As retail traders, we should understand that we all have a solid team of traders we are trading against; people who don’t want our growth and advancement in the market, people who take delight and pop bottles each time we lose money while trading, their aim is to see us fail at all times, they want to by all means force retail traders into margin call and pocket their monies at the end of it; this are the Market Makers (Big banks), these guys are the real professionals you always hear about in forex because they are the only traders who can tell you with accuracy what next will happen in the market.
Many of us are already aware of this but some of are not, these guys manipulate price the way they want with their monies. We can’t stop them except you don’t want to trade forex anymore after hearing this but if you still want to trade forex, you must accept this and just find a possible means of trading alongside this guys because if you can’t beat them, you just have to join them and the only way to join them is by getting a strategy that reveals what they are doing, their manipulations, their hidden moves, their intensions. This way you can trade alongside them.
I know of just two strategies that can reveal exactly what the market makers are doing in the market. These two strategies are simply DIVERGENCE and the MARKET MAKERS STRATEGY (BTMM). Unlike divergence, the market makers strategy is a great strategy to trade with. Its win ratio is amazing when fully understood how to use, but to be honest, divergence is far simpler to understand than this strategy and it gives you the same win ratio when used the right way.
Like I said earlier, divergence reveals exactly what is going on in the market. How prices are been manipulated just to induce traders to take trades the wrong direction. People who understand my type of divergence will just sit back and watch what is happening. I will tell you something that will make some of you change the way you trade; There was a period I walked pass a trader who was trying to place a trade after all his analysis in class, I don’t know what strategy this guy uses but all I knew was that I saw a clear divergence that showed the trade won’t move his analyzed direction. Funny enough this guy happened to increase his lot size 4times that day. He was completely manipulated to a point even when I told him not to take that trade, he never believed. I went as far as telling him to at least reduce his lot size even if he feels so sure of what he was doing, he still refused; his strategy says this, his strategy says that and all that. Well the good news was that he took the trade and in less than 2hours, this guy lost all the profit he had made for over a month in just a single trade. It was as if they were waiting for his execution before spiking the opposite direction. This is why having all your things defined is important. Your lot sizes should be defined; don’t use 0.1 today and tomorrow you are using 0.2, at least not until your account grow to a certain amount. You are free to use a lot size lower than what you wrote in your trading plan but nothing should make you use a bigger lot size than what is written down, the reason is because you won’t know when a trade will go against you; this might happen when you have increased your lot size to maybe 0.1 whereas your previous profit was from made from a lot size of 0.04. Losing a trade of this kind can wipe your entire previous profits. This is why this guy had to suffer that way.
Market makers are capable of making you think irrationally each time you are in front of your trading screen. They will make you think it is better to take the little profit you have gotten even when the trade in question has not moved anywhere near your target. They will make you think that by all means and by the time you succumb to this feelings they are inducing into you the first time, second and maybe third time, a new harmful habit is been developed. This habit will damage your account rapidly because when you lose, you lose to your stop loss; meaning you lose all but anytime you try to win, you win little not letting it get close to your target or better still hitting it.
This habit will make a trader who manages to win trades to suffer almost the same thing that a trader whose loses has taken over winning trades. Take for instance, you form the habit of going to the market to buy goods for 10$ and coming back to sell them for 4$ virtually all the time; what do you think will happen to such business, it will definitely collapse in a really short period. If you are always closing trades in this manner, you have given in to the market makers aim in your career and in a short while, you will definitely back-off. Reason is because when your losers become higher in figures than your winners, the money in your trading account will get finished and you are out of the business! You have crashed. Market makers know this principle and that’s why they make you think and act in this manner towards your trades.
In addition, have you ever asked yourself why you patiently wait for your trades to hit your stop loss when going against you? But when it comes to the ones that are profiting you, you always feel like to close them due to fear of market turning against you! This habit destroys and you should stop it. You are going against the rule of being inpatient with your loses but remaining patient with your winners; let your winning trades keep winning for your but be very uncomfortable when it comes to the ones going against you. When you are always uncomfortable with your losing trades, it will always lead you to your drawing board to see where you went wrong which is very necessary.
Furthermore, the market makers can trigger your stops from any range. This very reason makes pending orders that last up to the Asian Session useless.
During the beginning of a new day which is the Asian session, brokers widen their spreads just to trigger pending orders of traders. Once you are dragged into the market by triggering your pending order with their spreads, you are at their mercy at that moment. Have you asked yourself the reason why stop losses get activated easily but not so for take profits? How this happens if simple; if they are going against you, approaching your stop loss order, they widen the spreads and get you stopped even before price gets there. But on the other hand, if they are going in your favour, they always tighten the spreads as they keeps approaching your target.
Note: I am not telling you all this things just to scare you away from becoming a forex trader! No; this can never be my aim. Why I am letting you know all this is because when you alone are ignorant about what’s happening within your vicinity, you easily become the only victim but you become also vigilant when you know the happenings within such vicinity.
After reading this book, I want you to start trading with caution. You were thought that the up and down movement of price is due to supply and demand orders but am sorry to disappoint you because the market doesn’t work that way.
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