The Red-Light, Green-Light System

by wadecook

The Red-Light, Green-Light System

By Wade B. Cook

Part One


You are about to read about one of the most profound discoveries I’ve ever made. This knowledge has made me a better investor and trader. The consequences of using this life-changing methodology is the foundation of extra millions of dollars of profits.

You will see how much it means to your own trades shortly. One thing to note is that stock brokers, TV news people, and financial pundits have half of the story. The missing half has cost people millions, not just in losses, but in lost profits. You’ll see the missing half as you study this.

I’ve spent a lot of time in my seminars talking about and showing people how to increase their powers of observation and apply that to increasing their profits. For example, if you see patterns, say a connection between a company’s stock dipping or rising at certain times as the stock goes through a split, you take advantage of this pattern. Can we make better trades? Can we get in at more opportune times and get out with more cash? These entrance and exit points are very important—indeed I might say crucial to increased wealth building.

The obvious is not always so obvious. We need to get better at making connections. I look for connections in the stock market all the time and then try to figure out how to capitalize on those observations. I’ve recently discovered something so pervasive, so recognizable, that once you know and “get it,” it will literally shake up a lot of things you do. It will help you avoid mistakes. It will help you trade better—better execution and more cash profits.

What I am about to explain is a price movement phenomenon based on the market’s reaction to events on the corporate calendar. Many people have observed parts of this phenomenon. Others see one angle of it but don’t see the connection. Still others see the same patterns and time periods but don’t understand the “why” behind the stock movements. If you don’t truly understand this cause and effect, it’s hard to build faith in the process—to formulate your “law” and put that law to work for you.

Your stockbroker or financial planner may claim to have known about this concept. If so, chew that person out for not telling you. Anyway, I doubt they know the entirety of this process. I’ve not talked to one person yet who understands all of this before I explained it—no broker, surely no news writer or journalist, and no other author.

You are about to read probably the single most important thing about trading in the stock market you have ever read or ever will read. I call it “Red-Light, Green- Light.” This pearl of business wisdom was found through years of struggle, and you minimize this process at your trading peril. Watch and be wise.

© 2015 Wade B. Cook. All Rights Reserved. Visit

See you tomorrow with Part Two.

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