this is very inferior type of thinking . " following smart money: why dont you follow what smart money follows and that's THE TREND
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I highly disagree with you because the big/smart money srmfx refers to do not blindly follow some chart trend. Instead, they help CREATE it. The big players base their trades on the macro situation and how one country's outlook compares to another. They look at things such as interest rate projections, monetary and fiscal policy, political situations, and other fundamental factors and are considered informed. EURUSD is a good example right now where the Euro zone economy is weak and ECB is resorting to stimulus, while the US economy is performing exceptionally well and more participants are betting on rate hikes in 2015. If you look at the Daily E/U chart the trend is down, however if the Euro zone economy suddenly started drastically improving and the US economy started tanking do you really think that downtrend would continue? Of course not because smart money places their bets on how one country will be performing against another in the future, not just some trend on a chart. Their order flow is what creates the trend and the herd follows that flow and has no idea why price is going that way, but still chase price anyways. They are considered uninformed. In any trend, smart money will usually be at the top of a downtrend or bottom of an uptrend, while dumb money will be at the bottom of a downtrend or top of an uptrend. Therefore you should follow the big players and the macro situation and become informed rather than chasing price by following a trend that has already happened and is exhausted.
PS - I'm not saying you shouldn't take the trend into consideration. You might be profitable just following the trend, however you WILL take on more losers that could have been avoided if you had followed the macro situation and the big/smart money's order flow.
Joined Aug 2013
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Status: Going with the flow
|244 Posts
Btw srmfx has around 15 years of experience and worked as a FX dealer. Do you really think his type of thinking would be inferior to a retail trader with false beliefs of blindly chasing trends when around 95% of them are losers?
this is very inferior type of thinking . " following smart money: why dont you follow what smart money follows and that's THE TREND
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smart money are usually positioned before a trend is established, they understand order flow,strength and weakness, the players involved, the weak hands, where they are positioned ,often exposed and on the wrong side of the market
Never said I was Batman,all I'm saying is you'll never see us together.
this is very inferior type of thinking . " following smart money: why dont you follow what smart money follows and that's THE TREND
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FXMasterSK explained the idea in detail. I will just add that the large market participants don't trade only trend. The FX options provide a lot more opportunities and you can trade also volatility and time decay. The options expirations are much larger every day which suggests that the big money don't trade only the trend. Following the big money is the modern version of the Trend is your friend. Markets are more complex and much different than 10 years ago.
Just finished the 69 pages now want to join with this thread. Really nice scalp trading. I'm in.
Try today's E/U. Now seems E/U in Killing zone, I just enter the trade with STE and close 1,2 part and 3 part close by manually. E/U is going no where. Seems wait for the news for German Ifo Business Climate.
Is there any recommend on MOnday's trading? Seems Monday always has low violate or maybe could try binary option for better R/R?
Hi Srmfx, Just finished the 69 pages now want to join with this thread. Really nice scalp trading. I'm in. Try today's E/U. Now seems E/U in Killing zone, I just enter the trade with STE and close 1,2 part and 3 part close by manually. E/U is going no where. Seems wait for the news for German Ifo Business Climate. Is there any recommend on MOnday's trading? Seems Monday always has low violate or maybe could try binary option for better R/R? I saw the nearest support is around 1.26700 {image}
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Hi windpower,
Sorry for the delay. The market was expecting the FED decision last week and this was the main reason for the low volatility. This week is the ECB meeting.
When the vol is normal I could trade spot. When it is low, binaries are better choice.
Hi Srmfx, Do you posting all of your trades? With such small TP and SL, quick scalping we can only see your trades after the facts and can not take advantage. Merci Senan Fuchedzhiev
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I don't post all of my trades. The purpose of this thread is educational and I don't plan to provide trading signals. The trailing stop of the last part was hit for 62 pts profit.
srmfx
