Don´t be fooled by the title of this book. "Mind over Markets" has nothing to do with psychology and has everything to do with Market Profile and the Auction Process.
Why is "Mind over Markets" important to me?
Most traders start their carreer by getting to know Technical Analysis as I did, and to me that is a mistake. A trader should start from the basics and the Auction Process is it. Technical Analysis should be the second step.
This book changed the way I saw the markets. Since I started my studies learning indicators, candles/bars, support and resistances I skipped the step to actually understand what being a trader is, and it is no different than an auto-dealer or a salesman. I underestimated the main rule of the market: Supply and Demand. After reading this book, the concepts of trading came closer to real life examples and it was easier to understand the "whys" of Technical Analysis.
To understand that every market is a series of auctions, where buyers bid and sellers ask. When they agree upon the price, a business take place. To understand this process is very important. The difference between Price, Value, Volume and Time has a direct link to Supply and Demand. These are the rules of the game, this is what moves the market. To be a trader means to understand these rules and use them in your favor. Mind over Markets will explain each aspect of Marker Profile, how to understand and read the information the profile provides to finish the puzzle. This will give you a better chance of jumping in the best trades.
What you should expect from it
The book will explain what Market Profile is from the start, so you no not need to know anything prior to reading it. The book cover the basics and as it progress the most important rules and clues are explained. WARNING: Market Profile is not a trading strategy and if that is what you are looking for, you will be disappointed.
Always keep in mind that Market Profile is just a graphical representation of the ongoing auctions, it does not predicts the future. It will help you understand the clues left behind and increase your odds.
If you already have a good strategy working for you, this book can help you filter you trades based on the location in the profile. Places were you will have a better risk and reward ratio, increasing you overall results.
Take your time to read the book and really understand what it says. I have read it a couple of times to understand all the important stuff and learn how to use each topic.
Most valuables concepts to me
- The difference between Price and Value
- Understand how value is created
- Location a trade takes place is important
- Open and Open range in relation to the previous day
- Type of day patterns and what they mean in terms of confidence
- Who is in control of the market
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Mind Over Markets: Power Trading with Market Generated Information, Updated Edition Hardcover – July 1, 2013
by James F. Dalton (Author), Eric T. Jones (Author), Robert B. Dalton (Author)
Publisher: Wiley; 2 edition (July 1, 2013)