This document summarizes a 3-part webinar series on understanding the logic and reasoning behind trading. Part I focuses on the "why" of trading - including why markets move based on the interaction of buyers and sellers, who the key market movers ("smart money") are, and frameworks like Wyckoff cycles, Rogers' adoption model, and auction theory for understanding market behavior. The webinar recommends tools like Market Profile to help analyze where the market is in its cycle based on these concepts. Part II will apply these concepts to current market context, while Part III will discuss using order flow and volume to time trades.

1. 3 Part Webinar Series
Part I
Logic: The Why Of Trading
By Dean
Https://getthattradingedge.in

2. Disclaimer
Derivatives trading involves substantial risk of loss
and hence is not suitable for everyone.
Past performance is not necessarily and indication
of future results.
All information shared in this presentation is for
educational purposes only and does not constitute
a trading advice in any way.

3. Webinar Series
Structure
Part I – Logic involved in trading. We will ask the
most important question in trading, "Why?"...
Part II – Context. We will use Market Profile and
Volume Profile to uderstand how to look at the
current context as well as the background,
answering "What?"...
Part III – Timing the trades. We will look how you
can use Order Flow and VSA to time your trades,
answering "When?"...

4. Objectives
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Why to trade?
●
Why markets move?
●
Who moves the markets?
●
What you can do to understand when the
markets will move?
●
Is there any help for beginners interested in
understanding the "why?" of the markets?

5. Why To Trade?
●
Obviously to make money...
●
Another more important reason is to match your
wits against the numerous traders trading at the
same time.
●
Beware the need to be "right"!!
●
Obviously someone is going to be smarter than
you.
●
Trading then becomes a game of learning and
being one of the smart ones...

6. Why Markets Move?
●
Markets have buyers and sellers vying for the
fleeting opportunities.
●
Markets will move when one side gets an upper
hand over another.
●
So, Buyers > Sellers = Up Move
●
Sellers > Buyers = Down Move
●
But you knew this already right, you need
something more, let's get on to that...

7. Why Markets Move?
●
A new way of looking at this question is
required if you want to make it in markets...
●
Markets move to satisfy some condition arising
out of continuous participation of buyers and
sellers in the markets...
●
So you may not understand every move of the
markets, but it sure has a reason behind it...
●
SM uses markets moves to pursue their
interets.

8. Who Moves
The Markets?
●
Smart Money is generally acting from behind
the scenes.
●
Amateur Money acts in plain sight.
●
SM use market movements aka auction
rotations to misguide the AM.
●
SM trap AM into bad positions and out of good
positions to carry out their trading plan.

9. What Can You Do?
●
To start with get hold of the right tools or
frameworks.
●
L-C-T is one such framework, we will be
learning in this webinar.
●
Three of my favourite are,
●
Wyckoff Market Cycles
●
Life Cycle Model By Gladwell
●
Auction Market Theory By Peter Steidlmayer
●
And James Dalton's take on all three...

10. Wyckoff Market
Cycles
●
Nothing new here, 4 main phases...
●
Accumulation
●
Mark Up
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Distribution
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Mark Down
●
Two intermediate phases...
●
Re-accumulation
●
Re-distribution

14. Life Cycle Model
By Rogers
●
Once again we have 5 categories of traders
who embrace an opportunity at different
stages...
●
Innovators
●
Early Adopters
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Early Majority
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Late Majority
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Laggards
●
Obviously you don't want to be in the last 2
categories and its almost impossible to be in
the 1st
for a retail trader.

15. Life Cycle Model
By Rogers
●
Why not to be in last 2 categories?
●
The late majority and the laggards enter when the
opportunity is almost lost.
●
The risk is very high.
●
Also in the last 2 categories you are essentially
playing against the first 2, but in opposite direction.
●
Why can't you be in 1st
one?
●
Multiple attempts needed to form a bottom.
●
Lot of capital required..
●
Read: Tipping Point by Malcolm Gladwell

17. Auction Market
Theory
●
Peter Steidlmayer compared markets
development to standard auction progression.
●
The parallels are striking, and an interesting
read.
●
Read: Steidlmayer On Markets

18. Auction Market
Theory
●
One can go into the process of comparing an
auction to the markets.
●
James Dlaton has time and again in his books
and videos, done a fantastic job of explaining it.
●
I will not do the drill, suffice to say that there are
two important rules, almost liberating, to AMT.
●
Market goes higher to find sellers.
●
Market goes lower to find buyers.

19. Lets Put It Together
●
Wyckoff Market Cycle will tell you...
●
What phase the market is in.
●
What is the expected behaviour of market
participants.
●
What SM is likely to do.
●
What AM is likely to do.

20. Lets Put It Together
●
Life Cycle Model will tell you...
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What side the innovators and early adopters are.
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What side you should be if you want to survive in
this business.
●
When a trend is likely to start and end.

21. Lets Put It Together
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Auction market Theory will tell you...
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What is the health of the current trend.
●
Signs of exhaustion of the trend.
●
Signs of when the SM is slowly getting out of their
positions or building opposite positions.

22. Next Steps
●
Ok so today we tried to understand the "Why?"
of the markets.
●
Next we move on to the "What?".
●
We will look at a brilliant tool which will help us
read all the things we talked about today on a
single chart.
●
We will talk about Market Profile in the next
webinar.

23. Thank You
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https://www.tradean.in