There are legions of dedicated Market Profile users who are hopelessly dedicated to this market-driven information tool. Though I dont usually write about Market Profile (MP), for reasons I dont completely understand, MP is a great tool to understand the overall structure during the course of the trading day. To clarify, I am a scalper so I dont utilize MP in the longer term, but there are great applications using the system if your trading horizon is longer than 15 minutes.
What is Market Profile about?
The system has its roots at the Chicago Board of Trade (CBOT) and was initially developed by J. Peter Steidlmayer and was released in various incarnations in 1985 and later years. The purpose of Steidlmayers research was to gauge market value as it develops throughout the course of the trading day. In strict MP theory, various market participants are identified; locals, commercials, members filling orders for other members, and members filling orders for the public. Recent MP theory can be more easily understood in a popular book by James F. Dalton, Eric T. Jones and Robert B. Dalton entitled Mind Over Markets, 2013 edition. While the book is certainly not easy reading, careful study of the
E-mini trading requires a number of different components to be clicking on all cylinders in order for a trader to be profitable. Everything has to be just right to get the maximum amount of profits out of the market. Unfortunately, there are some days when things just won't go your way. The quicker you realize that you shouldn't be trading the better off you will be.
Successful e-mini trading is about following a game plan and exploiting your edges in the market. A trader needs to plan for the good times and the bad times. When bad times appear they need to have a definable list of variables that will keep them out of the market and stop them from irrational trading. Every trader knows there is nothing more dangerous then a vengeful trade.
So what sort of variables should you constantly monitor so that you don't have to worry about over trading and revenge trading?
1. How Many Trades Do You Take?
A trader should know based off of past performance how many trades they should be taking per day. Each style of trading requires a different number but you should be aware of your profitable patterns. Look back at your past results
Starting a career in foreign exchange currency trading, popularly known as forex, can be a daunting task. Learning the currency pairs, the best strategies for trade, and setting up a trading plan can all be quite difficult. I've put together some of the best tips to help you trade effectively.
Prior to picking a currency pair, it is fundamental to do some research on currency pairs. Then pick one to trade. You must avoid attempting to spread you learning experience across all the different pairings involved, but rather focus on understanding one specific pairing until it is mastered. Understand how stable a particular currency pair is. Keep it simple and understand your area of the market well.
When you are just starting your journey into the Forex market, do not try to stand against market trends. Taking a contrarian position against the overall momentum of the market can - occasionally - pay off, but the patience and investment required to make it so are quite beyond the neophyte Forex trader.
The first thing you must do if you want to participate in forex trading is to learn the basics. You didn't learn to ride a bike on the first try. The same applies