Markets in Profile: Profiting from the Auction Process

Gran llibre per aprendre sobre market profile

Humans always need to compare everything, when nothing needs to be compared. Both books are excellent and if you want to become a profitable trader then I would recommend both books. They are two very different books. I bought Mind Over Markets four months ago and have been through it twice so far. I read and study it every day along with watching the market live with the profile twice per day London/US morning and Asian session afternoon so I can immerse myself with the profile. I just purchased Markets in Profile because I am learning so much from Mind Over Markets and have decided that the profile is the only thing that will work for me. The profile is not easy to learn so I figured that even if I got one additional insight or understanding from Markets in Profile that it would be worth the $50. I would spend. I have spent so much money on so many books and even mentors in the past three years to no avail. I would recommend getting Mind Over Markets first and go over it and study it until you have a good grasp of the profile and what it takes to learn it and then if you decide that you are willing to put in the time then I would consider adding Markets in Profile as it gives so much more in understanding the reasoning behind so many things. I study trading full time and after four months still have a ways to go to really learn the profile so it's definitely not for the faint of heart. I feel like I wasted the first 2 1/2 years and wish that I would have known about the profile a long time ago because I believe I would have been trading by now. At least I now know what doesn't work for me and am happy to have found Dalton's books.

At only 200 pages, Markets in Profile isn't exactly a hefty tome. Don't let its length deceive you, though. This is an intellectual book which incorporates a fairly wide array of topics, including some common academic theories, in to the mix. While there are loads of graphics included to provide visual examples in support of the text, which serves to cut down the actual amount of textual content, do not expect to breeze through this book in an afternoon sitting. It delves in to the heart of trading in a way that will force you to examine how you approach the markets. One of the things that most, if not all of us forget when we're analyzing and trading the markets is exactly what's going on. We see the movement of prices and fail to remember what is really happening to create that price movement. That's the auction process. To quote the authors, "... price and volume move over time to facilitate trade in the pursuit of value." A great deal of effort is expended by market participants to determine value. Fundamental stock market analysts spend hour upon hour trying to come up with a figure that represents the worth of a company based on earnings, book value, and other factors. That is all fine and good, but it is the market, in the end, which defines value. And it does so on a running basis. The problem we market participants have is that we focus too much on price, which the authors indicate is merely the advertising side of the auction process. They demonstrate how price is just a way for the market to seek value. There's an important distinction here. Price is not value. It is just a way for the market to find value, which is defined as the price area where volume is generated because buyers and sellers meet in agreement. To help us understand that process, the authors use some easily understood examples to define the basic mechanisms of the financial markets. They are the same as in other markets, after all. The process might operate faster and on a broader scale, but otherwise it is the same. Sellers are trying to recieve the highest possible value in the sales price, while buyers are trying to minimize the price they pay in relation to the value the expect to recieve. When there is disagreement between the two, little trading takes place. When they agree, lots of trading happens. It doesn't matter if the product is automobiles, banannas, or stocks. About the first half of Markets in Profile is laying the kind of mental groundwork needed for really getting in to the analytic method known as Market Profile. Market Profile is the technique the authors use to identify the levels where the market has found value and when the market is in search of value. It is an approach first developed by Peter Steidlmayer (see Steidlmayer on Markets) at the Chicago Board of Trade (CBOT) for the futures market, and which they spent considerable time defining and outlining in their previous book, Mind Over Markets. On the surface, Market Profile appears to be just another way to present price history in graphic form. The authors, however, demonstrate how the Market Profile distribution patterns put "market-generated information" to excellent use in identifying value and the market's pursuit of it. Using numerous examples, the authors explain in detail the ways Market Profile can be used to identify what they refer to as "asymmetric opportunities". These are market set-ups where not only do the odds more favor a move in one particular direction, but the situation is such that a move in that direction is likely to be substantially larger than were the market to go the other way. Think of it as you would a trading system that has a win rate incess of 50% and a high average winner to average loser ratio. That's a pretty good combination! This is a book that can make a huge difference in the way you look at the markets, and by extention, the way you trade, but only if you let it. The authors challenge quite a few elements of trading. Some readers may put up walls where that happens. The open-minded reader, though, will find themself thinking along completely new paths and gaining massive insights in to the way they see price action. (For the record, years ago, when I was a professional analyst focusing on the futures market, I used Market Profile extensively and with considerable success. In the intervening years I fell away from it when I shifted market focus, but I'm now making a move back.)

not worth the time to read.

Today i received the book only to be surprised: outer cover was "Markets in Profile" but inside it was the contents of "Making Rain: The secrets of building lifelong client loyalty" by Andrew Sobel". Book was from Repro Knowledge cast Ltd, Thane