Mind Over Markets: Trading Psychology Podcast Price Is Old Information — The Auction Is What Matters
In this episode, George explores the historical roots of market trading, emphasizing the importance of understanding the auction process and the role of participants in setting market prices. Through engaging examples, he illustrates how negotiation and valuation impact trading decisions, offering insights into the psychology of trading and the art of order flow.
Takeaways
- Markets have existed for over 10,000 years, ingrained in human evolution.
- Trade involves basic options: accept, counter, or walk away.
- Market price was once local and communicated differently.
- Participant's needs and urgency influence asset value.
- Negotiation and valuation are key in trading decisions.
- Order flow reveals the story behind price movements.
- Real estate pricing involves opening bids, not true value.
- Market is an auction seeking agreement and price discovery.
- Price is set by participant interaction, not past performance.
- Understanding order flow provides a trading edge.
Episode Resources
Download the Free PDF: The 5 Most Destructive Loops in Trading — and How to Break Them
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Disclaimer:
Futures, options, and derivatives trading involve substantial risk and are not suitable for every investor. The high degree of leverage in futures trading can work against you as well as for you. Past performance is not necessarily indicative of future results. The information provided in this podcast is for educational and informational purposes only and should not be construed as specific trading, investment, or financial advice. Nothing discussed constitutes an offer to buy or sell any futures contract, option, security, or other financial instrument. You are solely responsible for your own trading decisions, and you should carefully consider whether trading is appropriate for your financial situation, experience level, and risk tolerance. Always consult with a licensed financial advisor, registered broker, or other qualified professional before making trading or investment decisions. While efforts are made to present accurate and timely information, the host makes no warranties or representations regarding the completeness, reliability, or accuracy of any information presented and assumes no liability for any losses that may arise from reliance on this content. By listening to this podcast, you acknowledge and accept these risks.