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Trading Education Posted by Team Topstep December 14, 2018

Understanding the Auction Market and the Value of Market Profile - Tom Alexander

In this episode, Tom Alexander goes in depth on the benefits of viewing markets through the lens of the auction process, using the market profile chart as a tool for viewing the auction and analyzing the market and outlines the common denominators of successful traders. 

  • [06:53] – Despite all the changes in the market over time, the auction process hasn’t changed; which the market profile chart reveals, making it the most robust and objective way to analyze the market.
  • [08:15] – Why Market Profile should be used as a tool for understanding the market and not as a trading system
  • [16:32] – The number one reason traders fail is confirmation bias – they get overly invested in their beliefs
  • Common Denominators of Successful Traders:
    • [18:23] – They remember the goal is to be a profitable trader, so stay open minded and not overly invested in their beliefs
    • [20:19] – Resist confirmation bias and keep robust records of all trades, even the losing ones
    • [23:53] – They’re patient and trade opportunistically rather than relying on trading a single market
  • [26:56] – Why it’s important to focus on the fundamentals… the blocking and tackling of trading
  • [29:22] – How information overload has changed trading

To learn more about Tom and Alexander Trading check out

Podcast episode production by Dante32.