How Does “Markets & Momentum” Combine Market Profile with Trader Self-Understanding?
In Markets & Momentum: How Profiling Gives Traders an Advantage, James F. Dalton and Robert B. Dalton extend auction market theory by integrating trader psychology. The book emphasizes balancing market-generated insights with emotional self-awareness to avoid common pitfalls like FOMO, trend fading, and impulsive decision-making. 0
Analysis
Building on *Markets in Profile*, this latest release shares six decades of market wisdom and emphasizes that the biggest barrier to success isn't the market—it’s the trader. Through profiles (time, price, volume), the book shows how to remain objective by focusing on actionable market cues. It also exposes emotional traps like doubling down on losers or failing to let winners run — which derail most traders. It encourages traders to balance market-sourced clarity with self-awareness. 1
Core Concepts
- Market Profile in action: Organize data by time, price, and volume to interpret where value is—and isn’t. 2
- Psychological pitfalls: Insight into FOMO, fading trend days, doubling down and news overload—reasons most day traders fail. 3
- Emotion-aware strategy: Techniques to recognize and manage impulsive reactions, reinforcing control and discipline. 4
- Balanced focus: Emphasizes tuning into what truly matters—the market itself—rather than distractions like hype or noise. 5
- Target audience: Ideal for day traders, short-term players, and even long-term investors seeking trade clarity. 6
Practical Takeaways
- Build profiles to highlight value zones; rely on market clarity—not gut feeling.
- Recognize emotional bias like FOMO, and pause before reacting on impulse.
- Let winners run and don't chase exits—avoid “doubling down” when wrong.
- Filter out noise; act on market-generated signals, not headlines or analysis overload.
- Keep a journal of both trades and emotional reactions to identify your behavioural patterns.
Key Lessons at a Glance
Market clarity > mind noise: Let time-price-volume reveal value; ignore distractions.
Emotional mastery wins: Control impulses to avoid common trader traps like FOMO or revenge trades.
Track both trade and trader: Your emotional responses are as important as market data itself.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services
