TARGET TRADING THEORIES / SYSTEM
========================
THE MECHANICS
PART 3
===========================================
WHY IS THE MARKET ALWAYS SWINGING UP AND DOWN ????
----------------------------------------------------------------------
As we established last post ,,,
The market is moved by the MARET MAKER ,,,, And ,,
It does NOT require so called LIQUIDITY ,,,, as the market IS LIQUIDITY ITSELF ! ! ! !
The market is for ever moving up and down ,,, and there is a reason in my opinion as to why it constantly does that ,,,,
And it is because of the following ,,,,
The market is a money making business ,,,, and like we previously said ,,, the market maker needs to buy and sell just like any normal trader in order to make money ,,,,,
SO ,,,,
The MM moves price up and down in order for traders to take positions so they can make a profit ,,,,
And ,,, Every trader at what ever level they are ,,,, retail or institutional level ,, usually needs to have a protection mechanism in place ,,, In the form of ,,,,
Either a STOP LOSS ,, OR a HEDGE ORDER ! ! ! !
And as it is always taught by the so called educators ,,,,
Place the stops loss orders below the previous low , or above the previous top ,,,
That behavior creates a mass of stop loss orders in those places ,,,,
As the MM neds to buy and sell ,,, and due the volume of money HE trades with ,, they need large amount of orders to execute against his orders ,,,,
So ,, the MM will NEED to move the market to places where there are a large amounts of congregated stop loss orders ,,,, which are usually above tops and below bottoms as we said above ,,,,,
Also often there are Pending orders for break out traders ,,,,
And ,,,,,
Due to the fact ,,, this process is also continuous ,,, a constant BUY and SELL activity is present at any one time ,,,, load ,,, unload ,,, load ,,, unlod ,,,,, As the market is moving ,,, because ,,
The market maker is taking the other side of every buy and sell order
So there is always a need to balance between his accumulated BUY and SELL orders in his book ,,,,,,
SO ,,,,
WHAT ARE TARGETS ,,, that MY THEORIES BASED ON ?????
THE ANSWER IS ,,,
TARGETS ARE ,,,,,
ANY TOP OR BOTTOM THAT HAS NOT BEEN TAKEN OUT YET ,,, FROM WHERE THE PRICE IS AT ANY GIVEN TIME ! ! ! ! !
So what does that mean ??????
It means that ,,,,
From where ever the price is at any given time ,,, It will ONLY move to one of two places ,,,,
1 ,,,, THE TOP ABOVE ,,,,, OR
2 ,,,, THE BOTTOM BELOW ,,,,,
Relevant of the AGE of that top / Bottom
NOTING ELSE in this business ! ! ! ! !
I have attached a chart to Demonstrate the above ,,,,,
--------------------------------------------
AS SIMPLISTIC AS THIS BUSINESS IS ,,, The MAJORITY OF TRADERS LOSE MONEY ! ! ! !
Why does that happen ????
In MY PERSONAL OPINION ,,,, It is due to the following ,,,,
TRADERS HAVE NOT ESTABLISHED A DEEP AND COMPREHENSIVE UNDERSTANDING OF PRICE ACTION ! ! ! !
This is a term used often in this business by many educators ,,,
WHAT DOES IT MEAN TO UNDERSTAND / MASTER PRICE ACTION ????
The answer is the following ,,,,,
As i have said in earlier posts ,,,, when i spoke about my 3 ANCHORS ,, which are ,,,
1 ,,, PSYCHOLOGY
2 --- PRICE ACTION
3 ,,, TMA TRADING
and also said ,,,
MY TRADING is based on 98% PSYCHOLOGY and 2% CHARTS / PRICE ACTION ,,,,
WHY DO I SAY THAT ?????
It is BECAUSE ,,,,
PRICE is moved by the MARKET MAKER ,,,, and NOT randomly ,,,,
SO ,,,,
There is ALWAYS a constant GUESSING element involved as to ,,,
WHAT WILL BE THE NEXT MOVE ??????
WELL ,,,,
This will bring me to the MAJOR POINT here ,,,, which is the following ,,,,,
In a previous post ,,,
I talked about the TYPE OF PSYCHOLOGY that I PERSONALLY developed that is applicable to this business ,,,,
and here it is ,,,,
Forget about any type of psychology you read about ,,,, here about ,, which is SADLY is ALLLL about making YOU feel like you are mentally retarded ,,
THAT IS JUST NONSENSE in my opinion ,,,,,
THE PSYCHOLOGY THAT WE NEED TO MASTER AS TRADERS IS ,,,,
MASTERING THE PSYCHOLOGY OF THE MARKET MAKER ! ! ! ! ! ! !
================================================================
We shall leave it here for now ,,,,
Next post I will go into detail about the last statement ,,,
In the meantime ,, as we always say ,,,,,,,,,,,,,,,
::::::::::::: THE JOURNEY CONTINUES :::::::::::::::
Cheers,
George
========================
THE MECHANICS
PART 3
===========================================
WHY IS THE MARKET ALWAYS SWINGING UP AND DOWN ????
----------------------------------------------------------------------
As we established last post ,,,
The market is moved by the MARET MAKER ,,,, And ,,
It does NOT require so called LIQUIDITY ,,,, as the market IS LIQUIDITY ITSELF ! ! ! !
The market is for ever moving up and down ,,, and there is a reason in my opinion as to why it constantly does that ,,,,
And it is because of the following ,,,,
The market is a money making business ,,,, and like we previously said ,,, the market maker needs to buy and sell just like any normal trader in order to make money ,,,,,
SO ,,,,
The MM moves price up and down in order for traders to take positions so they can make a profit ,,,,
And ,,, Every trader at what ever level they are ,,,, retail or institutional level ,, usually needs to have a protection mechanism in place ,,, In the form of ,,,,
Either a STOP LOSS ,, OR a HEDGE ORDER ! ! ! !
And as it is always taught by the so called educators ,,,,
Place the stops loss orders below the previous low , or above the previous top ,,,
That behavior creates a mass of stop loss orders in those places ,,,,
As the MM neds to buy and sell ,,, and due the volume of money HE trades with ,, they need large amount of orders to execute against his orders ,,,,
So ,, the MM will NEED to move the market to places where there are a large amounts of congregated stop loss orders ,,,, which are usually above tops and below bottoms as we said above ,,,,,
Also often there are Pending orders for break out traders ,,,,
And ,,,,,
Due to the fact ,,, this process is also continuous ,,, a constant BUY and SELL activity is present at any one time ,,,, load ,,, unload ,,, load ,,, unlod ,,,,, As the market is moving ,,, because ,,
The market maker is taking the other side of every buy and sell order
So there is always a need to balance between his accumulated BUY and SELL orders in his book ,,,,,,
SO ,,,,
WHAT ARE TARGETS ,,, that MY THEORIES BASED ON ?????
THE ANSWER IS ,,,
TARGETS ARE ,,,,,
ANY TOP OR BOTTOM THAT HAS NOT BEEN TAKEN OUT YET ,,, FROM WHERE THE PRICE IS AT ANY GIVEN TIME ! ! ! ! !
So what does that mean ??????
It means that ,,,,
From where ever the price is at any given time ,,, It will ONLY move to one of two places ,,,,
1 ,,,, THE TOP ABOVE ,,,,, OR
2 ,,,, THE BOTTOM BELOW ,,,,,
Relevant of the AGE of that top / Bottom
NOTING ELSE in this business ! ! ! ! !
I have attached a chart to Demonstrate the above ,,,,,
--------------------------------------------
AS SIMPLISTIC AS THIS BUSINESS IS ,,, The MAJORITY OF TRADERS LOSE MONEY ! ! ! !
Why does that happen ????
In MY PERSONAL OPINION ,,,, It is due to the following ,,,,
TRADERS HAVE NOT ESTABLISHED A DEEP AND COMPREHENSIVE UNDERSTANDING OF PRICE ACTION ! ! ! !
This is a term used often in this business by many educators ,,,
WHAT DOES IT MEAN TO UNDERSTAND / MASTER PRICE ACTION ????
The answer is the following ,,,,,
As i have said in earlier posts ,,,, when i spoke about my 3 ANCHORS ,, which are ,,,
1 ,,, PSYCHOLOGY
2 --- PRICE ACTION
3 ,,, TMA TRADING
and also said ,,,
MY TRADING is based on 98% PSYCHOLOGY and 2% CHARTS / PRICE ACTION ,,,,
WHY DO I SAY THAT ?????
It is BECAUSE ,,,,
PRICE is moved by the MARKET MAKER ,,,, and NOT randomly ,,,,
SO ,,,,
There is ALWAYS a constant GUESSING element involved as to ,,,
WHAT WILL BE THE NEXT MOVE ??????
WELL ,,,,
This will bring me to the MAJOR POINT here ,,,, which is the following ,,,,,
In a previous post ,,,
I talked about the TYPE OF PSYCHOLOGY that I PERSONALLY developed that is applicable to this business ,,,,
and here it is ,,,,
Forget about any type of psychology you read about ,,,, here about ,, which is SADLY is ALLLL about making YOU feel like you are mentally retarded ,,
THAT IS JUST NONSENSE in my opinion ,,,,,
THE PSYCHOLOGY THAT WE NEED TO MASTER AS TRADERS IS ,,,,
MASTERING THE PSYCHOLOGY OF THE MARKET MAKER ! ! ! ! ! ! !
================================================================
We shall leave it here for now ,,,,
Next post I will go into detail about the last statement ,,,
In the meantime ,, as we always say ,,,,,,,,,,,,,,,
::::::::::::: THE JOURNEY CONTINUES :::::::::::::::
Cheers,
George
LOVE YOUR GAME WITH A PASSION ,,,,, WORK WITH A VISION ! ! ! ! !
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