Jim Dalton: Market Profile Trading

Jim Dalton: Market Profile Trading

Summary:

Jim Dalton, a seasoned trader, discussed various aspects of his trading approach and philosophy:

1. Market Profile as an Organizing Tool: Jim uses Market Profile not as a standalone
trading method but as a tool to organize market data. It helps him gain an edge by
providing a structured view of the market's continuous two-way auction process.
2. Preparation is Crucial: Jim's preparation starts at the close of the previous day. He
analyzes data from various timeframes, starting from the monthly down to the daily,
and then back to the profiles. This extensive preparation helps him understand the
market's context.
3. Monitoring for Continuation: Jim emphasizes the importance of monitoring for trade
continuation rather than fixating on exact entry and exit points. He adapts to
changing market conditions and looks for signs that support his trade thesis.
4. Position Sizing: Jim tends to scale out of positions rather than scale in. He
acknowledges that this might be a personal preference but has served him well over
the years.
5. Trend vs. Value: Jim gives more credence to trend when making trading decisions. He
believes understanding the overall trend is crucial before focusing on value within
shorter timeframes.
6. Staying Physically Active: Jim highlights the importance of staying physically active
and maintaining good mental and physical health to support trading success. He
draws parallels between physical activities like racquetball and trading.
7. Continuous Learning: Jim's advice for traders is to continually learn and adapt. He
recommends reading widely and looking for insights even outside the trading world,
as they can often be relevant to trading.
8. Computers and Order Flow: Jim believes that computers have largely taken over the
domain of order flow analysis and that individual traders should focus more on
understanding market synthesis, as this is an area where human traders can still
excel.
9. Bias Compartmentalization: Traders should avoid carrying biases into their trading
sessions and compartmentalize their longer-term biases from their short-term
trading decisions.
Jim Dalton's insights provide a holistic perspective on trading, focusing on preparation,
mental discipline, and adaptability as key factors for success in the financial markets.

Nalin Srivastava
@Innerspect
 Jim Dalton: Market Profile Trading

Jim Dalton: Market Profile Trading

[Link]
Now, today I spoke with the author of "Markets and Market Profile" and General Partner at
Jim Dalton Trading, Jim Dalton. Jim is one of our top requested guests, so it was great to
have him back on the show. And we kicked off today's show by Jim explaining how he uses
Market Profile and how he believes that by using Market Profile, it gives him an edge in his
trading. He explains how he prepares, anticipates, and executes his trades. A year ago, Jim
had a health scare, so he shares with us what happened to him and how he's doing, because
Jim is turning 80 this year. I asked him what has he done over the course of his career to stay
in such good mental and physical shape. Last but not least, I wanted to, just before this
interview aired with Jim, I got some fantastic questions from you, the traders. So we did a
rapid-fire segment with those questions. So without further ado, let me take you right to the
interview with Jim Dalton.
Market Profile continues to grow with day traders. Why do you think it's so popular with
traders?
Unfortunately, people put labels on things. If they had a deeper understanding that Market
Profile is not, it's simply a tool that allows you to organize the market's continuous two-way
auction process. For example, I am NOT a profile trader. I'm a discretionary trader, but I use
the Market Profile to organize the market's data. If you have organized data in front of you, I
think it gives you an edge. This is what scientists have done for years. When they use
distribution curve, for a distribution curve, you need a constant and constant in the profile is
time, a variable which is price. You compare a prime variable to a constant, you get a
distribution curve. And a distribution curve is nothing but organization of data. And once
that data is organized, it's easier to tease important information from it.
Okay, you say you're not a profile trader. So are you using Market or Volume Profile for
what I would consider confirmation?
No, no. Simply as an organizing tool. And let me go back to the idea I do not use Volume
Profiles. That becomes an issue constantly. I think people like Volume Profiles because it's
easier. You get one exact number. The problem with it, the three components that make up a
profile are time, price, and volume. Time is the most important aspect of any investment.
Something that's not accepted over time is rejected. And when you use a Volume Profile,
you've taken away the element of time. So I only use the traditional profile that uses TPOs as
the point of control or the widest line reading from left to right closest to the center of the
range.
Well, let's talk about your overall trading process, and we'll begin with your preparation.
Take us through what you're doing each morning to prepare for the day before you begin
trading.
Well, it's not in the morning. The first thing I do to prepare for the trading day is at the close
of the previous day. As a short-term and mostly day trader, as you end a particular day, your
focus is usually very narrow, very tightly narrowed in. As you know from trading for many

Nalin Srivastava
@Innerspect
 Jim Dalton: Market Profile Trading

years, markets get a tone for a particular day. Once that day is over, the tone may be gone.
It's easy, for example, on Friday, the market was breaking hard on the close. And if you were
just focused on what price was doing right then, very short term, you get very negative. So
the first thing I do, the minute the market closes, I go to the bar charts. And I go to the
monthly bar. So I go from the shortest time frame as I close the day immediately till the
longest time frame, which is, at which I use, is the longest, the monthly bar. I then go from
the monthly to the weekly to the daily, and then back to the profiles as I prepare for the
following session. For example, last Friday, the market was not complete. For example, the
high, the all-time high existed in the overnight market. If you observe markets over a long
period of time, you will know that it's unusual for an overnight or electronic high to last for
very long. That's simply one data point. The next data point, last Friday's high was not
complete. In other words, there was no excess or single prints at the top of the profile.
Additionally, when I look at it, volume was below average. So even though you had price
selling off quite sharply and selling off near the close, when you go back and look at the
charts, you say, well, the trend is up, and the trend's the most important thing, I think, that
you're going to deal with in the market. So as I bit my mind back, nice. Okay, the trend
remains higher.
Then I work backwards, and when I get back to the profile, then I start thinking about
preparation for individual trades, and that then becomes a question of looking at data
points. So, one data point would have been the high being an all-time high being made in
the overnight market. So that's a data point that says the odds are we could go higher. The
second data point was that no excess or completion to Friday's high. That suggested we
could go higher. And the third major data point was volume was below average as the
market broke on Friday. So I put a tweet out this weekend, and I said, you know, all I saw was
liquidation on Friday. So it's part of my preparation. I'm saying, say all I saw was liquidation
on Fridays. I didn't see a more potent combination of liquidation and new money selling. If
I'd have seen, you know, higher volume, better top, I mean, I said, wait a minute, maybe we
have a change going on. So when I put out a post this week, and I said, you know, I don't see
any indication of any significant change having taken place in the market. And of course, I
don't know, I'm not looking at the market right now, but we've been inside yesterday's or
Friday's range. Then it gets to the morning, which is, you know, just before the market
opens. I look, and I see what has happened in overnight activity. Overnight activity, we
measure from the close of the previous session. So all of the trade overnight was higher.
I think for seven or eight days in a row, there has been a counter auction or a correction
relative to overnight inventory. So overnight inventory gets too long. The counter auction
would be some selling to bring that inventory back into balance. And of course, we got some
liquidation this morning that brings that inventory back into balance before the market
moves higher. So I'm prepared with that. Next, I say, where are we going to open? And I
look, and I say, we're going to open today someplace in about the center of Friday's range.
When I see an opening in the center of Friday's range, say, the odds are that there's no
significant change today. More than likely, we're going to see a rotational market. Some
rotation up, some rotation but down, bringing the market into short-term balance. And
that's consistent with on January 14th, Tuesday, January 14th, tomorrow, we start to see the

Nalin Srivastava
@Innerspect
 Jim Dalton: Market Profile Trading

earnings season get underway with, you know, people like JP Morgan, Citibank, Goldman
Sachs, et cetera. So, you know, the market's taking a little breather, and let's see what
tomorrow brings, because that could usher in change or increased volatility.
Okay, just a couple of things I want to clarify. First is, you only trade the E-mini S&P, or at
least that's your primary market, correct?
That's my primary market, because most of my time now is spent on education, and it's the
best and most efficient market in order to conduct education.
And going through your preparation, you wait for the close of the day, and then just talk
to us about how you are, your process for this. I mean, I understand that you said you're
looking at monthly, weekly, daily, and then you're going to market profile. Are you then
writing notes down? Are you marking things on your charts? Are you writing notes so that
the next morning you wake up, you have this stuff in front of you to then get ready to
anticipate for the day?
Yes, the contrast, a lot of people think they're doing their preparation by marking important
points or references on their charts and graphs. I think that is insufficient. What I like to do is
when I do my research, I like to bring it down to paragraph form. And the reason I like to
bring it to paragraph form is one of the most important things we deal with in trading is
synthesis. And in order to, and it's too many people trade off with, you know, single
references and it's really much more complicated than that. But the synthesis allows me to
bring all the pieces together. For example, when I write up for the Friday and I get prepared
for Monday, part of the bigger picture is that all trends remain higher. There was no
indication of any serious selling. And the market appears to be overextended in my opinion,
but no indication that there's been completion to the current upside auction. So the
synthesis comes out that I don't anticipate any major change taking place on the start of the
following week. But I think putting it in paragraph form is far more important than fooling
yourself by just marking down references. It used to be when I ran a trading desk, I ran an
institutional trading desk. And when I knew a trader was in trouble with a position or at least
I thought they were in trouble, I would bring them into my office. I'd put a legal pad in front
of them and say, "Write down your thoughts on the trade." And they'd say, "Oh, I
understand the trade." I said, "No, no, write it down." And what I found, if you can't write
down in a paragraph synthesis of what you're really looking at, your clarity on the market
isn't anything or even close to the level that you think it is. You start to write it down and you
stumble, you better stop and take a second look. So I think it's important to put it in
paragraph form, which is my way of making sure that I've addressed synthesis.
I love that you've talked about writing things down. I'm writing things down actually as
you're speaking today. And from Linda Raschke to many other traders that I've had on the
show, there's just something about, I think writing something down that our brain works
differently. I think that there's a connection there. And that's why I really asked you about
how that process works because if you're marking something on your charts or if you're
writing down just some notes, how that carries into the next day. Now take us into that
next day. Now you prepared, you started at the close of the market. You come in, bell

Nalin Srivastava
@Innerspect
 Jim Dalton: Market Profile Trading

rings. What are you doing anticipating a trade? What are you looking at on your charts?
And then eventually get to the point to where you say, this is it. I'm getting in here.
The first thing I'm looking for in the morning is the potential for change. The more the
potential for change, the bigger the opportunities will probably present themselves in the
market. On that day, for example, as I said this morning, on Monday, the 13th of January, the
market was opening within about the centre of the previous day range. That indicates to me
that a major change is on the lower odds end. Had we gapped higher or lower, and I only
measure gaps from the high or low of the previous session, I do not measure gaps from the
settle. A gap, to me, would have to be above or below the previous day. If I open above or
below the previous day, I am probably looking at the potential for either major change or a
failure to follow through on that change.
So, for example, if the market opened higher, gapped higher, I'm talking about opening
above the previous day's high, the odds are that the market is either going to make a
substantial move to the upside or the market is going to fail to carry forward to the upside. If
it fails to carry forward to the upside, then the odds increase that we will re-enter the
previous day's range. If we re-enter the previous day's range, then the destination trade
becomes, at least the potential, not the actual, but the potential becomes the opposite
extreme of that day. So, I'm always looking for change. The biggest opportunities come when
there is a change in the market, and I'm always wanting to know: Am I looking for small
trades or am I looking for larger trades? Today, I'm looking for smaller trades.
Now, we talked about the execution side. On Friday, there was a late price spike to the
downside. I have what I call the spike guidelines. When a market moves down late in the
day, the spikes, higher or lower, a lot of times there's not enough time left in the trading
session to know if that price spike was accepted or rejected. So, despite guidelines, which I
put out in a post on Twitter this weekend, said the spike guidelines. If you open and remain
above the top of the spike, that's the most positive moment for Monday. If you remain
below that spike, that's very negative. Within the spike shows you're getting some
acceptance of that spike down.
Now, let's talk about the execution this morning. As I already said, I had an opinion that
there was probably no major change setting up because of the data points that I talked
about earlier. If you look, and you'll see that the morning's low was a single tick into the
spike. So that gave me an entry level right there, right at the top of that spike. That spike
becomes support. If it opened below the spike, the top of the spike is resistance. If it opens
above the spike, the bottom of that spike is support. In the market, when a single tick below
support, and that was an entry level for a trade, it gives you a place to enter. It gives you an
indication of where you would want to put your stop. You don't want to get accepted back
down within that spike.
Now, what people misinterpret a lot is they constantly come at me about, "Well, exactly
where do you get in and where do you get out?" Today happened to give an exact level.
Many times there is no exact level. It's just that the odds are building up that this market is
having trouble in the downside. For example, volume is drying up. We're not getting any

Nalin Srivastava
@Innerspect
 Jim Dalton: Market Profile Trading

good enthusiasm, and at that point in time, I don't know the exact level. It's an odds play,
and I will enter the trade. And then the most important thing, I think, for traders is learning
how to monitor for continuation. Too much, too many times, traders focus on where do I get
in, where do I get out? What is far more important is knowing how to monitor for
continuation.
For example, when I buy this morning, I want the market to remain above the top of that
spike. Secondly, I want the market to get back to Friday's point of control. Then my next
objective will be, can the market get above the overnight high, followed then by Friday's
high? So, I'll have these guidelines along the line or guideposts along the line. Think, okay, if
I'm going to get upside continuation, what do I need to see? And if it can't do that, then you
say, okay, the odds are against continuation. I need to exit that trade, whether it is at a profit
or a loss. Learning how to monitor for continuation will allow you to do far more trades and
not spend so much time agonizing over exactly where do I get in and exactly where do I get
out. It takes more experience in order to gain that type of experience, but that's really what
experience is about.
I want to talk a little bit about position sizing. Position sizing, I always talk about on this
show and on social media. I know when I want to be big, small, or not at all. Are you all
in? Are you scaling in? Are you scaling out? Talk to us about how that works.
Well, you've hit me in one of the areas that I'm very embarrassed about. I don't like scaling
in. I tend to be more black-and-white I'm either going to be in the trade or out of the trade.
And I'm asking that nothing's a hundred percent as I've said I've never had a rule that I
haven't broken. But one of the things that I am probably the worst add is adding to existing
positions and and that's probably cost me over the years but it's just psychologically if I am a
position that starts to work for me I have far more of a tendency to cut that position back I
scale out of a position. I rarely add to positions. I think that's a weakness in my trading, but I
have too many scars from becoming too greedy over the years. I've heard some disasters
from the other night when the market broke down when we had the war footing with Iran.
The market broke so hard. There are some traders that I've talked to who had some really
serious losses. They got caught up in some of these trade rooms, and they just kept adding
to the positions on the downside. And of course, it was just a huge trap. And I guess that's
happened to me too many times, so I tend not to be a good add-on trader, and I think that's
probably my biggest weakness.

For me my my greatest strength is actually when it comes to execution is that I could be

really aggressive when I see what I want to see but it's also my greatest weakness because
I'll over trade because I always think I'm seeing edges Jim. I want to go back to the
beginning of the interview today and talk about how market profile gives you an edge I
know you touch base on it a little bit but can you explain a little bit more on how market
profile gives you an edge in your trading?

It gives me an edge because it allows me to organize the data. I mean what scientists has done
three years they organized data in order to tease information from it. Too many times traders
get too emotional on the market. And, if you think and I've talked about this extensively. So

Nalin Srivastava
@Innerspect
 Jim Dalton: Market Profile Trading

many times traders like to think they've got great instincts I've always said I can make
somebody smile. I walk up and say you know you should be a trader you've got great
instincts. And, they'll smile and they just so proud of that. If we find out our instincts aren't
anything like we think they should be this.
A simple example I use is you know you're riding a motorcycle and somebody you're going
to give somebody ride on the back you're leaning into the curve and they're trying to sit stare
at it straight up. Or, another example the first time I ever went off a ski jump as a kid water
skiing. You know they tell me that you go up the ramp water and you know wood has less
friction than straight water. Yes, I heard him, but, I certainly, intuitively, didn't believe them.
And of course, as I go off that first jump, my feet my arms are straight in the air and when I
land it straight on my back. All of a sudden, I learned that my intuition was was wrong. I
think that organizing data helps me have a better keep a better perspective and control over
what is actually going on in the in the marketplace and that's all it is. The profile doesn't tell
me to buy it, doesn't tell me to sell, it just simply allows me to organize the data and observe
that organized data more objectively.
So Jim you're gonna be 80 years old, a year ago soon a year ago this week only hey you
will a year ago this week you had a scare. Talk to us about that?

I had surgery for what's called trigeminal neuralgia on the 7th of January. Evidently a piece
of plaque got knocked loose. When I woke up on the morning of the 8th, I could not move
any fingers or toes on the right side of my body. The first crazy thing that came to my mind
was that there was nothing wrong with me mentally. I said, 'Oh, I can still trade.'
Immediately, I thought about Stephen Hawking, you know, with all the problems he had, he
could still communicate. I was crazy, I know. I couldn't tell my best friend, my partner; I
couldn't tell her that was the first thing that went through my mind. I probably would have
had a second stroke when she got done with me.
But then, on the third night, I woke up, and my arm was straight out to the right, and the
fingers fully separated, which I hadn't been able to do. What that told me was that mentally,
it was a question of rewiring the brain. From that point on, I just started working a little bit
at a time. It took me about a week before I could make a partial fist, and now, here it's a little
over a year later, I can walk about a mile, mile and a quarter at a time. I'm back to the Y,
lifting weights, and it's a lot. It's a lot, and it has to do with reprogramming the brain, which I
think is very closely related to trading.
So many times, you know, I don't know what the actual numbers are; we see constant
anecdotal evidence that 95 percent or better traders, short-term traders, don't make money.
I think a lot of that is that some place you start over and kind of rewire the brain as to what
trading is about. But I think it's doable, just as I think it's in my case. I was very fortunate; it
wasn't total stroke; I had a lot more potential to rewire ourselves than we realize.

Thank you so much for sharing that story with us, Jim. Everyone knows that I've shared my
story about me having a heart attack; it's been almost six years, actually coming up next
month. And you and I have talked about that as well. And one thing that you and I both

Nalin Srivastava
@Innerspect
 Jim Dalton: Market Profile Trading

agree on is staying in shape. Longevity in this business goes beyond just being good while
you're at your screens; it's doing things when you are away from your screens. Talk to the
traders out there and just give us an idea of what you've done throughout your career
away from the screens to stay in physical shape that you believe have helped you with
your mental and trading game.
Well, I like you said, I think I played racquetball; I played tennis; I hiked; I travel; And, I do a
tremendous amount of reading. I enjoy reading, and I do some writing in there. It's amazing
what always amazes me is, in one aspect, you think you've totally separated yourself from
trading, and I'm always amazed at how many things you find out in the other world that are
really relevant to trading. You didn't set out to think about that at all, but you say, 'Wait a
minute, that is relevant.' One of the examples, and I've been talking about this quite heavily
for the past couple of years, is this idea of chunking. And chunking, it's a scary term; it's just
a psychological term, you know how we chunk information.
The example I've been using when you back your car out of the garage, it's amazing; we can
do it. You put the key in the car; you open the door; you adjust the mirrors; you back a few
feet. Before long, you do that; it's kind of one fluid motion. It is very difficult to read a book
on performance that doesn't have a serious section on chunking. So, I mean, I was reading
Josh Waitzkin's book, 'The Art of Learning,' and there's a huge section in there on chunking.
And you start to think, wait a minute, when you do as you know you know, he was a master
in chest and also in martial arts. And you start to think, 'Wait a minute, when you do martial
arts move, it's not one move; it's a series of moves.' They may look fluid, and it may look like
a single move, but it's not. And I think that's relevant to trading.
Reading recently, I read a book, I think the name of it is 'Range,' I think the author, if I
remember right, is Epstein. In that book, he's addressing, you know, maybe it's not so
important to have your kids go on head for their first career right out of college. Maybe
they're better off to be late bloomers, so to speak. And all of a sudden, here he's talking, in
the middle of this book, he's talking again about chunking, you know, how you gather
information, how you become a professional, how you become proficient in anything. So,
again, my time is spent deliberately away from trading, but I'm always amazed that you run
across things that are relevant. It's no different; you're behind when you're playing
somebody in sports or some kind of activity like that.
And you either see them come back or you come back, and you say, 'Wait a minute, we have
a tremendous ability in us to overcome obstacles if we can keep a clear focus.' So I set out to
do things totally unrelated to trading, but somehow they seem to always work their way
back.
They really do, don't they? My wife is like you; she compares everything to trading. And
something that I picked up over about six years ago was this game called golf, and I
started playing golf and figured, 'You know what, this is gonna be a great escape from
trading. Go out there, hit the ball.' I got addicted to the game, and I am amazed at how
many things on the golf course compared to what I do in trading and really how, by
playing golf, has taught me a lot about myself, and I believe it's helped me become a

Nalin Srivastava
@Innerspect
 Jim Dalton: Market Profile Trading

better trader. Jim, I actually did a tweet the other day for announcing everybody that you
were gonna be on the show this week. And we've had such a strong response from people
wanting you to come back on the show. And so I wanted to give Twitter an opportunity to
ask you some questions. So, I'm not gonna be able to ask all of them, but I have a handful
of them, so maybe we'll do a little rapid-fire segment if that's okay with you.
Jim, first question we got from Twitter is from Lightwater Trader, and they ask, 'I'd like to
know what Mr. Dalton thinks of the subconscious mind's role in day trading and how to
avoid or prevent as much as possible attentional blindness?
Preparation, and the preparation. We addressed this question early, and I said early starts as
the market closes. That's not quite true. I am making notes throughout the day, things that
are relevant. So it's ongoing preparation.
All right, we have my friend Josh, 'Trade with Profile.' He asks, 'As you look back at the
decades with the profile, what has remained constantly effective, and what has proven to
have less efficacy?'
I don't think there's been any real changes. The three components are time, price, and
volume that comprise the profile, and those are components that are applicable to any
market that is financial in nature. Yes, there's some things that were talked about early on,
you know, the 80% rule if you reenter the value area, 80% chance you'd go to the other end.
That was something that, you know, I was told by the Peter Steidlmayer, and as I did my own
research, I found that really wasn't applicable. So, I think the basic principles have remained
the same, and I think that's the beauty of the profile, that it's just a tool to organize data.
All right, next up, we have a question from Daniel Greene Ameir, 'With so many VPOCs and
gaps below on ES from October low, do you still believe in the probability they will get
retested? Has your theory changed or evolved?'
One of the most important things in and it is compartmentalize things. And actually, one thing
that destroys so often as traders, particularly short-term traders, is we have these biases
that we carry forward. One of the things I've talked about is the markets seldom hold more
than three gaps. And I remember I only measure a gap from the previous day's high or low.
If, in fact, the market, from the current market, does have more than that number of gaps,
what you need to do is compartmentalize those areas where the market could be weak later
on. Put them aside in a separate compartment. Don't pull them back out until the market
gets back down towards that level. My suggestion to short-term traders is to get in front of
the mirror every morning and say, "I am a short-term trader. My longer-term biases have no
relevance to what I do as a short-term trader."

Next question is from Hitesh. What does he give more credence: Trend or value?
Trend. I mean, you know it's not one or the other in there. But I always start with trend. Is the
market trending? Trending becomes a terrible terribly difficult definition because everybody
has their own definition of trend. My trend I start, I used I used the monthly to really get a
better idea of trend. But, within trend, then value throughout the day—as you know value

Nalin Srivastava
@Innerspect
 Jim Dalton: Market Profile Trading

represents about one standard deviation or just slightly less than seventy percent—it’s just a
way to filter out the noise throughout the particular trading session.
From Calgary Chad, he asks, "Has Jim ever seen the structure we have below us currently
in the past? He has many years of experience. Curious if he has ever seen this before."
You'll never see the exact same structure. Markets are just too dynamic for that. But
similarities, absolutely. I've traded beans, I've traded gold, I've traded almost anything that
moves out there. Some of the markets in the past had huge volatility. So yes, I have seen
similar structures. And normally, what happens when you get... Your question, I'm assuming
your question has a bias to it, that the underlying structure is not very strong.
That usually happens when momentum trading is at its peak. And I'm guessing that's what
we're seeing right now. We're seeing momentum trading that really started really heavily in
December. And momentum trading, I don't think we've had two back-to-back down days in a
long time. You know, the markets go until they are over. And so far, we have no indication
that this market is over. But yes, I have seen similar structures.
Last question, a lot of people were asking about this, 'Are you going to write any books on
order flow?'
No, I won't write any books on order flow, but I will suggest there's a great book out, and at
least I think it's a great book, and the name of the book is 'The Man Who Solved the Market.'
It's by Jim Simons, who was the founder of Renaissance Technologies. When he cashed out
of Renaissance, if I remember right, he took out about $23 billion. I mean, Renaissance did a
lot of work with, you know, trying to approach the market with algorithms mathematically,
etc. Not only is the book fun from understanding the market, but it's also fun in that, you
know, here was one group of his partners funded Trump, the other group funded the
Democrats when they took back up the House. So, there's an awful lot of other things going
on in the book.
But one of the takeaways that I found, and something that I believed for a long period of
time is computers are really good at taking pennies out of the market. And I think they
replaced scalping. They're much faster. As you may remember, you know, one group spent a
billion dollars to build a line, a telephone line from Chicago to the clearing centers, and for
the NYSE in New York just to get that, you know, tiny fraction of a second to get an
advantage on an order flow. So, I think that I think that the market really, on order flow, I
don't think, as individuals, that is going to help us anymore. I think that is the world of the
computers, and I think we should spend our time more on understanding the importance of
synthesis. I don't think that computers are good at that yet.

Jim, where could people find you on Twitter, and give us the website to check out.
On Twitter, you can find us at Dalton Trading. Our website is Jim Dalton Trading. And then,
on Twitter, what I usually do, one post on Sunday, and that post on Sunday is usually just to
keep our name in front of people, so when we have intensives or other products that we're
selling, that you at least know about us and where to go and take a look at what we're

Nalin Srivastava
@Innerspect
 Jim Dalton: Market Profile Trading

offering. This weekend, I did three posts. One post talked about an article, an in-depth article
that we did on what is trading really about. Another talked about order flow, and the third
was titled 'The Week Ahead,' which covered what I talked about earlier, that the data points
didn't point to any significant downward pressure on the market coming up this week, or not
that this week, but to start the week. I say, I think the earnings come out tomorrow, and that
can change everything.

Jim, what can I say? It's an honor every time we speak, my friend. I can't thank you
enough for taking the time to come on the show, speak with me, answer all these
questions from Twitter. You're just awesome, my friend. I like I said, I can't thank you
enough for coming on Futures Radio again.

Nalin Srivastava
@Innerspect