Hello, everyone! This is my first post on this forum. I'm starting this thread because most of the people I talk to in my Telegram Group or who watch my YouTube Channel don't understand what I do or how I read charts. I'm hoping that this thread will answer many of those questions. Background So, I'm 32 years old and have been trading professionally for a while. I began with only paper trading, reading, and studying for an EXTREMELY LONG TIME. When cryptocurrency fever swept the globe, I was among the first to jump in and profit from it. I'd always been curious about the relationship between volume and price, so when I came across Tom Williams' book Mastering the Markets, I was smitten. When I applied what I had learned and researched to my trading, everything changed for me. I had made money with cryptos, but I quickly realized it was due to luck (who loses in a massive bull trend, right?) and switched to Forex trading. Now, years/months later, I am doing heavy volume studies on a daily basis, tutoring and mentoring new traders, and publishing theories and research on Youtube, Telegram, and private trading groups that I am a member of on a regular basis. The purpose of this thread This thread is not intended for me to share any specific strategy or to try to impose "my way" of trading on others. The purpose of this thread is to educate new traders in some way, as well as to find like-minded traders, to build future friendships, and to have people to discuss trading with in order to benefit from one another in order to maximize profits and stay out of the market when conditions are not favorable. The Unfavorable Truth About Financial Markets The imbalance of supply and demand drives markets. The markets do not move because oil prices have reached a new high, the United States has entered a war, or a corruption scandal in one country has affected its currency. No, the fundamental, political, and economic news you're hearing and reading about is simply an excuse for the big boys (Smart Money) to accumulate (buy) or distribute (sell) large blocks of stocks (or currencies) when demand or supply is abnormally high. Examine major news events for a currency pair and ask yourself, "The USD had VERY good news this week, but how did the market turn bearish as a result?" The answer is simple: the big boys (Smart Money) bought a lot at the bottom and now needed to liquidate their holdings. When will they find buyers for their holdings without undervaluing them in their own interest? Well, during good news! What are the advantages of market manipulation for me? When trading, most new traders employ moving averages, fibonaccis, structure (support/resistance levels), or trend lines. Patterns and harmonics are used by some. I'm not criticizing any of your methods, but what if you increased the volume? What if you traded when you KNEW sellers were gaining ground on buyers, or when buyers were gaining ground on sellers? Is there a way to find out? Yes, by utilizing volume and the forces of supply and demand. Supply and demand imbalances move all markets. All you have to do is figure out how to read it correctly. I don't trade with any of the aforementioned indicators or patterns. Never! I sell when I see the smart money selling (when the market is weak) and buy when I see the smart money buying (when the market is strong) (the market is strong). The money of the average joe trading CFDs on his local broker does not move the markets; it is institutional money that does. Follow this thread and I'll shed some light on market movement, supply and demand, and how to identify strong and weak markets and use them to your advantage to make money. In the coming weeks, I'll post explanations, theories, research, pictures, trade examples, and much more in this thread. I'm looking forward to meeting a lot of new people in here! If you're new to the concept of volume, VSA, or Wyckoff, I highly recommend starting with Tom Williams' book Mastering the Markets. It is a free book that can be found by simply googling the title. The book will eventually try to persuade you to purchase the Tradeguider software, which I can assure you is a complete waste of money. Follow me in my thread and you can decide whether or not what I have to say is worth your time.
It is not, in fact, a simple proposition... Stopping your position prematurely reduces your win-loss ratio, and quick fingers give you a lower profit-to-loss ratio even when in profit, thus violating the rule of making more than you lose. Hold on to that position and watch it sink deeper and deeper into the muck. Why not sell now at 1.2990 if you're going to sell at 1.2950? Why continue to increase the loss? So, how do we solve this conundrum? It is not an easy task...but it will benefit you if you begin to consider volatility. How volatile is the instrument you are trading? Then you can ask yourself, "Where should my stop be to stay away from volatility while still staying within my risk parameters?" Let's face it, it's difficult enough to get the direction of a trade right; add in the timing and volatility, and you're doomed. so lax as to allow it to breathe while remaining close enough to keep your winners bigger than your losers The closer the stop, the riskier it is because stopping will kill you; the further the stop, the riskier it is because the Var is greater (assuming same position size) Where is the center?