Tag: accumulation manipulation

Have you asked yourself yet, ‘what is a PIP anyway and why should I care?’

Great question!  A pip is an increment of measurement in the FOREX market.  It stands for ‘point in percentage’ and depending on what currency pair you are trading, typically is 1/100th of a penny.

 

This is important to you for 2 reasons.  The first layer of importance lies within the Fx365i methodology that we teach at the institute. And the second, is eventually going to be important to your bank account.

 

First of all, the ‘Market Makers’ (mainly the big banking institutions), follow a repeated pattern of business in the market.  They accumulate the market to soak up liquidity (retail trader’s money), then they manipulate the market to knock said retail traders out of their positions (often times the majority of retail traders are correct in their market speculation, but not before the market swiftly moves against them to take them out of their position,) before ultimately taking the market where they need it to go to profit heavily.  This is all measurable in PIPs, which is good news for us because knowing some of the measurements these guys use, we can increase the affectivity of our speculation dramatically so that we can trade for profit.

 

The second reason that this is important, is because by knowing how the market reacts at certain prices, based off of repeated measurements, we can have a specific place of entry for our trades. This increases probability, and more importantly, allows us to more effectively manage risk.  If you buy a currency low, and it moves upwards in pips, you can sell the position you are holding and however many pips make up the difference between where you bought and sold, or sold and bought again (trading short,) are now yours to keep.  Simple enough right?  Even better, the market moves 100’s of pips ALL THE TIME…yes, like every day!

 

Oorah you might be saying to yourself.  But wait! It gets better.

Pips are pips, and if you learn the skill set of capturing pips consistently, you can literally write your own income.  How you ask?  Not by capturing more and more of them, but by assigning a higher and higher dollar amount to them.

 

This is the magic of FOREX.  Once you learn how to safely capture PIPS, you can give yourself a 50% raise overnight.  You can do that over and over again.  Imagine walking into your boss right now and saying, ‘I am going to produce the same amount that I currently do, I am going to work the same amount of hours I always have, and I want you to pay me 50% more!’  Now imagine doing that again next month, and then the month after that, in perpetuity.

 

No job I’ve ever had works like that, which is one of the many reasons it might be worth your time to learn how to safely and effectively trade the FOREX for profit with us!!!

 

Until next time, live happy and pursue your passion.

 

Payton Parnegg

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First and foremost, the following vision for the FX365 Institute and its students is wholly my personal view as a student and instructor.

Why the change from two trading products to one?  In my opinion, the answer is simple—to more  quickly than ever before bring all of our students to higher levels of success as professional Forex currency traders.

Technically, the school’s reinvigorated mission statement is to get our students into real money accounts sooner, and, up the lot ladder faster.  Ideally, by the end of year one, we’d like to see our students earning at least $1,000 a month in their Forex trading accounts and be on their way to $100 PIPs and beyond in year two.

So, what can our students expect as they are taught the Market Maker course employing the SMP trading software?

Certainly, we WealthSmart traders will, no doubt at first, go through a period of adjustment and uncomfortableness.  It’s sort of like putting on a new high collar dress shirt and shiny new shoes.  Initially, the collar might cause a little neck irritation and the shoes might feel a bit stiff to the feet; but, in time, these sartorial changes can ‘make you look like a million dollars.’  With the changeover to SMP, I believe it will not ‘make you look like a million dollars’ … but … perhaps … ‘make you a million dollars.’

What else?  Certainly SMP offers more trading choices.  As a major advocate of WealthSmart’s moment in momentum trading, I want to assure everyone that you can do precision moment in momentum trading with SMP, and, if you choose, you can extend your trades because SMP helps you see the Market Maker’s price targets and you may decide to go along for the ride.  Taking SMP trading one step further, you can even decide to go beyond intra-day trading and do inter-day swing trading if that suits you.  More choices, that’s a good thing.

Finally, as I see it, two really big game changers.  First, with the SMP software, we now have a map with which to see each Market Maker business cycle play out.  Many retail traders, by placing entry orders, provide the Market Makers with a map of where their entries, stops and profit-limits are located.  We now get to turn the table on the Market Makers and to some degree get to see their entries, stops and profit-limits.  This is a game changer.

The second game changer, as I see it, gives us the ability to speed up our learning curve.  How?  WealthSmart did not allow hindsight or historical studies of the charts because its indicators are signals that change size, color, shape and location.  SMP does allow hindsight, that is, historical studies of the charts because it uses locations to provide information on Market Maker actions.  Locations on a map don’t change.

I say … WOW!  If we choose, we can do some homework called ‘back testing (looking left).’ We can invoke ‘hindsight is 20/20’ and look back at prior Market Maker business cycles of  accumulation, manipulation and profit release using SMP’s location tools (boxes, dots, average price, best price, liquidity lines, grid lines).  We can learn to read Market Maker maps that will help us find the gold.

So, let’s see … more choices in our trading, a map to help us navigate the Market Maker landscape, and the ability to personally speed up our learning process.  The ‘long and short of it’ is clear—the school’s getting better at what we teach so that our students get better at trading.  This is a win-win outcome.

Ira Barnes

ira.barnes@fx365i.com

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Here at the Institute we encounter countless people with Trading backgrounds. One of the largest hurdles most of them have trouble overcoming is their willingness to accept how much manipulation there really is in the Forex Market.

Our methodology focuses on shorter term trades (Usually less than a day in any given trade), which is where you see the most prominent manipulation of price; especially during high news events. By reading the manipulation, thereby using it to our advantage is how we are able to get our consistency from our trading. After all, who doesn’t want to be in the same trade as Goldman-Sachs’ Forex Division?

The following article is what we teach to our new students trying to get their arms around what really takes place in the Manipulation cycles.“Just how much is it really manipulated?”

If you are looking at a chart smaller than a 1 week time frame, you are watching the Accumulation, Manipulation, Profit Release process in action. Investment Banks and Financial Institutions trade lager lot sizes than any Retail Trader could ever dream of, and those trades require a massive amount of liquidity to cover. Hence, leading into any major Market swings (which you know they are taking advantage of) they need to set the stage beforehand by getting the Retail Trader to either buy in the wrong direction or set their stop at a convenient level they have set up for the pending stop-out.

Story time.

Have you ever had a trade going where hit your stop at the final push short/long only to turn at that very point and massively push leaving you behind with a big negative? That last push up/down is actually why the Market moved your foreseen direction after you got stopped out. Countless other Traders had their stops there as well, which after gathering the liquidity that was there, causes the Market to turn from that very point. From your pocket straight into the Market Makers.”Reading the manipulation/stop-out is key to the best entries and confidence to catch swings.” Market Makers know where the liquidity in the Market is. When you place a stop order you are sending your battle plan straight to those that would use it against you. This is no reason not to use a stop-loss, but rather a reason to learn how to read manipulation. Even if you were to not place an actual stop order in the trade, your “comfort level” to ride it negative would still be at roughly the same price level.

Luckily for us Retail Traders it takes a simple process to run the complex Forex; one that can be learned.

Stay tuned for the part 2, which will cover more of the technical aspects of the Manipulation process.

Also be on the lookout for our Primary Course. A FREE course designed to teach the basics of the Market Maker’s Business Model.

 

-Shane Guth

Director of the FX365I Smart Money Course

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So if you have been poking around our website, or are a student with us, you may be starting to think that the Forex Markets are manipulated…And you would be COMPLETELY RIGHT!

Understanding that Forex Markets are manipulated is the first step. Learning to actually profit from it is a completely different animal. Smart Money (aka the Market Makers) have got an entire playbook of different ways that they can whip a retail trader out of the profit. They can simultaneously use a news announcement to knock out short term traders, using the generated liquidity to move the market completely against the trend and collect stop orders from long term positions several hundred pips away. The list goes on an on in the different ways it can play out.

At the core there is a rather simple process that drives each play: Create a belief; challenge the belief; release profit.

Below is a graphic that FX365I created to illustrate this process in Oct 2013. Beneath it is a screenshot taken of the GBP/AUD on 11/14/2014.

 

The market today basically did the most basic manipulation that is possible. Understand the graphic is explaining a long scenario, today happened to be short though.

To expand further; the market entered into an accumulation phase (The range area whipping back and forth). After accumulating a sufficient amount of orders the Market Makers began their planned manipulation move. By driving the market down they were able to get any stragglers to jump in while also opening up a sizable number of OCO orders. Once the direction was set, they then whipped it the opposite direction to take out the cloud of liquidity found in retail traders stop orders. Once they were able to use this liquidity to fill their own positions, it triggered an automatic reversal from the swap. The market then pushed the direction everyone thought it was going to, except with the retail trader getting stopped out right before it happened.

This happens time and time again. If you do not understand their methods, I would encourage you to look into them as much as possible, as they will lead to truly understanding when and where money changes hands.

Thanks for the read and be sure to subscribe if you’d like more info on their methods!

 

-Shane Guth

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I was shocked by the news yesterday when I heard that the banks manipulate the Forex market.

HAHAHAHAHAHAHA!

Yes, that was an attempt at a little currency trading humor….  It actually was really funny watching non-traders who heard the news come up to me throughout the day and ask what I thought about this terrible manipulation of the banks.  When I tried to explain that the Smart Money Profile (SMP) software actually tracks the market maker’s manipulations, and that our entire trading methodology is based around understanding their manipulations, I was met with many blank stares and looks of confusion.  I am eternally grateful to Wade and everyone involved in creating SMP.  It is an absolutely amazing tool.

By the way, before we get to the main topic of the day, I want to say that I was fortunate enough to have the opportunity to sit down and pick the brains of someone who I would venture to say is well on his way to becoming one of the best traders in the world.  The funny thing is, most of you already know him.  I’m talking about Ira Barnes.  Being the humble person that he is, Ira does not frequently toot his own horn, but you should know that for several weeks now, Ira has been averaging hundreds of pips per week.  Yes hundreds.  Week after week.  These pips are all pulled by using information found exclusively on Fx365i’s incredible Wealth Smart trading platform.    In one of my next posts, I look forward to sharing with you some of the wisdom that Ira shared with me.

Well, on to the main topic for the day…

Over the past couple of weeks, I have found myself in a bit of a spin cycle caused by some serious over-trading.  This is very disappointing to me because I have been at this long enough now to know much better.  Hell, one of my first blog entries was about how over-trading got me into an epic slump.  Fortunately I did not enter those horrific levels of deep abyss this time around and I am bound and determine to control myself.  All I want to do is create sustainable winning trading habits and profitably move up the lot ladder.  Nothing else matters.

As such, I have created a new set of trading rules for SMP.  There are no earth shattering concepts here… just good trading habits and common sense.  I have pasted them below exactly as I have written them out for myself.  The real challenge of course is not in just writing them, but in following and LIVING them every single day.  That said, I am extremely glad I wrote them down because it gives me a reference point and something to live by.  I imagine the rules will continue to evolve, so I would love to hear any feedback about them.  Is there anything you would change?  Do you have your own rules written out?  If you’d like to share them, or any other thoughts, please email me at pipaddict73@gmail.com.  Happy Trading – I’ll see you soon!  Here are my SMP trading rules pasted directly from my Evernote:

These rules are not made to be broken.  They must be followed.  If you follow these rules, you will create an amazing financial life.
 
  1. LET THE TRADES COME TO YOU
  2. ONLY TAKE TRADES YOU UNDERSTAND
  3. LET THE TRADES COME TO YOU
  4. ONLY TAKE TRADES YOU UNDERSTAND
  5. PRACTICE OUTSTANDING TIGHT RISK MANAGEMENT ON EVERY SINGLE TRADE
    • You will be wrong on a decent amount of trades
    • If you keep those negatives averaging 8 or less pips, you can win big with the SMP software because you will hit a good amount of 20 pip trades and also hit some much bigger trades
      • Tight risk management is an INCREDIBLY important element in long term sustainable profitability.
  6. BE PATIENT

    • Wait for something you understand
    • Everything else is gambling.
      • You are not here to gamble, you are here to profitably interact with the market makers business model
    • Until you have new information, stick with your directional bias 
      • Do not get bored / sloppy and start trading both ways
  7. DON’T OVER-TRADE
    • Only enter trades that you believe have at least a 15 pip potential.  Ideally, look for 20+ pip opportunities.
    • Wait for what you believe is the real entry.  If you happen to miss it, so be it.  There will be many many more trades.
    • Don’t shoot all your bullets at one opportunity.  If you are wrong once, twice at the most, wait for more information.  If it happens to go and you miss it, it’s OK… there will be many more great trading opportunities.
      • Not over-trading is another INCREDIBLY important element in long term sustainable profitability.
  8. GET GREAT ENTRY
    • When you see a set-up you understand, be decisive and act quickly in order to get great entry.  
      • For example, if you are getting in because price is going through a dot, get in as soon as price goes through the dot, don’t wait for 5 pips of confirmation.
      • This allows you to maximize profit potential and run very tight risk management
  9. DO NOT TRY TO CALL THE TURN!
    • Only trade in the direction of your directional bias
  10. EXIT TRADES WITH SOUND REASONING
    • If you are up in a trade and the trade stalls / reaches a decision point / reaches a point where it is likely to take a breath:
      • Move your stop so you have zero exposure.  This means setting your stop at +1.5 pips so you are able to pay your commission and still walk away with no loss.
      • Once you have moved your stop, decide if you think it is likely that price will move back to reach your stop.  If you think there is a decent likelihood, then take your profit before it starts to breathe against you
      • If you believe you are just dealing with a breath in what can potentially turn into a much bigger trade, and that price is unlikely to come back to your stop, stay in the trade.  If you are wrong, you take a zero.  If you are right, this is how you pull huge trades.
        • NOTE: Do NOT get out just because price action is making you uncomfortable or you will be minimizing your profits.  Do NOT watch the trade stall, decide you’re going to stay in the trade, let it back up 10 pips, and then get out.  Either let the trade play out, or get out at the stall, but don’t let the market makers manipulate you into giving up 10-20 pips and then get out just when the market is about to turn back your way.
        • IMPORTANT: If you get new information that tells you you are more likely to be wrong, then get out of the trade with as much profit as possible – there is no reason to let it go back to your stop if you have new information
    • If you did not get great entry in a trade and it is stalling at a decision point, you did not earn the right to stay in that trade.  Take the profit and get out.
      • The only exception to this is if your intuition strongly tells you that the trade will keep going your way.  Make sure your stop is in a place where you have very little to no exposure.
  11. USE YOUR INTUITION
    • If it makes sense, but something tells you it’s not right, don’t take the trade.  Be patient.  There will be tons of great trading opportunities over the coming days, weeks, months, and years.  Let them come to you.  If you miss a trade, you miss it… so what?  There will be tons more trades.
  12. LET THE TRADES COME TO YOU
  13. ONLY TAKE TRADES YOU UNDERSTAND
  14. LET THE TRADES COME TO YOU
  15. ONLY TAKE TRADES YOU UNDERSTAND
  16. LET THE TRADES COME TO YOU
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