Elevate your trading strategy with actionable market insights from an industry pioneer
In Markets & Momentum: How Profiling Gives Traders an Advantage, James F. Dalton and co-author Robert B. Dalton dramatically expand on their revolutionary first book, Markets in Profile. Summarizing a lifetime of experience - from formative memberships on the CBOE and CBOT to his role as UBS Director of Hedge Fund Research - Jim challenges traders to recognize that market:understanding must be balanced with self:understanding. Jim’s deep market savvy is complimented by Rob’s engaging prose that adds a wealth of insight about the powerful influence of unexamined emotions, impulses, and habits on your trading success. This information is scientifically organized via the Market Profile, which is simply a contextual organization of time, price, and volume - the core components of any financial transaction.
Markets & Momentum offers:
- Deep dives into issues that lead more than 90% of day traders to lose money, including fading trend days, FOMO, doubling down on losing trades, and failing to let profits run.
- Strategies for minimizing the influence of news hype and analysis overload in order to remain focused on the only information that matters.
- Techniques for understanding your own emotional and intuitive reactions, and learning to avoid making impulsive decisions.
This book is ideal for day and short-term traders, and for longer-term investors seeking to improve trade entries and exits. Jim Dalton’s trading insights are supported by six decades of learning directly from the markets, as well as from his wide base of educational clients.
Markets & Momentum is a must-read for traders looking for guidance on developing the insights and skills necessary for conquering the short-term market.
Table of Contents
Preface ix
Introduction xi
Part I Foundation 1
Chapter One The Secrets of Success 3
Chapter Two Nuance 7
Chapter Three Chunking 15
Chapter Four Is Our Trading Approach Different? 21
Chapter Five Market Understanding Only Goes So Far 27
Chapter Six You Can’t Always Forget What You Want 33
Chapter Seven Unlearning 37
Part II Fundamentals 45
Chapter EightDeveloping Depth 47
Chapter Nine Time and Short-term Trading 53
Chapter Ten Reading the Signs and Finding Value 57
Chapter Eleven Building on the Foundation 69
Chapter Twelve Timeframes and the Auction Process 97
Chapter Thirteen Take a Minute to Breathe 105
Chapter Fourteen Trend Days 109
Chapter Fifteen Emotions in Motion 127
Chapter Sixteen Anchors, References, and Subconscious Bias 131
Chapter Seventeen Prioritizing References 137
Chapter Eighteen This Time Is Different 143
Chapter Nineteen Emotional Intelligence: Navigating Self and Market 155
Chapter Twenty Markets in Transition 163
Chapter Twenty-one Explicit/implicit Learning 171
Chapter Twenty-two Evolving Intuition 177
Chapter Twenty-three Bringing It All Together 183
Chapter Twenty-four Markets Handle Current Business First 189
Chapter Twenty-five Making Decisions (in the Heat of the Moment) 199
Chapter Twenty-six Beyond Price: Unveiling Market Dynamics 207
Chapter Twenty-seven The Opening Engagement Starts Here 217
Chapter Twenty-eight The Power of a Well-kept Journal 233
Chapter Twenty-nine That’s a Wrap 241
Appendix A Reference Definitions 247
Appendix B Reading List 251
Appendix C Jim Dalton Trading 257
Acknowledgments 261
About the Authors 263
