【Adam Theory】 Chapter 1: What is Adam Theory?

  • 2025-07-12

Chapter 1: What is Adam Theory?  

 

Adam Theory is about profiting from market operations... the principles of profiting in any free market around the world. Adam Theory guides you to observe the market in a unique way and instructs you to employ a distinctive method for market operations. It is the purest, simplest, and easiest method to profit in the market... relying solely on the information revealed by the market itself.  

 

Adam Theory’s function does not stop there. It also informs traders about the most probable future direction of the market. Using Adam Theory’s predictive techniques, traders can estimate and clearly see the path ahead. Afterward, traders can ask themselves: "Do I want to enter the market?" If the answer is yes, they enter immediately.  

 

Adam Theory can be applied to any time frame. That is, it can be used on monthly charts, weekly charts, daily charts, and intraday movements. It is a theory based on visual reactions—simple candlestick charts make it clear without the need for mathematics.  

 

Now, using candlestick charts, return to the question: "Do you want to trade?" If the answer is yes, the trader enters the market. The next day, the trader reapplies Adam Theory to determine the market’s most likely path. They then ask, "Do I still want to trade?" Eventually, the answer will be "no," and Adam Theory will guide them to exit.  

 

In performing these tasks, Adam Theory observes only the information revealed by the market itself... never being arbitrary. It is the simplest and purest concept... yet most traders overlook it.  

 

Sloman stated:  

"The question Adam Theory concerns itself with is: What are the fundamental principles of profiting in the market?  

 

Or, in other words, how does Adam Theory complete the following sentence: To succeed in the market, we must------?  

Are there certain universal principles that traders, whether intentionally or unintentionally, apply to win in the market?"  

 

"Note that theories and developments about how the market operates are different from profiting in the market. Adam Theory is not primarily about discussing the market or how it functions, but rather the secret to success in the market—this is different.  

 

The greater the secret, the simpler it is—this is a reasonable statement. This is why Adam Theory is often neglected: because it is too simple. The human mind has an extreme preference for complexity and difficulty; it enjoys challenging them. As a result, the mind often fails to grasp simple things: 'Is this a great truth? How can it be so absurdly simple?'  

 

"Adam Theory deals with the fundamental truth of things, discussing only what happens. It may not seem novel or complex, but that is its function. Note that Adam Theory does not discuss what should happen or what is impressive. It discusses only one thing—what actually, factually occurs. Everything is simple and not at all hard to understand.  

 

When thinking about Adam Theory, the only thing that truly matters is—what is happening? Anything else may be interesting, but it is not important."

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