Steidlmayer on Markets: Trading with Market Profile, 2nd Edition [Hardcover]

J. Peter Steidlmayer (Author), Steven B. Hawkins (Author), Peter Steidlmayer (Author), Steve Hawkins (Author)

Book Description

ISBN-10: 0471215562 | ISBN-13: 978-0471215561 | Publication Date: November 22, 2002 | Edition: 2

Proven techniques for market profile users at any level
A "market profile" presents a number of basic elements from the market in an easily understood graphic format that, when analyzed properly, can yield profitable intraday and swing trades that traditional indicators do not reveal. Steidlmayer on Markets shows readers how to find these opportunities using the innovative techniques developed by the author during his many years of trading the market. This fully updated Second Edition covers innovations in both technology and technique-and broadens the scope of "market profile" to include stocks.
J. Peter Steidlmayer (Chicago, IL) joined the Chicago Board of Trade in 1963 and has been an independent trader ever since. Steidlmayer served on the Board of Directors of the Board of Trade in 1981-1983. While a director, he was responsible for initiating Market Profile and the Liquidity Data Bank. Steve Hawkins (Chicago, IL) has experience in trading in both stocks and commodities. Over the past seven years, Hawkins has educated traders across the globe. He has also collaborated on the writing of books on trading and written articles for industry trade publications. He is a graduate of the University of Illinois with a degree in economics.
New technology and the advent of around the clock trading have opened the floodgates to both foreign and domestic markets. Traders need the wisdom of industry veterans and the vision of innovators in today's volatile financial marketplace. The Wiley Trading series features books by traders who have survived the market's ever changing temperament and have prospered-some by reinventing systems, others by getting back to basics. Whether a novice trader, professional or somewhere in-between, these books will provide the advice and strategies needed to prosper today and well into the future.

Editorial Reviews

From the Inside Flap

Market Profile is a form of technical analysis that was jointly developed by renowned trader and author J. Peter Steidlmayer and the Chicago Board of Trade. Over the years, this unique tool has helped traders gain an unparalleled understanding of the markets, as well as find profitable trading opportunities within them. Simple in concept, yet complex in detail, Market Profile organizes a number of market elements into a rapidly understood graphic form—revealing trading opportunities other methodologies miss.

In the first edition of this classic guide to Market Profile, Steidlmayer introduced traders to this revolutionary new way of reading and trading the markets. Now Steven Hawkins returns to update and revise Steidlmayer's concept of Market Profile within the context of today's fast-paced markets.

Steidlmayer on Markets: Trading with Market Profile, Second Edition lays the foundation for understanding and implementing the Market Profile methodology by providing background information based on Steidlmayer's experiences as a commodities trader, and showing how he developed his ideas and learned to apply them successfully within the markets.

Hawkins moves on to fully discuss this groundbreaking approach to trading the stock, options, and futures markets.

In-depth insights and expert advice will teach you:

• How to make sound trading decisions using the Market Profile and Liquidity Data Bank approach
• The newest methods in volume analysis, including On Floor Information (OFI) and Volume @ Time
• How to recognize the "Steidlmayer distribution"—a trading concept that serves as the basic building block from which all market activity develops
• How to formulate a game plan and fine-tune your strategy
• And much more

Fully updated and completely revised to reflect today's ever-changing economic environment, the new edition of Steidlmayer on Markets combines practical guidelines for learning how to read and use the markets with the underlying principles of how markets work. Filled with helpful tables and charts, and timely new chapters, this book is the most comprehensive guide to trading with Market Profile.

From the Back Cover

STEIDLMAYER on MARKETS

Trading with Market Profile

second edition

"Anyone serious about market profile should read Steidlmayer on Markets, Second Edition. Pete and Steve have done their most advanced work yet to create an objective perspective from which to manage risk."
—John Helmers Senior Portfolio Manager, Tudor Investment Corp.

"I recall Pete Steidlmayer's pioneering work with the futures markets in the 1980s, in particular his discovery of 'the natural organization of the market' in accordance with the price/time relationship: Price + Time = Value. In this important new work, Pete takes us on a journey from his childhood discovery of the key concepts of order and personal control, to his early days developing Market Profile at the CBOT, to his up-to-the-minute ideas on trading, technology, and the future. And as a stock trader I found the concrete examples of Market Profile applications to individual stocks to be particularly gratifying."
—Bernie Schaeffer Chairman and Chief Executive Officer, Schaeffer's Investment Research, Inc.

"Steidlmayer and Hawkins capitalize on past successes while taking a useful tool one step further, and have filled a tall order. In the crowded arena of books on trading, they offer insight and unique trading tools the professional trader can incorporate into their trading program. This book offers insightful technical tools that add real value."
—Matthew Chamberlin Senior Trader, SAC Capital Management, LLC

"I have been using Market Profile extensively for fifteen years. Pete and Steve are visionaries in their field. Timeless organization of market data allows Market Profile to be applicable to all markets in any type of trading environment. With this blueprint, trading becomes more objective and consistently successful results can be obtained. Steidlmayer on Markets is a must-read for any trader looking to achieve long-term success."
—William Griffo Director, UBS Warburg

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Product Details

• Hardcover: 240 pages
• Publisher: Wiley; 2 edition (November 22, 2002)
• Language: English
• ISBN-10: 0471215562
• ISBN-13: 978-0471215561
• Product Dimensions: 9.7 x 6.5 x 0.8 inches
• Shipping Weight: 1 pounds (View shipping rates and policies)
• Average Customer Review: 4.2 out of 5 stars  See all reviews (6 customer reviews)
• Amazon Best Sellers Rank: #365,626 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

8 of 8 people found the following review helpful:

4.0 out of 5 stars great ideas with only fair explanations, June 9, 2008

By 

The Numbers Man (California high desert) - See all my reviews

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This review is from: Steidlmayer on Markets: Trading with Market Profile, 2nd Edition (Hardcover)

The book is in two parts. In the first part, Steidlmayer gives some personal background and tells about how he developed the Market Profile(TM) method as well as gives some insights into why it works based on his experience. He describes points about using his methods before we really know much about what they even are. The concepts are not the usual technical analysis kinds of things. These are new (since about 1981) ways of looking at markets that are based the underlying process viewed with the help of some elementary statistical ideas. The primary concepts involve looking at the time the market spends at a price to determine value. Value is different from price. (Time seems to be a surrogate for volume but volume information was not available generally back when the methods were developed.)

In the second part of the book, Steve Hawkins attempts to explain more systematically the concepts of market profile. Some of the terminology is reasonably well explained, but the synthesis of the concepts seems to be lacking. I was not satisfied with the explanations. I felt I had to take his clues and figure out the ideas myself. I frequently found myself rereading passages two or three times to make sure I caught the ideas which were opaquely explained. I hope this is not the best explanation of Market Profile (it is the first book I have read on the topic, but I like it very well). Finally, the last chapter is pure unadulterated and unapologetic promotion of their products. I do not know anything about these, but I think I prefer CQG's graphics to their CapFlow graphics.

I would give this book five stars for originality, but only three, or maybe four stars, for clarity of explanation.

7 of 9 people found the following review helpful:

4.0 out of 5 stars A New Understanding to the Markets, June 1, 2006

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Pared (San Antonio, TX) - See all my reviews

This review is from: Steidlmayer on Markets: Trading with Market Profile, 2nd Edition (Hardcover)

This is an excellent read and well worth the investment. It will give any trader a better understanding of why markets do what they do. This book does not give a specific trading strategy (which was one of the things I was looking for) but rather insight into a tool that will support your trading and help you make decisions. This is the type of tool that the pros use. My biggest disappointment is the acknowledgement that Market Profile doesn't work like it used to, now you need new sophisticated tools and techniques that leverage Market Profile data as a starting point, which is convenient because the authors happen to have the software to do just that, Capflow32.

5 of 7 people found the following review helpful:

2.0 out of 5 stars Who edited this book? or Thin Capflow Exposition, March 18, 2011

By 

Wolfgang - See all my reviews

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This review is from: Steidlmayer on Markets: Trading with Market Profile, 2nd Edition (Hardcover)

Steidlmayer is a genius.
And apparently quite a nice gentleman to boot.
He respects the markets enough to add to the sum knowledge of the trading community by sharing his brilliant insights into trading.
But this book is a bust.
Part I is great. It's Steidlmayer telling anecdotes about growing up and getting hooked on the business. Stuff that anybody who has ever traded a one lot, will find fascinating, familiar, and encouraging.
Part II is Hawkins doing a darn poor job of explaining concepts that Dalton does far better. But then, when he has completely mystified you with poor logic or bad editing, I know not which, Hawkins makes a great observation and you almost want to forgive him for the confusing style.
J. Peter Steilmayer is a genius.
Market Profile is brilliant.
I read this book.
I suppose I am glad I did.
But it did not contribute much to my knowledge of MP.
It barely covered segmented data.
Did a poor job of explaining "market time".
ANd it skimmed over Capflow, which is what I really wanted to learn about.
You should borrow it from a friend, get it from the library, or look for my edition for sale on Craigslist.