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# Motion Into Mass, One Simple Equation

Before starting my career at the Chicago Mercantile Exchange, I did two things and really two things only. I played ice hockey and I went to school where the focus of my studies was Biology and Genetics. I know what you’re thinking: how boring. Well, I actually was and am still fascinated by the study of life so I really enjoyed those days. Around every corner of Biology, Chemistry, Genetics, and so on is another mathematical equation. After diving into this field, I quickly realized that though there where so many equations, the underlying goal of most of these equations was to quantify the forces of “change,” “action,” or “energy.” So, one could argue that all these equations were really different variations of the same thing. For my simple mind, everything came down to Newton’s simple concept of “motion into mass.” Whether I was figuring out the concept of splitting a cell or how an earthquake happens, the underlying equation was quantifying motion into mass.

Short Term Income Trade: S&P, 5/21/13

On Tuesday the 21st, price declined (price collapsed) back to that demand level. The speed of the decline was fast because there was no mass (bank buy orders) to stop the decline until price reached the demand level identified on the chart. As Newton suggested, once an object (price) reaches an equal or greater apposing force, it will stop and change direction. This is exactly what happened at our demand level. Knowing this information and being able to see all this happen in advance on a price chart allows us to buy at demand like the trading opportunity above. This offered us a very low risk, high reward, and high probability short term trading opportunity. Price then rallied because again, there was no mass (Bank sell orders) to stop it which allowed the trade to reach our profit target.

When trading, it is very difficult for most people to focus primarily on where the real and significant willing buyers and sellers are. Many people will include the news or some indicators in their primary analysis. This is because most people are taught to do this, I wasn’t. My focus was science, quantifying motion into mass and that sort of thing. Then, I happened to work at the CME. Once I saw that floor trading was going to go away, I figured out what all this looked like on a price chart.

The information in this piece may seem a bit elementary and repetitious but the purpose of that is to help you understand how the markets work and one way of attaining low risk, high reward, and high probability profits when speculating in markets.

Hope this was helpful, have a great day.

Sam Seiden