Markets in Profile: Profiting from the Auction Process / Edition 1by James F. Dalton, Robert B. Dalton, Eric T. Jones
Pub. Date: 02/09/2007
Fifteen years since publishing Mind over Marketstheir seminal work on markets and investor behaviorDalton, Jones, and Dalton have greatly expanded their scope, delving deeply into the ways in which the auction process reveals the actions of all investor time frames. They believe that by understanding timeframe behavior through developing market… See more details below
Fifteen years since publishing Mind over Marketstheir seminal work on markets and investor behaviorDalton, Jones, and Dalton have greatly expanded their scope, delving deeply into the ways in which the auction process reveals the actions of all investor time frames. They believe that by understanding timeframe behavior through developing market structure, it is possible to identify asymmetric opportunities that can ameliorate risk and help ensure financial dominance.
This book is a bold call to action for all investorsfrom day traders through the longest-term individual investors, to traditional asset managers and hedge funds that control trillions of dollars. It challenges serious traders, investors, and researchers to reach beyond price-based market analysis and traditional fundamental research for a more contextual approach . . . an approach that translates the principles of behavioral finance into actionable reality by examining the relationship between price, time, and volume.
The authors take a profoundly different approach toward the traditional separation between day, short-, intermediate-, and long-term investors, pointing out that even the longest-term professional investor is a day trader on the day they enter, exit, trim, or add to a position. Lead author Jim Dalton and coauthor Eric Joneshaving been heavily involved in selecting hedge funds and traditional managers for a leading Wall Street financial services firmcan attest to the importance of each basis point of performance in a world where one quarter's results can trigger financial triumph or a quick exodus.
In May of 2006, two months before the book was to be delivered to the publisher, the U.S. stock market broke eight percent in a matter of dayssending investors and the media into a tailspin. The authors saw this as an opportunity to demonstrate their theories in real-time, as opposed to cherry-picking historical events that supported their claims. The event unfolds in Chapter 6 and the authors offer sound advice and strategies on how to navigate market activity yet to unfold. The results are summarized in the Appendix, which was written after the book was submitted to the publisher. You be the judge.
Filled with in-depth insight and expert advice, Markets in Profile teaches you the market's basic auction process, redefines how to view and conduct research, separates the markets into different time frames, illustrates the importance of inventory imbalances, and, in sum, demystifies market behavior by showing you how to organize the market's auction process in a scientific, systematic way.
Table of Contents
CHAPTER 1 The Only Constant.
The Creation of ERISA.
The Rise and Fall of Relative Performance.
The Fall of the Great Bull.
The Rise of Absolute Return.
Succeeding in an Absolute Return Market Environment.
Pure, Unbaised Information.
People Change Markets, Markets Change People.
CHAPTER 2 Information.
Rational or Irrational?
Market Profile Fundamentals.
Demystifying Market Behavior.
CHAPTER 3 Timeframes.
Breaking Down Market Timeframes.
Your Timeframe Is your Strategy Cornerstone.
CHAPTER 4 Auctions and Indicators.
The Search for Value.
Key Market-Generated Indicators.
Perfecting the Art of Visualization.
CHAPTER 5 Long-Term Auctions.
Auctions in Action.
The Compound-Auction Process.
The EBB and Flow of Balance.
Where Do Trends End and Brackets Begin?
Clarity in the Maelstrom.
The Big Picture.
Asymmetric Opportunities and Risk.
Long-Term Strategy Development.
Assembling the Big Picture: Context within Context.
CHAPTER 6 Intermediate-Term Auctions.
Convergence and the Bracketing Process.
Defining the Intermediate Term.
The Transition from Bracket to Trends.
The Transition from Trend to Bracket.
The Convergence of Intellect and Emotion.
Accelerate the Learning Process.
Prelude to a Sea Change.
Hear the Bells A-Ringing.
The Quest to Do Better than "Normal."
Oh, the Difference a Few Points Makes.
CHAPTER 7 Short-Term Trading.
Analyzing Short-Term Markets.
Common Mind Traps.
When and Where to Look for Short-Term Trades.
Opportunities Around Intermediate-Term Brackets.
Your Own Worst Enemy: Your Brain.
Seeking the "Exceptionally Tasty Patterns."
All Prices and Opportunities Are Not Equal.
Ongoing Forensic Investigation.
Looking for the All-Important Reference Points.
Never Be a Laggard.
A Golden Opportunity.
Fade the Extremes, Go with Breakouts.
"The Expert Reasons Contextually."
CHAPTER 8 Day Trading Is for Everyone.
What’s a Day Trader to Do?
What You Don’t Do May Be More Important than What You Do.
The Real World in Action.
Lack of Conviction.
Flight to Safety.
Correction of Inventory Imbalances.
Trend Traders’ Trap.
The Market Is Open.
Day Trader’s Checklist.
Practice, Practice, Practice.
CHAPTER 9 Profiting from Market-Generated Information.
The New Paradigm.
Appendix A: Market Update.
About the Authors.
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