Ultimate Trading Course - Basic Knowledge - Smart Money
Trading Edges Which Will Work Forever
You Need Trading Edges That Work Forever
You need trading edges that works forever in order to be consistently successful in trading over many years and decades. The following two constants of the otherwise always changing financial markets shall provide the foundation for your successful trading career:
1. The always repeating behavior of the SMART MONEY
2. Trends and Nested Trends
These two characteristics of the financial markets constitute the reliable trading edges that has been in existence since 100 years ago, they exist today and, most importantly, they will exist in the future. The trading methods that I shall describe on this website are based on these two edges. After you have learned to use these edges properly, you will be able to trade successfully in any liquid financial markets.
A Shocking Fact About The Financial Markets
The first shocking fact:
Financial markets are not primarily driven by buyers and sellers, whereby the bigger power of one group determines the direction of the price movement. All financial markets are primarily driven by the SMART MONEY!
The smart money is the dominating group of market participants that exists in every financial market. The members of the group work together to achieve the goal of the group, which is to extract as much money from the trading herd as possible. In the case of the forex market, the smart money is represented by the international mega banks. The 8 biggest banks are responsible for 70% of the daily traded forex volume. With their overwhelming financial power, these mega banks can play with the mindset of the herd, trap the herd in the wrong position, reverse the direction and induce trends. I will describe the role and the activities of the mega banks in detail in later chapters.
Trends arise once the smart money has finished its position accumulation tasks. The smart money then pushes the price into the intended direction. A new trend begins. From now on the herd supports the direction of the new trend. With the knowledge from this website, you will be able to spot the very best trends. And with the knowledge about nested trends, you will be able to get the best possible entries into extremely fast and far moving market situations.
The proper application of nested trends can make you a consistently successful trader on higher time frames, with an average holding time of your trades of several days or weeks. With the additional knowledge about the behavior of the smart money, you can improve your results drastically and you can even become a consistently profitable day trader.
We shall now begin to take a closer look at the inner workings of the financial markets. Because the actions of the SMART MONEY will accompany us through all time frames, we shall begin with the chapter on the smart money..