【Adam Theory】Chapter 2: The Fable

  • 2025-07-12

Right now, you must be eager to dive in and explore the essence of Adam Theory. You can’t wait to uncover "the path the market is most likely to take in the future." Yes, we will soon address this question and conclude the book in just twenty or thirty pages. But if we do so, the number of readers who can truly grasp, understand, appreciate its profundity—and most importantly, benefit from it—will likely be few.  

 

Sloman spent a year focusing entirely on researching and developing Adam Theory. After reading this book, you will undoubtedly realize that many of its principles are things you’ve known all along! The reason you feel this way is that these principles are exceedingly simple. This may sound paradoxical. But unless you truly comprehend them, you don’t really know them. The only way to understand what you think you already know (but actually don’t) is to learn why you didn’t recognize them in the first place.  

 

This is why you absolutely must learn Adam Theory from the ground up—don’t try to skip ahead. The book will elaborate meticulously and exhaustively. You must follow it step by step to appreciate the logic, purity, and beauty of this concept. Even then, many readers still won’t truly grasp it, because unless you put it into practice, you don’t really understand it… meaning you must apply it in the market.  

 

Now, please focus intently as we delve into Sloman’s modern fable.  

 

"Once upon a time, there was a fascinating place called Marketland, where people played a game called ‘The Market’ from morning till night. The game worked like this: each day, it would either rise or fall, and the players would bet on the outcome. It was a very simple game.  

 

But there was a complicating factor—mainly because every player in Marketland had their own opinion about where the market was headed. And it wasn’t just opinions. The players had also devised a multitude of systems, methods, evidence, and analyses to prove their opinions correct. They had things like the Dacdil Sequence, Pudong Waves, Jandon Lines, and Zieg Harmonics. They had the secret strategies passed down by Obert, Cannion, and the old masters. They also had tools like inventory levels, earnings reports, money flow, astrological charts, and four-dimensional indicators. Everything was utterly mesmerizing. Indeed, the players had many awe-inspiring tools at their disposal.  

 

The problem, however, was that sometimes their methods predicted the market would move in one direction, while in reality, it moved in the exact opposite. Strangely, this never seemed to wake anyone up. They would spend endless hours debating why the market had behaved in such an ‘illogical’ manner. But they usually agreed it was just a temporary deviation—their methods and analyses remained as sound as ever.  

 

One afternoon, a player named Mr. Certainty encountered something strange, and from that moment on, he was a changed man. Mr. Certainty had spent years deeply studying the so-called Azhoff Numbers and had become the recognized expert in Marketland on the subject. Now, the Azhoff Numbers indicated the market was bound to rise, so Mr. Certainty bought a sizable number of stocks, building a substantial long position.  

 

Unfortunately, shortly after his purchase, the market began to fall. This didn’t overly concern Mr. Certainty, as he was utterly convinced the market would eventually rise. But the market paid no heed to his convictions (such is fate) and kept falling, again and again. Mr. Certainty grew anxious and despondent (understandably, as we’ve all been there). Yet he remained certain things would soon turn around—the market would reverse and go where it was supposed to go.  

 

Since all fables must have a child, this one is no exception. It turns out Mr. Certainty had a beautiful five-year-old daughter named Herenow (‘Rightnow’). As he sighed deeply over his miserable fate, Herenow walked in. Sensing something was amiss, she asked what was wrong.  

 

‘Oh, nothing, sweetheart. It’s something you wouldn’t understand. Simply put, the market was supposed to go up, but it didn’t.’  

‘Daddy, is this the market you’re talking about? This line on the screen?’  

‘Yes.’  

Little Herenow walked over and stared intently at the squiggly line on the screen. After a while, she said:  

‘Hey, Daddy, I don’t know anything about the market, but this line looks like it’s only going down.’  

‘Sweetheart, that’s where you’re missing the point. See, the Azhoff Numbers say the market must rise to here.’  

‘I know, Daddy, but right now it looks like it’s going down.’  

‘Honey, it’s not just that. The Merlin Wave Frequency also insists the market has to rise to here.’  

‘I know, but right now it looks like it’s going down.’  

‘You don’t understand, sweetheart. When the Azhoff Numbers and the Merlin Wave Frequency align, the market has no choice but to go that way.’  

Herenow looked puzzled. She stepped closer and studied the screen again.  

‘I don’t get any of what you’re saying, Daddy. I don’t understand the market. But right now, it looks like it’s going down. See?’  

Mr. Certainty was speechless. He stared at his daughter.  

‘Herenow, say that again?’  

‘Daddy, right now, the market looks like it’s going down. Am I wrong?’  

 

At that moment, a flash of insight struck Mr. Certainty. All those years of painstaking research into the Azhoff Numbers, the Merlin Wave Frequency, and everything else came rushing back. He looked at his daughter, picked up the phone, and liquidated all his long positions. Not only that—he went heavily short.  

 

Now, Mr. Certainty was no longer the same man. Before, he spent all his time studying the Azhoff Numbers, the Merlin Wave Frequency, and other theories. Now, he spent his free time playing golf and made plenty of time for his family. His friends thought he’d gone strange because he’d lost all interest in those mesmerizing systems, methods, and statistics related to the market.  

But Mr. Certainty didn’t care at all—because he was making money hand over fist, more than he’d ever imagined."

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