E-Mini Trading: Is Market Profile Even Worth Bothering With?

There are legions of dedicated Market Profile users who are hopelessly dedicated to this market-driven information tool. Though I don’t usually write about Market Profile (MP), for reasons I don’t completely understand, MP is a great tool to understand the overall structure during the course of the trading day. To clarify, I am a scalper so I don’t utilize MP in the longer term, but there are great applications using the system if your trading horizon is longer than 15 minutes.

What is Market Profile about?

The system has its roots at the Chicago Board of Trade (CBOT) and was initially developed by J. Peter Steidlmayer and was released in various incarnations in 1985 and later years. The purpose of Steidlmayer’s research was to gauge market value as it develops throughout the course of the trading day. In strict MP theory, various market participants are identified; locals, commercials, members filling orders for other members, and members filling orders for the public. Recent MP theory can be more easily understood in a popular book by James F. Dalton, Eric T. Jones and Robert B. Dalton entitled “Mind Over Markets,” 2013 edition. While the book is certainly not easy reading, careful study of the book can be very helpful in understanding daily market structure and helps identify the participants driving e-mini trading price movement.

So who cares who is driving market movement and of what use is this knowledge?

As I mentioned earlier, I don’t specifically initiate trades based on Market Profile, but use the profile to identify specific areas that potential e-mini trading may develop. Areas like values areas, developing value areas, auction actions and reactions, and bracketed markets are all very useful in alerting e-mini trading opportunities to traders. At this point you might wonder, if I don’t use the system to identify specific trading opportunities, how do I integrate MP into my trading system?

Order flow, is the wild card in this equation. I currently use tradetheeminis and sceeto order systems. If I can determine specific areas, using the MP system, where trades are likely to develop, then order flow can pinpoint (in real time) the direction of trade at these general areas where trades can be initiated with startling accuracy. Further, by using confirming real time indicators, like tape reading and analysis, in tandem with MP and order flow, you can initiate some extremely accurate trade set-ups.

Because of the complexity of understanding MP theory and applying it to your trading it is often glossed over as being too technical or time consuming for the retail e-mini trader. I can tell you that time spent understanding market structure, order flow, tape reading, and correlated markets is well spent and will greatly increase your trading accuracy. Is it tough stuff? Yep, it isn’t exactly a walk down in the park when you embark on the task of integrating these systems together; but the rewards are manifold.

The trading system I have described is in sharp contrast to the status quo of correlating lagging indicators and hope the market continues in the direction of your tardy entry trade point. I don’t fully understand the current crop of retail traders’ lack of acceptance of the real-time indicators and data that are emerging in recent years. I have noticed a great number of traders who desire to sit in a trading room and take calls from a lead trader. The key give away is wanting to see some sort of brokerage statement to decide whether a room is a good one. What ever happened to learning to trade without specific calls in a trading room? In my opinion, a trading room should be a laboratory where traders interact and educate themselves, with the ultimate goal of trading independence. Is it laziness on the part of retail traders? I can’t tell you how many traders expect to sit in a trading room and absorb, through osmosis, what is transpiring in the market, but the numbers of these types of inquiries are a daily part of my trading life. As the saying goes, “give a man a fish and he will be satisfied today, teach a man to fish and he will be satisfied for life.” I am interested in education and technique, not spitting out trades that participants blindly initiate. It’s no way to run a business, and your personal trading is a business. Taking blind trade calls is like owning an auto parts store and not knowing the function of a brake rotor or alternator. Like I said, it’s no way to run a business.

In summary, I urge you to learn and master the techniques of real time trading, as the tools to accomplish this end are emerging and being refined on a daily basis. The lack of more widespread acceptance of these tools, which were once the exclusive domain of professional and institutional traders, continues to even the playing field against the once dominant role large trading firms enjoyed.

Investing One Hour Per Day in Your Marketing Strategies Is Like Rocket Fuel for Sales

Entrepreneurs face two major struggles: time management and the feast or famine cycles of business. Scheduling one hour of time per day, every day, without fail, can help you take control of both problems before they take control of you.

Schedule One Hour Per Day to Market Your Company

Set aside one hour per day, at least five days a week, to handle the marketing and promotions of your business. Even if you hire a freelance writer or marketing expert, you should also be taking action steps to promote your business.

Whether you schedule your time in the early morning, midday, or late afternoon is up to you. Choose a time when you’re unlikely to be pulled in the usual 20 different directions an entrepreneur is pulled in each day. If you find that it’s a struggle to sit down and concentrate for an hour, try this trick. Go to the store and purchase a kitchen timer. Put it on your desk. Set the timer for one hour. The ticking of the timer reminds you to focus, and you don’t have to watch the clock to see when your hour of focused attention on marketing is up…the timer dings when it’s time to stop.

How to Use Your Time Wisely: Marketing Strategies for the Entrepreneur

Your daily marketing hour is like fuel for your sales. Investing one per day into your marketing drips steady, consistent fuel onto the engine generating sales and leads for your business.

Most businesses go through a feast or famine cycle. Aside from some industries such as the garden center industry, which generates 90% of its yearly sales from April through June when people are busy buying seasonal plants, most businesses can do better smoothing out the sales curve. Entrepreneurs are notorious for marketing themselves into a sales roller coaster. When things are going great and business is flowing into the company, they’re so busy handling clients and orders that they forget to promote their business. A few weeks later, the sales engine sputters and stalls because the fuel – marketing activities – is gone. The entrepreneur forgot to refill the tank!

Keep your sales engine fueled through steady, consistent marketing practices. One hour per day, every day, builds your business steadily.

Marketing Strategies for Entrepreneurs and Small Business Owners

Okay, so you’re intrigued by this one hour per day thing. What marketing strategies (fuel) should you use to generate sales?

Small business marketing strategies most entrepreneurs can tackle themselves in one hour include:

  • Writing blog posts
  • Comment on blogs and industry-specific forums
  • Ezine articles and content marketing articles
  • Social networking posts and updates
  • Website updates
  • Advertisements
  • Email marketing
  • Video clip

Take these action steps today:

  • Which time of day do you want to devote to your marketing activities? Write it down. The action of writing something down represents commitment to a plan by your subconscious.
  • Make a list of five steps you will take this week to promote your business. You can see my article on five marketing steps to take or make up your own.
  • Then do it!

One hour per day invested into your business 5 days a week, 52 days per year (give or take), results in 260 hours per year devoted exclusively to promoting your company. Now that’s adding ROCKET fuel to your sales generator!

Search Engine Optimization – The Future of Accounting Marketing