Tag: market makers

In the world of investing, foreign currency can often times be viewed as the Wild West. In general, people from the ‘financial planning’ world who often use, and promote long term investment instruments that use trends and dollar cost averaging,  generally have a scornful view of the FOREX market.
While this can be understandable, usually it is as a result of a general misunderstanding of how the FOREX market works and why it is different. Approaching it with the same strategy as say the S&P 500 is akin to showing up to a horse race with a greyhound dog.
The ‘ah hah’ moment for most comes when they realize and understand that the FOREX market is unregulated, and as a result, is a completely manipulated market. Manipulation scares most because it creates a level of perceived unpredictability, until they realize that manipulation occurs systematically. It occurs systematically because the people who manipulate the market are those with enough buying power to temporarily affect price direction, which causes fear amongst the general public, which then causes them to close their temporarily losing position. The ‘Market Maker’ can take the other side of that same position and now go and win with it.

Anybody who has ever dabbled in FOREX trading likely has 1st hand experience with market manipulation. They are sitting in a winning position for hours, maybe even days… Slowly their profits are increasing, and then suddenly (usually in conjunction with an economic news event,) the market races against their position and takes them from profit to loss, sometimes even hitting their stop loss.

Capture
Above is an hourly chart from the EUR/USD that illustrates several examples of market manipulation. You can see that there is a clear trend to the short side. The circled candles are manipulation ‘snaps’ that occurred inside of an hour, probably in minutes, that took out hours upon hours of previous areas that retail traders were likely entering trades short.
What is important to know about market manipulation and how to successfully trade it, is exactly what we teach to our student traders at www.forex365institute.com.
Once you learn the step by step formula that the ‘Market Makers’ use repeatedly week in and week out to make money, you can now wait for manipulation to take place, and take your positions with confidence along side of the big banks because you will know how and why they are doing what they are doing to make money.
‘It’s not what you don’t know that will get you, it’s what you think you know for sure, that just isn’t so.’
Until Next time, Happy Pipping!

By Payton Parnegg

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What to expect as a new Trader

In this blog I want to explore the topic of actually trading. Imagining the glamour of what it means to do is definitely the easy part; the freedom and money. Strategies aside; what are you actually doing while sitting there watching the charts?

When you sit down to start your trading session, it usually involves quite a bit of mental preparation along with some self-talk. A positive ritual to get into the right frame of mind is essential for profitable trading. For me personally, I usually review my own personal reasons for trading (which is just a simple list of why I need to the best job I can). This is then followed by a purposely quick look (around 30 seconds) at what price has been doing over the last 48 hours. If I am unable to form a coherent understanding of what this means for future price action then I step away for 30 minutes or so and then reevaluate. Wash, rinse, repeat.

Next comes the real analysis of price. This usually includes a lot of measuring and in depth looks at past movement in relationship to current price. By far the most important piece of this is being truly subjective and not convincing yourself of some outlandish trading plan. You have got to devise a trading plan that has got a reasonable entry, stop, and limit, and you have to stick with that. It can be very easy to convince yourself that you’re at a turn, but 9 out of 10 times this simply is not the case. If you’re able to fight off the urge to immediately jump into a trade, then the real test of a trader comes into play… Waiting.

Waiting is what you are going to spend the majority of your time doing as a trader. Nobody told me it could be so boring when I started. Your income is directly tied to your ability to wait so that your timing is good as a result. For those that have not traded before this may not seem like much, but waiting while being intently focused on a moving target can be pretty tricky business. Your mind will constantly be fabricating a less than optimal reason to just jump into the market. At some point of the endless waiting there comes a moment, that given the understanding and screen time, you are presented with an actual entry.

Depending on a few different variables (news, volume, overall movement, etc.), this entry opportunity can last anywhere from 10 seconds to around 20 minutes. It’s typically on the lower side though. This is a fork in the road. Sometimes despite all that patience, you still can’t make yourself get in only to be upset with yourself for the rest of the session. In the event that you do take the trade, you’ll most likely find that for the next while you are going to be hyper sensitive to any movement in the market. This is called “anchoring”, and something you really want to avoid while trading.

After the initial tension of clicking into a trade is over, it is surprisingly followed by a numbness to the price action (especially if you are drastically positive in the trade). Yet again this is a thought process that you will want to avoid. When a trade is working out well, a trader’s risk tolerance is prone to also go up. This is usually how a seemingly competent trader may see a massive profit only to ride through and turn right into a meager profit. That money is not yours until the position is closed and it is sitting in your account.

Now that you have closed your position out for better or worse, you are faced with another challenge; avoiding overtrading. Overtrading is one of the top account killers in Forex. If you have ever had an experience in a casino that ended in a personal resolution to never go back, you might have experienced something similar to overtrading. As much as many (myself included) wish it wasn’t the case, there is usually only 1 good opportunity per session with about 2 far less optimal variations on that same trade. Taking more than 1-2 well thought out trades in a session is a surefire way to dramatically increase the risk you take on. Needless to say it usually doesn’t end well for anyone but the Broker and Bank.

While this all may seem very daunting for someone that has never traded before, rest assured, pulling off a great trading session is one of the most rewarding feelings that you can experience. The wins (and losses) are yours and yours alone. Getting to the other side of learning to trade is an eye opening experience that forces you to look at yourself and become the best that you can be.

Thanks for reading and be sure to subscribe for more emotional and technical analysis of Forex Trading.

Shane Guth

 

 

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In case you’ve been living under a rock for the last decade, technology is changing the world at a more rapid rate than ever before.  For hundreds of thousands of people, the changes technology has brought has created a time of uncertainty, turmoil and desperation; and for others, a time of hope, gain & prosperity.

 

The age old adage, ‘when the going gets tough, the tough get going,’ has never been truer. However, as things have changed more and faster, at steeper curves of progression, many have found that their efforts of working harder has done little more for them than coming up short.   If it hasn’t crossed your mind before, it may be time to look at a way to work smarter, instead of working harder.  While people have been saying that phrase to me for years, I never really understood it until I was introduced to the concept of leverage.

 

If you are a forward thinking individual, you have crossed a time when you’ve looked at someone who has achieved high levels of financial success in their life and thought to yourself, ‘they can’t be THAT much better than me; they can’t be THAT much harder working than me.’  If you’ve thought that, I’m here to tell you that you are absolutely right. They most certainly are probably neither.  What they are doing better than you though, is playing a different game. And if you ever try to race a Ferrari on a bicycle, no matter how strong you might be, that is a losing proposition.

 

The person who has leverage however, has found a way to earn money not based off of an exchange of their own time, but from the time of others, a business system that reaches a much bigger group than they can themselves, or by leveraging their own money.  Unfortunately for most, in times of trial and tribulation, few people tend to rethink everything they know and usually try to find a higher hourly exchange for something they already have experience with or think they could do.

 

If you’ve been scratching your head looking for a way to beat the game you have been playing, it’s time for you to learn a skill set that can offer you massive leverage.  Enter, “trading Foreign Currency”, or “the FOREX  ”.   Without providing an over the top education in this blog about what it is and how it all works, just understand that people buy and sell money to each other all over the world every single day. As a result, this market behaves in a certain way, and by investing your time in getting a proper education in this market, you can learn a skill set that maybe for the first time in your life, can provide you massive leverage.

 

Just the other night, using the methodology that I have learned as a student at the fx365 Institute, I was able to identify an economic news event before it happened (1. 00 AM PST). I set an appointment with myself to evaluate the market at that time (I jumped on about 30 minutes prior), created a trading strategy, and in about an hour from the time I opened my computer, I closed my trading station with 1 trade; a profit of 9.8 pips. Now you’re probably asking yourself what a pip is and what that means to you.  A pip is an increment by which the forex market is measured in.  Anytime you enter and exit a trade, your profit or loss will be measured in pips.  Here is the important part: When you learn the skill set of trading, your quest for pips remains exactly the same.  However, the amount of money that they are worth to you changes over time.  In fact, you can assign as much or as little value to a pip as you are comfortable with or that your account margin will allow.

 

paytons pic

 

Recognize here that the skill set that you are learning never changes.  And here is where leverage enters. That 9.8 pip trade for me on that night was worth $0.98. For many, to wake up in the middle of the night, learn something completely foreign and new, earn just shy of a dollar and to be pleased with it is laughable. The fun part however, is soon that denomination will be worth $9.80. Great, you just bought yourself lunch, maybe.  Well what about $98 dollars?  $98.00 for an hours’ worth of work starts to be a bit more of an entertaining proposition.  What about $980.00?  Could that put a dent in some of your bills each month?  As you become a more competent trader, you can trade; 10 pip, a $1 pip, a $10 pip, a $100 pip and so on.

 

Where else can you learning a skillset that over time you could put hundreds of dollars an hour into your pocket? On top of that, a skill set that can be used from anywhere that you have a secure internet connection.

 

While this is only the tip of the iceberg, and of course, there comes inherent risk and fear that surrounds the financial markets, with the appropriate education and an approach similar to what one might go through to become say a licensed massage therapist, a nurse, a welder, trading the forex might just be worth a look. The fx365 institute is the only school in the world where they trade live with you every day, year round via a professional broadcast with professional traders. It’s your best bet to work smarter instead of harder.

 

Best of Luck!

 

Payton

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I was asked if I would blog about my experiences as a New Student at 365 Forex and thought it would be helpful for those of you who were wondering what it would be like to enroll. I also think it would help my learning to put down what I am learning and feeling.

 

A little history first…..I was looking for a way to create additional income. I am currently a Certified tax preparer and really busy for 3 months. During the rest of the year I do business consulting with an organizational called Catapult Leadership. That contract is for 1 week a month. The rest of the month—-my time!!!!

I am very interested in the financial markets and have always been extremely passionate about what is happening with the economy and how I could use my knowledge to my advantage. I saw an ad for a company called “online trading academy” and went to a presentation. I was so excited to learn something new and make $$ doing what I love— leveraging the market to my advantage. The presentation was very professional and informative however they only really wanted to manipulate me into purchasing additional education modules. I was disillusioned and disappointed. I read some of their reviews and realized there as a large group of folks like me that were also “duped”.

I wasn’t going to give up though! I did my homework and found another online trading company 365 Forex and went to tour their facility. The experience there was profound. No high level sales manipulations, no ridiculous high-priced commitment. Their business model made sense to someone who is a business consultant. They make their money when we make money. So for only a 5000 investment for their education modules and daily online sessions.  I could learn what I need to learn to supplement my income.

Signing up was the easy part. Now it is up to me to learn. At this point I have watched the modules….I have traded using the “fake account”….I have funded my real account……and I am ready to start trading. However I am stuck….I am taking this experience seriously and don’t feel I have done my job in the education process. There are still areas I don’t understand and need to learn. The folks have been there to support me but I am not “supporting me”. I want to understand what I am looking at…I don’t want to make a trade for the sake of making a trade….I don’t want to approach this experience like I am going to a “slot machine” and hoping that luck will get me through.

I have met a lot of people using this software and watching the daily sessions and they are making great money “doing this”…quite frankly I envy them. I know they know something I don’t and that bothers me. As you follow my journey to “learning this” I will do my best to provide you with a template to also “learn this”. Right now I am frustrated with myself that a “tax accountant/calculus major” – who “thought this would be easy” is finding it’s not!! I guess the old adage “if it was easy everyone would do it” holds true. My next step…..going to make a plan to “get there”….guess I should’ve done that first…..

 

Andrew Bisaha

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Here are some terms used focused around Forex Market Manipulation in the FX365I culture:

 

Accumulation: A range of Price that the Market Makers have stalled the Market at in order to collect orders, and set up a pending Market Move. Accumulation comes in two varieties for purposes of what you are looking for: Short term & long term. Short term accumulation will influence short term direction and quick manipulation moves, whereas long term manipulation will influence the overall direction of the Market.

Average Price: A price that Market Makers and Retail Traders have entered into trades. Average Price is represented by a bright green line on the 1HR and 4HR charts.

Bounce: When price hits an Average Price Line, Dot, Top/Bottom of Box perfectly then moves the opposite direction following.

Box: A light blue square or rectangle found on your 1HR or 4HR chart. This is how Smart Money Profile Software defines Accumulation on a larger time frame.

Breath: While the Market travels Long or Short, it will often temporarily stall and retrace slightly before continuing.

Candles: Price movement as represented by a bar shape on your charts (MarketScope). They will show you where price opened and closed, as well as where price moved within a given time frame.

Closed Positions: The section inside of your Trading Station where you can view your profit and loss of each trade that you have closed out.

Dot: A Bright green dot found on your 5M, 15M, and 1HR charts. These represent short term Accumulation and can be used for a variety of purposes.

FX365i/Forex 365 Institute: Your new Forex Educator. We provide Software and Education only

FXCM (Forex Capital Markets): The Broker that you will be using as a FX365i student. FXCM will be processing your orders when you decide to go into trades. They also provide the trading platform that enables you to watch the Market on your Computer (See Trading Station & MarketScope).

Grid Line: A series of reactive price points.

Indicators: Tools that retail traders rely on to make decisions regarding future price movement.

Limit Order: An order, placed automatically or manually, that closes your trade in the direction you have placed your trade in.

Liquidity: A large amount of money at an area in the Market. Also high volume times in the Market.

Liquidity Line: Blue and yellow lines that appear on your 1HR, 15M, and 5M charts. They represent liquidity and belief levels in the Market.

Liquidity Swap: A manipulation of price meant to change the overall direction of price.

Long: When the Market is moving up, or a Buy Order that you have placed.

Manipulation: When Price is deliberately moved by the Market Makers in order to stop-out Retail Traders, or to build a belief of a certain direction in Retail Traders.

Market Makers: The Financial Institutions that manipulate the Market.

Marketscope 2.0:  FXCM’s program that displays your charts and candles. Also where you are able to add in Indicators to lay over top of the candles.

Net: An area that consists of two Grid Lines.

News: Financial information pertaining to a certain currency pair. Can come in high, medium, and low volume varieties.

Pip (Point In Percentage): A measure of a currency pair’s movement. More simply though, a pip is what we in the Forex would consider a “point” for calculating profits and losses.

Price Alert: A user added line that draws infinitely across all charts on MarketScope in a specified pair.

Price Line:  The blue line (once you have properly set your colors up) that represents the live Exchange Rate between the two currencies you are watching.

Profit Release: A stage in the Market Makers Business Model. This stage takes place following sufficient accumulation and manipulation.

Pullback: Interchangeable with Breath – While the Market travels Long or Short, it will often temporarily stall and retrace slightly before continuing. This is usually a chance to place a trade of your own.

Push: Price has traveled long/short in a relatively short amount of time. Usually consists of 1-5 candles.

Range: The prominent highs and lows set by price in any given time period.

Advanced Rate Indicator: The “Flashing lights” inside of Trading Station. The tool we usually use to enter and exit a trade.

Retail Trader: Any Trader/Investor that does not work for a Hedge fund, or an Investment Bank. These Traders trade their own accounts.

Rotation: Interchangeable with “bounce” – Price nearing a resistance/support point, and turning the opposite way.

Run: Generalizes a gradual large movement of price. Can be characterized by multiple pushes, with multiple pullbacks.

Short: Selling the pair you are watching, or Price traveling down.

Slippage: When the broker is not able to place your trade at your specified price (Usually happens during high news events such as; GDP, Non-Farm Payroll, Rate Decision, etc.)

Smart Money Profile: The name of the software used in the Market Makers Course.

Snap: A quick, medium to large movement of price.

Stop Order: An order used to automatically take you out of your trade to manage your risk.

Stop Out: An outcome of manipulation by the Market Makers. Hitting masses of Retail Trader’s Stop Orders.

Traders Prison: The metaphorical “Prison” that many technical Traders land in by constant system development, usually through technical indicators.

Trading Journal: A means to properly track your trades on a day to day basis.

Trading Station: FXCM’s platform that allows you to view currency pairs, and manage positions, as well as your trading account. This is what FX365i Software is installed into.

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