Tim: Hello, everybody. Welcome back to TraderInterviews.com. Thanks very much for joining me for another interview. We're going to be speaking with Jim today, and we're going to talk to him about a couple of different things and we'll talk about market profile and just his overall philosophy of approaching the markets and how he looks for good opportunities. So first of all, Jim, thanks very much for joining me on the phone today.

Jim: Tim, thank you for giving us the opportunity. Thanks.

Tim: All right. Well, first of all, let's talk about kind of your overall philosophy in your approach to the market. Is market profile your bread and butter if you will of approach to the markets?

Jim: No, absolutely not. I'm a discretionary trader first. I use the market profile to organize the data. Once I have the data organized, it's easier for me to understand and interpret what is going on. But I'm a discretionary trader first. A lot of ideas, a lot of the really good ideas usually don't come from market profile. A huge mistake people make sometimes is trying to make market profile a trading decision tool. It's just a way to organize data. For example, when we talk about just the fundamentals of trading, I use a lot of what is called inference logic. What doesn't happen a lot of times in the market is often far more important than what takes place. Any trader can look and tell you want happened. If it's used in the profession, it can tell you what could have happened that didn't. And a great example of that is the day that Goldman-Sachs came out and instead of thinking go where crude was going to $200, they now changed their view on it and we had what to a lot of people appeared to be a tremendous, fast, rapid drop in crude oil. What didn't happen on that drop, there was a gap and the gap became 16 cents short,...

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