Episode #117: Anna Coulling on Volume Price Analysis, Macro Picture & Trading Psychology
Oct 24, 2023
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Anna Coulling, a seasoned trader and investor with almost 17 years of experience, discusses volume price analysis, trading psychology, and the macro picture. They explore topics like dispassionate trading, the influence of Gestalt theory on decision-making, and the concentration of wealth in the hands of powerful institutions. They also delve into using volume to analyze trading and express appreciation for Anna's success as an outsider in the market.
A three-dimensional approach to trading, combining technical, fundamental, and relational analysis, provides a complete understanding of market forces.
Psychology plays a crucial role in trading, and traders must develop a strategy aligned with their risk personality.
Major institutional investors like BlackRock and Vanguard control vast amounts of assets, creating potential liquidity challenges and systemic risks in the market.
Deep dives
A Three-Dimensional Approach to Trading: Technical, Fundamental, and Relational Analysis
The guest, Anna Cooling, shares her experience in financial markets and her three-dimensional approach to trading. She emphasizes the importance of understanding the complete picture by combining technical analysis, fundamental analysis, and relational analysis. This approach allows traders to gain insights into market moves and identify anomalies that may signal potential reversals or opportunities. Anna also discusses the importance of psychology in trading and emphasizes the need to understand one's risk personality and develop a strategy that aligns with it.
The Transition from Floor Trading to Electronic Trading
Anna and the hosts discuss the shift from floor trading to electronic trading and how it affected traders. Anna highlights the advantages of screen-based trading, such as increased control and reduced stress. However, she also acknowledges the challenges faced by floor traders in adapting to the digital environment, as some relied on the sensory experience and noise of the trading floor. She mentions the importance of staying updated with market changes, including the rise of algorithmic trading.
The Holistic Approach to Trading and Market Outlook
Anna discusses her holistic approach to trading, considering technical analysis, fundamental analysis, and market conditions. She emphasizes the need to have a complete picture by analyzing price action, volume, support and resistance levels, and other market factors. Anna also shares her cautious outlook on the market, anticipating a potential major correction in the near future. She mentions the impact of geopolitical events, fundamental news, and market conditions on trading decisions, emphasizing the importance of being adaptable and understanding market dynamics.
Restricted supply and ownership by BlackRock Vanguard
The podcast discusses how deals involving major companies like Apple, Microsoft, and Tesla are limited in supply and mainly owned by BlackRock Vanguard. These institutions are known for their long-term investment strategies, holding stocks for 20 to 30 years. The immense size of their holdings makes it difficult to sell large volumes of stock without negatively impacting the market. The speaker highlights the challenge of finding enough liquidity to handle the substantial size of their positions.
Curious and unprecedented market conditions
The podcast episode explores the narrator's observations of highly restricted supply in the markets and a surge in short covering. They share their experience of being a seller in the market and discuss how supply has never been so restricted in their 30 years of trading. They emphasize the role of BlackRock, Vanguard, and Warren Buffett in controlling vast amounts of assets under management, creating potential systemic risks and a standoff in market conditions. Additionally, the speaker expresses curiosity about how a forthcoming market correction will manifest and how it will be addressed.
She has been involved in the financial markets for almost 17 years as a trader and investor. She takes a three dimensional view, based on technical, fundamental and relational analysis. This powerful approach, when combined with price action and candle patterns, has given her a deep and detailed knowledge of the forces that drive the financial markets. She's the author of several books including: A Complete Guide to Volume Price Analysis, A Three Dimensional Approach to Forex Trading, and Forex for Beginners. Confessions of a Market Maker present Anna Coulling---------------------------------------------------------------------------------------------Any listener of this podcast that has the skills to pass an evaluation can become a prop trader fully funded by either APEX Trader or Topstep Funding. Our own microefutures trading community has many members who are now fully funded; no need to trade with your own money; keep 90% of your profits. To learn more, visit our website at https://microefutures.com/---------------------------------------------------------------------------------------------Anna on Twitter: https://twitter.com/annacoull Anna's Personal Website: https://www.annacoulling.com/ JJ on Twitter: https://twitter.com/vwaptrader1 Ray on Twitter: https://twitter.com/AllxDayxRayx
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