Its Never Been this Simple

There are more people than ever trading today than there has ever been before, The internet is full of people offering THE way to trade profitably, yet, the stats of the percentage of people who learn to trade consistently profitably seems to have stayed at the same low numbers we have seen for 50 years or more.

The sad thing is that this does not have to be like that. We now have the tools for a large percentage of people to lern to trade successfully.

Price will move in the direction traded by the most agressive traders until those agressive traders stop being aggressive or until traders who are more aggressive trade in the opposite direction. By "most agressive traders" I mean volume traded.

Today, there are a plethora of tools available that can identify and measure the direction and strength of the aggression in a liquid auction market. Simplistically, its easy to see in which direction price is moving and easy to see when that movement is running out od steam.

Once we have identified a market move, we then need to identify the areas where this movement might meet some opposite agression.

This is all that trading is EXCEPT we need a trading plan and money management plan that decribes in detail how we interact with the other traders in the market,

Pete Steidlmayer is probably the best observer and interpreter of volume, price and time. The invention by him of Market Profile has probably been the greatest gift to traders since trading began. It puts volume, price and time into a measurable and observable structure that allows us to see aggression and order flow clearly. The morphing of Market Profile into Volume Profile has been the next step. Pete's work subsequent to Market Profile has taken his work into the electronic market era.

 

The chart above has the type of information I have been talking about. So you see, trading is simple. But still not easy especially if you don't know how to create that trading plan. No activity can be successfully completed without a plan. As Tatoo always said:" The plan, the plan!" 😂