@FuturesTrader71 on Twitter was tweeting to one of my subscribers, @donahchoo, earlier today and it really resonated with me. I captured the tweets and am posting them here for everyone who reads it to benefit. These are not my words – they are quoted directly from FuturesTrader71. His blog can be found here: www.futurestrader71.com and I highly recommend you check it out.
These are @FuturesTrader71's tweets from Thursday January 28, 2010:
I think what most fail to see is that volume profiling is not a system. It is a way of looking at the action. Everyone must follow a plan
Maybe u r thinking that just because there is an HVN or LVN, then something or another is going to happen? Can be confusing
Better to see it as "ok..this is an area they really liked (HVN)...or disliked (LVN), let's see how they treat it this time"
"and here is what i would expect if it holds/fails and this is how I will hedge my risk"
What most ppl think is: Here's an HVN/LVN, I'm going to get in here because that's what it is. Disappointment follows.
Like I said, it is not a system. Take all pieces and bring in context of an auction. Just like a musician walking in on rehearsal
U don't tell others what u want them to play, u just pick ur spot, read ur sheet and play when it makes sense to the music
Most ppl want to walk in on rehearsal and just start beating their drum or jamming a solo. Feels good for a bit, but doesn't work
Does that make any sense at all? There is a fine line there and it is lost on many ppl. This is why I train my own traders
If u can't find rhythm being played, then don't play ur instrument. Just wait for ur spot or next song. Discipline is key.
For some reason, most ppl just want to play at any cost and at any point in the song with no practice. Brokers make it easy
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