signs of indecision.
They’ll start folding their arms, they’ll quit making eye contact with the
auctioneer, maybe their wife is poking him in the ribs with her elbow as to say
“Honey quit, quit, quit spending more money on this thing, you know the
price is high enough, we can’t afford it.” Whatever the case, there are all of these
signs of indecision and if you are the auctioneer looking down from your podium,
you would see the faces and all of these signs of indecision before you start
trying to really sell the product and get the most money out of it as
you possibly can. Finally, once everybody shows these signs of indecision,
the auction is closed; the gavel drops and the item is sold. In the financial
markets, we make money whether the price is going up or the price is going down.
And as the price is going up the price is being asked for and bid on,
and you have this meeting of the minds. However, as the price keeps going up,
and up, and up, you’ll see that people start showing signs of indecision, or the charts will
start showing you signs of indecision. And then once the, once the market has
decided that the price is finished going up, then the price maybe start coming
down a little bit. Okay? And going down the other direction, and it’ll keep
falling, and falling, and falling until the market says, “Hey we’re undecided
again. We’re gonna show some signs of indecision and then we’re gonna turn
around and go back up again so the market goes up and down, up and down. It
is our goal to recognize the end of any little trend, whether it’s up or whether
it’s down. We want to recognize the end of that trend, and we do so by
recognizing the indecision signals in the market place.
We hope you enjoyed this video that was an excerpt directly out of our Academy.
To find out if you qualify to join as a member, call 888-646-8787 or go to deltatradinggroup.com

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