Smart Money Concept and Its Philosophy | Forex Factory

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Smart Money Concept and Its Philosophy

  • #1
  • First Post: May 27, 2024 11:14pm May 27, 2024 11:14pm
Hello everyone, I'm Hong Long Trader, a trader from Vietnam. Let me start with a bit of context; we're from the Far East, and this trading profession originates from the West, so we often turn to you to learn the craft. Securities trading in my country has been around since 2000, but forex trading is relatively new. However, we benefit from having masters who have studied abroad and returned to pass on their knowledge. I'm just a student like everyone else.

When I got the approval from my mentor, I started sharing this trading system with many fellow traders for free. Back in my country, when I began to share these insights, there was a lot of interest from fellow traders. Currently, the forum I used to be active on isn't as stable, so I'm restarting here on Forex Factory to leave a trace, as well as to reminisce before fading into the timeline (like many other traders).

My trading system, named Smart Money Concept, is built on solid foundations and deep insights into the forex trading field. I believe many traders on this forum are profitable, but that doesn't mean they should overlook the opportunity to learn something new; learning is never wasted!
A few notes:

  1. This system is not new, and I'm not a master of SMC.
  2. Just like my mentor, I'm an anonymous trader; you can only learn about me through a few rudimentary YouTube clips.
  3. The trading system may have been altered through the writer's interpretation. If I have misled you, please forgive me.
  4. This system is vastly different from what you've heard or learned before. Don't let preconceptions cloud your mind when it comes to learning something new.
  5. English is not my strong suit, so if you find any part difficult to understand, feel free to ask me to clarify!

  • #2
  • May 27, 2024 11:19pm May 27, 2024 11:19pm
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Picture illustration.

To avoid wasting the time of our fellow traders, the introductory part has concluded. The following sections will dive straight into the topic to save time and avoid unnecessary fluff.
  • #3
  • May 28, 2024 2:26am May 28, 2024 2:26am
Be cautious with buy and sell transactions. When placing orders, you must know where you are positioning yourself and for how long you will hold it.
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  • #4
  • May 28, 2024 5:49am May 28, 2024 5:49am
Would you mind explaining a bit more because it's not clear what you are trying to share here.
I suggest also to change the "name" to avoid confusions with what developed by ICT.
Thanks
  • #5
  • May 28, 2024 6:25am May 28, 2024 6:25am
Wtf are you talking about man, there’s no trading system here…

this is just a basic supply and demand setup that works 50% of the time. Always looks great in hindsight
  • #6
  • May 28, 2024 7:11am May 28, 2024 7:11am
Quoting MachineLearn
this is just a basic supply and demand setup that works 50% of the time. Always looks great in hindsight
lol if you're running a 2:1 rr or more you will make solid money if it worked 50% of the time.
  • #7
  • May 28, 2024 9:37am May 28, 2024 9:37am
I'm really sorry if my English is causing any misunderstanding!

First of all, I have to thank all of you for your responses in this topic; it makes me feel less lonely I really enjoy sharing my perspective to answer everyone's questions.

Firstly, I must say that there are many schools of Smart Money Concepts (SMC), and I wouldn't be surprised if people think ICT is the beginning of SMC. Understandably, SMC is the footprint of smart money, and I guess you'd be surprised to know that Wyckoff is also part of SMC. If I were to invite Michael J. Huddleston (founder of ICT) here, he would also affirm to you all that he is not the one who created the concept of SMC.
Furthermore, when creating this topic, in note number 4: I really hope you can overlook your preconceptions about SMC that you might have known. What is shared in this topic will be very different from what you've known. Please open your heart to accept me - a small but persistent man =))

And I want to emphasize once again: Don't let yourself be bound by the knowledge you currently have. You and I both know that knowledge is vast and broader than all of my and your understanding combined!
  • #8
  • May 28, 2024 10:20am May 28, 2024 10:20am
Quoting Ferna
Then feel free to learn from him/her. I don’t mind. Go ahead my young Padawan.
You are gentleman!

Continuing the story, in a few hours when it's time to start the new day's work, I'll begin sharing step by step about the system. But I also need to add that price action belongs to the future. Traders always need to plan to accompany the price, as shown in the TradingView chart. You can see that I've made plans, waiting for the price to approach and take action. My actual entries may hit stop-loss or break-even, which is quite normal. But there are two things I need to mention about this chart:
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  1. If the price reaches the breakeven point or the profit target, I will close the position to break even. This entry will never lose capital if it hits the stop-loss or break-even point.
  2. Re-entry to maximize profit.

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  • #9
  • Edited May 29, 2024 6:53am May 28, 2024 10:53am | Edited May 29, 2024 6:53am
Quoting Ferna
{quote} No problem. My student is a little shy, and needs alot of motivation/attention. I suggest you PM him regularly and get him engaged in any group you have. Don’t mistake anything he says for pride or self-ambitions, he will be very good student once you get to know him. Just a bit of a slow-starter. I picked him right off the streets when i found him. He has came a really long way since then, but still bears some scars of his past experiences. Tough love is adviced. I have faith and trust in you Master Lapuma, i will return when the moon stands...
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Hmm so you admit you have students? Do you charge them any fees?

Might have to move you to the commercial section since you made it clear you have students

Scammer Alert, be careful with Ferna guys

He may delete his post soon. Like he deletes his losing calls

Edit: Lol just like i have thought. I uploaded his post bc he deleted it like he deletes his losing trade calls. Beware of this scammer called Ferna
You have to have an IQ higher than 90 to interact with this user.
  • #10
  • May 28, 2024 11:22am May 28, 2024 11:22am
@lapuma
The thread is yours so please go ahead with the details of whatever you want to share here on forex factory otherwise the misunderstanding will keep growing.
  • #11
  • May 28, 2024 11:30am May 28, 2024 11:30am
The concepts like ICT and SMC and what not is what is wrong with forex these days. Just copy paste and renaming of already existing concepts.

Readers beware don't fall for complicated terms, FX is flow driven and no one can know where the order are in FX so liquidity in this context is just stupid.

Trading is about having a plan and walking away with least damage when it doesn't work, there is no holy grail strategy. Just focus on a strategy you think that works follow it for atleast 30 trades and watch the magic happen.
  • #12
  • May 28, 2024 8:59pm May 28, 2024 8:59pm
Quoting Nordling
{quote} Hmm so you admit you have students? Do you charge them any fees? Might have to move you to the commercial section since you made it clear you have students Scammer Alert, be careful with Ferna guys He may delete his post soon. Like he deletes his losing calls
Quite frankly, I don't understand what you are saying!
  • #13
  • May 28, 2024 9:02pm May 28, 2024 9:02pm
Quoting Merka
@lapuma The thread is yours so please go ahead with the details of whatever you want to share here on forex factory otherwise the misunderstanding will keep growing.
Thank you, I will do my job!
  • #14
  • May 28, 2024 9:08pm May 28, 2024 9:08pm
Quoting fxbaloo
The concepts like ICT and SMC and what not is what is wrong with forex these days. Just copy paste and renaming of already existing concepts. Readers beware don't fall for complicated terms, FX is flow driven and no one can know where the order are in FX so liquidity in this context is just stupid. Trading is about having a plan and walking away with least damage when it doesn't work, there is no holy grail strategy. Just focus on a strategy you think that works follow it for atleast 30 trades and watch the magic happen.
I completely agree with your three opinions.
  • #15
  • May 29, 2024 1:50am May 29, 2024 1:50am
I am just like you; after making a plan, I wait for the market. After a Change of Character (CHoCH) in the substructure, there was a signal to enter, and the break-even trades continued to be re-entered.
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  • #16
  • May 29, 2024 7:00am May 29, 2024 7:00am
Quoting lapuma
{quote} Quite frankly, I don't understand what you are saying!
No problem, i wasn't talking about you. I was talking about the scammer named Ferna, he got exposed and he deleted his posts and ran away like always.

Sorry to cause distruption in your thread, best of luck to you in your journey here
You have to have an IQ higher than 90 to interact with this user.
  • #17
  • May 29, 2024 9:17pm May 29, 2024 9:17pm
Quoting lapuma
Be cautious with buy and sell transactions. When placing orders, you must know where you are positioning yourself and for how long you will hold it. {image}
YES, watching continue!
  • #18
  • May 30, 2024 1:08am May 30, 2024 1:08am
Quoting lapuma
I am just like you; after making a plan, I wait for the market. After a Change of Character (CHoCH) in the substructure, there was a signal to enter, and the break-even trades continued to be re-entered.{image}
Did you enter this trade just because of break of structure?
How do you use the indicator at the bottom?
  • #19
  • May 30, 2024 5:00am May 30, 2024 5:00am
Quoting Merka
{quote} Did you enter this trade just because of break of structure? How do you use the indicator at the bottom?
Sure, you can see that I placed the limit order immediately without hesitation. Almost all of my entries are limit orders. I missed the re-entry after the break-even because I was having lunch. Even though I missed it, I had subsequent entries just below. I can enter and exit a position without worry.
The indicator at the bottom is just volume, and it will not be discussed within the scope of this topic.
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  • #20
  • May 30, 2024 11:13pm May 30, 2024 11:13pm
Quoting Merka
{quote} Did you enter this trade just because of break of structure? How do you use the indicator at the bottom?
I just reread it and understand your point better.
That's right, when View sells, just need a small signal, I will act!
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