Summary of James F. Dalton, Eric T. Jones & Robert B. Dalton's Mind Over Markets , livre ebook

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47 pages

English

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Please note: This is a companion version & not the original book.
Sample Book Insights:
#1 One morning, Jim Kelvin, a cattle rancher from Texas, got up at 6am to prepare for the market’s open. He picked up the Wall Street Journal to see what the bank traders and brokerage analysts were saying about the foreign exchange market. He had been watching the Japanese yen closely because he felt the recent depth of coverage in the news would surely reveal some good trade opportunities.
#2 The majority of people who trade futures don’t make money. If you trade with the majority, you will only succeed as well as the average market participant, who doesn’t make money.
#3 The four levels of learning are novice, beginner, advanced beginner, and competent pianist. To become a proficient pianist, you must go beyond the note-by-note struggle and begin to achieve some continuity of melody.
#4 The final stage of skill acquisition is expertise, when the musician feels the melody and the song becomes an expression of his feeling. The mechanical aspects are fully ingrained, leaving the brain to its wonderful powers of creation. Listening to an expert musician is like peering into his thoughts and feeling the weight of his sadness or the exhilaration of his joy.

Sujets

Trading Strategies

Securities

Investments

Economie gestion

Economics

Analysis

Business

Informations

Publié par	Everest Media LLC
Date de parution	30 avril 2022
Nombre de lectures	0
EAN13	9781669394532
Langue	English
Poids de l'ouvrage	1 Mo

Informations légales : prix de location à la page 0,0150€. Cette information est donnée uniquement à titre indicatif conformément à la législation en vigueur.

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Insights on James F. Dalton and Eric T. Jones & Robert B. Dalton's Mind Over Markets
Contents Insights from Chapter 1 Insights from Chapter 2 Insights from Chapter 3 Insights from Chapter 4 Insights from Chapter 5 Insights from Chapter 6 Insights from Chapter 7
Insights from Chapter 1

#1

One morning, Jim Kelvin, a cattle rancher from Texas, got up at 6am to prepare for the market’s open. He picked up the Wall Street Journal to see what the bank traders and brokerage analysts were saying about the foreign exchange market. He had been watching the Japanese yen closely because he felt the recent depth of coverage in the news would surely reveal some good trade opportunities.

#2

The majority of people who trade futures don’t make money. If you trade with the majority, you will only succeed as well as the average market participant, who doesn’t make money.

#3

The four levels of learning are novice, beginner, advanced beginner, and competent pianist. To become a proficient pianist, you must go beyond the note-by-note struggle and begin to achieve some continuity of melody.

#4

The final stage of skill acquisition is expertise, when the musician feels the melody and the song becomes an expression of his feeling. The mechanical aspects are fully ingrained, leaving the brain to its wonderful powers of creation. Listening to an expert musician is like peering into his thoughts and feeling the weight of his sadness or the exhilaration of his joy.
Insights from Chapter 2

#1

The Market Profile is a visual representation of market activity that takes the form of a statistical bell curve. It is a conduit for listening to the market.

#2

The Market Profile is a way of organizing market activity as it unfolds. It is not a system that predicts tops and bottoms or trend continuation. The key to understanding the Market Profile is to correctly read the information.

#3

The Market Profile is a challenging task. Everything you learn about the Market Profile is related and integral to a complete understanding of the market. Each concept is like a piece in an intricate puzzle that should be studied to determine its place in the developing picture.

#4

The cattle market is a good example of how the market's auction process works. If the open is considered below value, price auctions higher in search of sellers. If the open is considered too high by the market's participants, price auctions lower, searching for buyers.

#5

The first half hour of the trading day is designated by a letter. If a certain price is traded during this period, the corresponding letter, or TPO, is marked next to the price. The initial balance is the period of time in which locals attempt to find a range where two-sided trade can take place.

#6

The range is the height of the Profile, from the high to the low. On this day, the range was 9617/32 to 9710/32. The area where 70 percent of the day’s business was conducted was called the value area.

#7

The Market Profile is made up of five elements: the M period, the S period, the P period, the H period, and the R period. The letters A, B, C, and so on vary between quote services and exchanges.

#8

The Market Profile requires more than just regurgitating a list of concepts. You must be able to challenge the rules and look beyond the confines of popular opinion.

#9

The purpose of the futures market is similar to any other market. It exists to facilitate trade, and it does so by auctioning from high to low and low to high, in order to find an area where trade can best be facilitated.

#10

The other timeframe is made up of two separate entities who stand on opposite sides of a game board in the shape of an exchange pit. They both have their fingers on big buttons: one says sell and the other buy. To successfully trade the futures market, you must understand what the other timeframe is doing and position yourself with them.

#11

When you blindly follow the majority, you will usually be going the wrong way. The tendency to be a follower is not an easy thing to realize or admit. When you rely solely on yourself, you alone take pride in reaping the rewards of success, but there is no one else to blame for defeat.

#12

The Market Profile as a whole tends to fall into readable patterns in the day timeframe, determined by the involvement of the other timeframe participant. These patterns can increase your success as a day trader as well as provide information regarding what the market is trying to do in the longer term.

#13

Normal days are created when a news announcement early in the trading session triggers a strong other timeframe reaction, which drives price quickly in one direction. For the remainder of the day, there is little strong directional conviction and price balances between the extremes.

#14

The primary characteristic of a Normal day is the wide initial balance not being upset throughout the day. In Treasury bonds in Figure 2. 4, the initial balance was established in A and B periods from 964/32 to 9714/32, well over a point wide.

#15

A Normal variation of a Normal day is characterized by market activity early in the trading session that is less dynamic than that of a Normal day. As the day progresses, however, the other timeframe enters the market and substantially extends the range.

#16

Normal Variations do not have as wide of an initial balance as Normal days. The initial balance is upset on one side by other timeframe range extension, usually early in the day. In Figure 2. 5, the other timeframe seller extended the range down in D period, tipping over the base to the downside.

#17

A Trend day is a day in which the open is the upper or lower extreme in the large majority of cases. During a buying Trend day, each time period will auction to a higher price level without auctioning below the previous time period's lows. Conversely, during a selling Trend day, each additional time period will equal or extend below previous periods without auctioning above the previous period's highs.

#18

The second type of Trend day, the Double-Distribution Trend day, is relatively inactive during the first few hours of the trading session. Later in the session, a change in events causes the other timeframe to perceive price to be unfair at current price levels, and they enter the market aggressively.

#19

A very small initial balance is the first indication of a potential Double-Distribution Trend day. The more narrow the base, the easier it is to overwhelm it and auction quickly to a new level. In Figure 2. 7, the other timeframe seller extends the range down in F and G periods.

#20

When a Neutral day occurs, it means that the other timeframe buyer and seller are not far apart in their view of value. When they have similar views of value, the market balances, auctioning back and forth between them.

#21

A Neutral day is when the base width is between a Trend and Normal day. It is not so small that it is easily upset, and not so large that it holds the day's extremes. The salient feature on a Neutral day is the fact that both the other timeframe buyer and seller are active, as indicated by range extension on both sides of the initial balance.

#22

The Market Profile is a chart that displays the type of day on the horizontal axis and the level of directional conviction on the vertical axis. The result is a gradually ascending line from lowest conviction to highest, from a Nontrend day to a Trend day.
Insights from Chapter 3

#1

Tunnel vision is an easy trap to fall into when learning new information. It is not uncommon to hear beginning Market Profile traders comment, The Profile doesn't work.

#2

The big picture is made up of three broad categories of information: market structure, trading logic, and time. As a novice, you learned the basics of market structure, the most tangible information offered by the Market Profile in its unique bell curve graphic.

#3

The third and most difficult category of rules is trading logic. It is the result of experience, but it is more than just careful observation and practice. It is an understanding of why the market behaves the way it does.

#4

The Profile is much like an intricate puzzle. Its structure reveals more and more as the day nears completion. But, like the child with a picture of the finished puzzle, traders with an understanding of the big picture are generally the first to put together the pieces of the market.