Volatility is a market measure that describes price movement as the auction moves in a direction. The greater the volatility, the more price will fluctuate on its way to its destination. The more fluctuation, the greater the opportunity. We've been in a period of extended low volatility. In fact, these are historic lows. It's been very difficult to buy and yet the market has always been going up. At the same time, the typical patterns we look for on the short side have not been … [Read more...]
Why do we preach market profile?
I get asked all the time, "Why Market Profile?" As a trader, I understand that the market is always changing and evolving. You can have a tool work really well for a while, and then all of a sudden it stops working. Over the years, I've had lots of tools in my belt, but I've never encountered anything that was as broadly applicable and dependable as the market profile. >>It's the tool in my belt I keep coming back to after decades of trading. It doesn't matter what the product is. … [Read more...]
How to be prepared for anything
Consider this your brief survival kit. You have to have a philosophy that to prepare for the details of every possible outcome is just about impossible so you need to let go of that. Before you begin the prep to be prepared for anything: simplify your time, possessions, and get your health in order. Here are the seven steps to being prepared for anything: Mindfulness - This is the foundation. Without mindfulness, you won't be able to do any of the other skills. Watching your … [Read more...]
Are you Seeking the Next Trading Holy Grail?
Whether you're a seasoned trader or just getting started, it is always tempting to keep shifting strategies to try and find the trading holy grail. Unfortunately, no trading holy grail exists. You can, however, drastically improve your performance by honing in on strategies that you keep coming back to no matter what. You've got to focus on one or two core ideas and stick with them. Here's how to do that: Assess what is important in your trading life. What are the outcomes you're … [Read more...]
Trade location is the best risk tool
Trade location via the market profile is one of the best tools at your disposal as a trader. Market profile gives a good view of where you are and where you've been in the most recent time frames. Learn how to intrepret this tool. … [Read more...]
Have a plan that sets up good judgement
Having a plan that sets up good judgement is one of the most important pieces a trader needs. … [Read more...]