Why and how much market moves;Behind every temporary 50 pip move there is a tiny reason, like options and intraday news shocks etc…Behind fast and big moves (up to daily average true range) is almost always speculators covering their short or long positions.
Behind slow and collossal moves (I’m talking about 400pips plus moves) there is a campaign and major shift to focus on a date and time in the future because of an event or price target unfolding.
Whichever it is, the market always seeks to price in or price out news and then moves onto the next thing.
Despite what everyone else is trying very hard to tell you, we can extract information through the news (which resources I shared in the starter video for members) to find out what’s happening in the market and, eventually after tracking it long enough, pinpointing where it’s headed with deadly accuracy. I said eventually because it is not always clear what themes are in play. Themes like the oil market is surging because several oil rigs are down for maintenance and cannot operate, which means supply is limited. That would be a key to drive oil prices higher and with it likely the Dow Jones too (so correlation plays a massive part in what we do). Themes like China importing Australian raw materials, which will drive AUD higher. Themes like the Federal Reserve hiking rates, which will drive USD higher. All of these themes play out over days and weeks and over 100s and 1000s of pips. The juicy thing is we see those moves gaining traction from the beginning and leverage on that information.
This is the true way of trading consistently, confidently and with astonishing profits, simply because you know there is a huge flow of money supporting your trade idea.
Before I dig deeper on how to do it, I like to share a few success stories, starting with myself :D.
I’ve spent years perfecting my technical skills, because I was convinced I can’t catch every move and no one can predict future prices. So I dug into pinpointing reversals with deadly accuracy. I’m talking risking 5-7 pips and squeezing 30-50 and sometimes 130+ pips in profit. And I’ve consistently done it to such an extent, I wanted to share it with everybody and started forums. But truth was, when prices went against me, I could not explain it. In the end, it was a game of statistics. Strings of losses were never far off.
Thankfully, I came across Forex Juggernauts who showed me how the big boys make phenomenal returns. For the better part of a year, I did not understand it enough to do it on my own because my daft old habits would take over and seek quick money.
Needless to say, there came a point in my life where I had the mirror talk to myself. I took a stand. I said to myself I either die as the old dude who tried his entire life, or die as the old dude who everyone raises a toast to in his memory because he pulled it off in the toughest, ugliest, meanest, most challenging and unforgiving but highest paying business in the world. The bloody financial markets. I don’t know if it was the mirror’s magic or whatever, but I’ve done what I once thought to be impossible, to make money every week. I’ve worked on my bad habits (which I can help you in our 1-1 psychology session which you are free to take once a month). I’ve developed ways to always open the path of joy and happiness. Most importantly, I am disciplined both in preparation and execution. It is the most rewarding thing ever. I enter trades with unshakable confidence and unbreakable risk management.
A member told me that looking at markets through speculators method has totally changed his view of our chances to make it. His confidence has gone through the roof. He said knowing there are billions and billions of hedge funds $$$ and speculators and investors on his side of the trade makes him feel relaxed, confident, and determined to hold the trade until the target is hit.
Another enlightened member says “since trading with this method, I’ve got so much more time on my hand. I don’t need to flick through all the timeframes and micro-manage my position. I am on top of the incentives of my trade and don’t get impatient anymore or impulse trade.”
So how to do it? How do you know a currency pair will move astronomically in a particular direction? The easiest way to learn is to watch me do it and replicate it. See where I enter, why I enter and exit. Sooner or later, you’ll see the light and take it for a run yourself.
But to put things into context, whenever you read the daily recommended articles, you find yourself in tune with the market. After a few days, you’ll be able to explain market movements in hindsight. After a few weeks you’ll anticipate moves, and after a month you see price action developing way ahead of time.
When we speculators read information we categorise everything. Long term effect or temporary effect, good or bad. I’ll drop you an example. When NFP surges from 200k jobs anticipated to 260k thats a temporary positive effect for USD. But if the FED announces prior to NFP that the health of the economy is hinged on a better labour market and better NFP numbers, then the better than expected numbers become a long term positive for USD. As a speculator you’ll engage in buying USD to make gains over a period several weeks.
There are endless examples, and while the stories might change, the dynamics always stay the same. Temporary vs, long term, good vs. bad. However, there is one downside to trading the Speculators method, you can’t just dive in and make a killing. It’s a hunting game, where you track your prey for days and weeks and only take a shot when it is exposed. In other words if you are a type of person(not trader) who comes and goes and then comes back to the markets again you have no edge. You’re only a market donor. If you dedicate your time (about 30min-1 hour at night and 1hour-2 hours in the morning) and truly track stories and themes, putting everything into categories of short term-long term and good-bad, you’ll not only own it, you’ll be part of it and enjoy every trade you take.
I can’t stress enough, this is really it. Give your confidence a boost, engage on a daily basis. Track stories and start anticipating market reaction. Unleash your potential!