Your book is not Young Adult because you are a young adult, it depends on the style of writing and your audience.
It sounds good but It definitely needs some cleaning up. One thing I do is go through some of my favorite books, in the same genre that Im writing in, and I observe how they word things.
Heres a few examples of how I would clean this one up.
Something didn’t make sense . . . the dream . . . It wasn't like I was peering in, I was able to participate.
They had a home ready for me. I was able to talk to Kelly, and Kelly was powerful! If this room was filled with the most powerful people, shouldn’t she be here then?
The only person in the dream that seemed to be aware of me was Kelly. The mystic in the room used the same unnatural color of blue as her.
I started to panic. “Where is Kelly?”
Tahk looked nervous, he was starting down at the floor when he said, “there’s something you don’t know--“
“Oh really?” I snapped, abruptly cutting him off in a most sarcastic tone.
He continued on as if I hadn’t even spoken. “What your experiencing is known as a lucid dream. You can control many aspects of it . . . so when you are dreaming, you are actually peering into this world, but you also controlling it and making the dream what you want it to be.” As he finished I noticed his hands were shaking. He looked so nervous I wondered if he was going to vomit.
“What are you not telling me?” I demanded.
Anyway thats just an example of how I might clean that paragraph up. My favorite way to write is to first get the whole story out and then go back and do all the cleaning up. Good Work though : ) It sounds like it could be a very interesting story.

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