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Forex Bank Trading Strategy Revealed – Forex Day Trading Strategy.
Forex Bank Trading Strategy.
Anyone successful in the forex market will hands down agree there is no greater career one could have. The ability to work your own schedule, the freedom, and income potential is hard to match with any other career. Having said that, what does it take to become successful in the forex market? Plain and simple we need the proper forex education to achieve success.
In a market with a success rate of 5% it is important that we search out and receive forex training that will allow us to be in that very small successful group of traders. How does one go about doing so? To put it simply if the forex trading strategy that is being used is one used by the masses, then how can one expect different results than the masses? 5% of retail traders succeed, which tells us that 95% fail and thus we have no other choice than to break free from the failing forex education system!
Enter You Enemies Head and Think Like A Bank.
Before we begin I would like to give a preface to the forex bank trading strategy. First, it is common knowledge that the banks drive the forex market. It is not a hidden fact that they drive the most amount of volume on a daily basis and as a result they drive short term moves. If we understand that the banks drive, manipulate, and push this market then wouldn’t it be hugely beneficial to track when they are entering and what position they are taking? This is the very foundation of the bank day trading strategy we employ. If we can decipher when they are entering, and what position they are taking then we do not need any further information to make a profitable forex trading decision.
We must remember that this is the banks market, and not ours! Retail traders are simply figurative flies on the wall. Keeping that in mind, why then do most retail forex traders out there attempt to invent or learn forex trading strategies that have been created to try and fit a market we do not control? It is our strong conviction at Day Trading Forex Live that success in the forex market is only possible when we stop trying to fit forex strategies to a market we don’t control, but rather learn the trading strategy of the banks! This is their business, and they have a business model (aka forex trading strategy) that we must learn to follow to achieve consistent results! Every day the banks repeat the same 3 step process. If we learn to trade forex by following their model we will have a much greater chance of success…after all the banks are the ones moving the market.
3 Steps To Success.
As we just mentioned the banks use a 3 step process day after day to profit from the forex market. We can think of this process as their forex trading strategy. It has rules that they follow, it is repeatable, and it consistently results in profit. In any market there must be a counter party to every transaction. If you are looking to buy the market someone must be willing to sell to you, and conversely if you are looking to sell the market then someone needs to be willing to buy it from you. This is the basis for how the market at its foundation works and therefore this is how we track how the banks trade.
Accumulation: As discussed above there is a counter party to every transaction in any market including the forex market. Therefore when a bank or group of banks desires to enter the forex market they must do so by accumulating a position over time. Unlike you and I, because of the sheer volume banks push they must enter positions during times most people would term as consolidation or range bound markets.
These periods of consolidation are what we call accumulation as they are areas where smart money (banks, hedge funds, ect) enters or accumulates their desired position over the course of time. By doing this through tight range bound periods banks are able to not only keep what they are accumulating secret to the rest of the market, but they are also able to get a much better overall entry price. This is the foundation to any trade made by the banks. Money is made by accumulating a long position they will later sell off at a higher price, or accumulating a short position they will later cover at a lower price.
This is one of the most essential keys to trading forex successfully, and yet it is always over looked or worse yet called consolidation which is viewed as useless times in the market that mean nothing. Our single goal should be to track when the banks are entering the market and what position they are entering and thus these areas of accumulation are critical to our trading decisions. As discussed above banks are the ones moving this market, and therefore if you can identify the position they are accumulating you can identify which direction the market will move next with a high degree of accuracy. What then comes after this period of accumulation?
Manipulation: Over and over through my years of educating forex traders I’ve heard many forex traders say that it feels as if they are entering the market at exactly the wrong time. Many retail forex traders feel as if the market is just waiting for them to enter before it instantly turns the opposite direction. I’m here to tell you that it’s true! This is a critical idea that all must understand and come to accept. We all know the failure rate among traders, but what does this information tell us?
Remember above when we discussed that there must be a counter party to every trade? This is a well-known fact and it is indisputable. Because the mega banks position is so large they must essentially create their own market. For example lets say Bank X was looking to sell the EUR/USD. In order to sell the position size they desire there would have to be someone willing to buy an equal amount of the EUR/USD. This is where the retail forex trader comes in.
Forex traders are predictable. As a general rule of thumb all traders go through the same education, use the same trading strategies, and use the same software and indicators. While each strategy has its own small differences, the majority generate the same losing results and this is undeniable. If this weren’t true wouldn’t we see a success rate higher than 5%? Therefore while the strategies differ, the outcome and thus trades tend to be in large part the same which explains why the outcome of retail traders tends to be the same. Because of this the banks are well aware of how to get retail traders to enter the market.
Going back to our illustration if Bank X was looking to sell the EUR/USD then they would push the price up, which it turn would begin to trigger buying pressure from retail traders. At this same point they would begin to sell into all that buying pressure, and then the market instantly turns to the downside. This is the central reason many retail forex traders consistently enter the market at exactly the wrong time. The unfortunate part about this is the fact that this information is actually the most powerful thing the banks give us, but only if we open our eyes to it. The manipulation of price tells us what position they have been accumulating and thus tells us the direction they intend to drive the price. I urge you to look back at all large market moves. Before most every move in the forex market you will see a tight range bound period that is accumulation followed by a false push in the opposite direction of the trend.
Distribution/Market Trend: After they have accumulated a position through the standard tight ranging market, banks will often create a false push that we just discussed which is manipulation. This false push is an extension of the accumulation period as it allows them to finish entering the rest of the position they had been accumulating. This as we just discussed is the reason so many forex traders enter the market at exactly the wrong time. If however we know the tricks they use we can avoid being a pawn of the banks manipulation, and instead profit from it as they do!
If we have correctly identified which direction they have manipulated the market we can then understand which direction they intend to push the price. This is called the distribution phase of the market, and is seen visually as a market trend. Again this market trend comes only after the banks have finished accumulating their position through tight range bound price action as well as manipulation. Hands down this is the easiest area for us to profit from but only if we can properly identify the first 2 steps in the process. Through this article I have marked out this 3 step process on a series of charts. New concepts can be hard to understand with only words and therefore I believe the charts should serve you well in the learning process. As you examine these charts you should be identifying the 3 stages of the bank day trading strategy.
Putting Forex In Perspective.
Bottom line is this forex trading strategy is no doubt very different than what you have heard before. Realizing the chart is a false manipulation of prices and learning to read the intention behind the moves will take practice. Anything in life that is new takes time to learn and this will be no exception. However, the potential reward of being a profitable forex trader is massive and in our opinion unmatched! Having the freedom to do as you like, and the money to support that freedom is something forex trading offers to all of us, but only if we are willing to work for it. Everyone reading this knows most traders fail. Everyone reading this knows the general ways most trade. Therefore if you are using a forex trading strategy used by the masses I strongly urge you to give some serious thought as to why you feel the outcome will be different for you? At some point we all need to realize that maybe it’s not the tens of thousands of retail forex traders that are failing, but rather maybe it’s the strategies that are flawed to begin with. Therefore I again urge you to take in this free information, give it some thought, and apply it in your trading! I say this not to offend anyone but rather in a sincere effort to get everyone reading this thinking about the facts. Either way I sincerely wish you all the best and I truly hope I can serve you in your progression as a forex trader.
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25 Comments.
Dear , Sti and Ch.
That is the most inteligent aproch to FX market –
To learn the rules of the game , you have to climb on the tower platform.
and not through keyhole into door .
THANKS. Verifies what I’ve known for a very long time. As I always say, trading is not rocket science. All sure wins are obvious patterns on the chart. There is a ranging period travelling in a well-defined channel, a retracement to an indicator (your broken line looks like the 21 SMA to me) and a sudden push forward as it breaks through a pivot line. You know it goes a long way when the resistance is broken. If you’re not sure where it’s going to end, employ a S/L to protect a small part of your profit. You can do this when you position yourself well. The worst that can happen is that the fluctuations will hit your S/L but you still exit at a profit. There are other patterns you can employ, but if you exploit this one thing over and over again, it’s not impossible to double your equity over and over, week after week! Ranging to breakout happens in the market ALL THE TIME.
Glad to hear you do well with this. Yes “ranging to breakout” does happen all the time…I would re word that as “accumulating to breakout” as someone is accumulating a position through these periods. The key is understand what is being accumulated…and thus which direction you should be looking for the manipulation.
very very useful information…i have started trading not so long ago… been trading using nothing but instinct so far…managed to get some good profit…these couple of days i have been reading the information here and i must say it really makes sense compared to all the other complicated things out there… i am still yet to fully understand this process.. i can recognize these trends, but unfortunately a bit too late…would love it if you can give some insight on how to recognize these effectively… 🙂
-A happy newbie trader who likes what he is seeing on this website –
Hello there! I know this is kind of off topic but.
I was wondering which blog platform are you using for this site?
I’m getting fed up of WordPress because I’ve had issues with hackers and I’m looking at alternatives for another platform. I would be great if you could point me in the direction of a good platform.
I sent you an on how to improve your security with wordpress. Our site is a WP platform and since we have improved our security we haven had much problems with hackers. Good luck.
This makes a lot of sense. You may have mentioned it somewhere, but what time frames were being used for the charts provided? Are there specific ones that the phases should be looked for using? Thanks.
We use the 15 minute time frame for entries but also look at the hourly charts to build a bias for the day. If its clear we look mainly for signs in that direction otherwise we look for the clear manipulation at the high probability levels we als get from the hourly charts.
what moving averages do you apply on charts? and what do they do with regards to your trade confirmations?
It is the 200 EMA (Exponential Moving Average) on the M15 time frame. There is also the 800 EMA showing us where the H1 200ema is on the 15 minute chart.
ok, where to book profits, is there any concept of booking profits ? and similarly when 200 ema breaks above then what we have to do ? sell on every candle high breaks ?
Just watching the course would do you no good. This is why traders fail. Its like learning to fly an airplane by reading a course or learning to do brain surgery by reading a course and watching some videos. When I learned to fly an airplane I had an instructor that spent the first 20 hours of flight time with me before I was able to solo. This is the same in forex. The course is important just as it is in learning to fly, but the most important part was having the instructor sitting in the right seat actually SHOWING me how to do everything. This is the same when learning to trade…you need someone in the “right hand seat” actually teaching you how to do what was taught in the course.
really good article !! very interesting…
how much trades do you usually find per day /week ??
The amount of trades we have each week varies. If you go look under the Recent Trades tab on the site you will find the last 6 months of trading results. Each post has a video for every month. Remember this is on just the EUR/USD and GBP/USD…the strategy can however be traded on all other pairs and in fact other markets as well. Therefore the amount of trades you can get each month can vary wildly based on the amount of pairs you trade.
Any particular time to track the movement?
We only trade from 2-6:30 AM Eastern and 8-12:30 AM Eastern. Since we are looking to track banking activity we want to trade during the most active times when the highest liquidity is being traded.
Look for the first close outside the Asia range on the M15 time frame. Put on 2 lots/minis/micros and take one off at 20 pips, letting the rest run. If the first move was a fake, you nearly always get 20 pips in the fake direction, before price reverses into the intended direction. Same method with 2 lots.
If the initial move was the right one (which sometimes happens), then you get 20 pips + the rest:-).
Is your strategy suitable for intraday trading.
Yes, this is an intra-day trading strategy.
The 3rd chart in this article, the one with the 120 pip downward market trend, shows two boxes labeled “accumulation”. Between those two boxes is a price dip and then the price returns to the accumulation range. The second time it leaves the range it is a price spike and this article labels that as the “manipulation” signal to take a short position. My question is how is the first dip not to be miss-interpreted to be a manipulation that would represent a buy signal? Is there something obvious in the chart I’m missing that I should use to rule that out?
If the retrace is less than a 70% retracement of the previous push then the cycle is still considered valid.
Thanks a lot sir for your magnanimity in this handout. You are one of the few most sincere and great Forex teacher I have came across on the internet in the recent times. The information you provided here is equal to none and we appreciate you for that and remain eternally grateful to you!
Thanks for the kind words and I’m glad you enjoyed the article. All the best in your trading!
Greetings sir , Is this still applicable ?
Applicable to what, forex? If so then yes, that is the market we trade. If you have any other questions, feel free to send them via the ‘Contact Us’ page in the main menu.

Making money in forex is easy if you know how the bankers trade!
How to make money in forex?
I’m often mystified in my educational forex articles why so many traders struggle to make consistent money out of forex trading. The answer has more to do with what they don’t know than what they do know. After working in investment banks for 20 years many of which were as a Chief trader its second knowledge how to extract cash out of the market. It all comes down to understanding how the traders at the banks execute and make trading decisions.
Why? Bank traders only make up 5% of the total number of forex traders with speculators accounting for the other 95%, but more importantly that 5% of bank traders account for 92% of all forex volumes. So if you don’t know how they trade, then you’re simply guessing. First let me bust the first myth about forex traders in institutions. They don’t sit there all day banging away making proprietary trading decisions. Most of the time they are simply transacting on behalf of the banks customers. It’s commonly referred to as ‘clearing the flow”. They may perform a few thousand trades a day but none of these are for their proprietary book.
How do banks trade forex?
They actually only perform 2-3 trades a week for their own trading account. These trades are the ones they are judged on at the end of the year to see whether they deserve an additional bonus or not.
So as you can see traders at the banks don’t sit there all day trading randomly ‘scalping’ trying to make their budgets. They are extremely methodical in their approach and make trading decisions when everything lines up, technically and fundamentally. That’s what you need to know!
As far as technical analysis goes it is extremely simple. I am often dumbfounded by our client’s charts when they first come to us. They are often littered with mathematical indicators which not only have significant 3-4 hour time lags but also often contradict each other. Trading with these indicators and this approach is the quickest way to rip through your trading capital.
Bank trader’s charts look nothing like this. In fact they are completely the opposite. All they want to know is where the key critical levels. Don’t forget these indicators were developed to try and predict where the market is going. The bank traders are the market . If you understand how they trade then you don’t need any indicators. They make split second decisions based on key technical and fundamental changes. Understanding their technical analysis is the first step to becoming a successful trader. You’ll be trading with the market not against it.
What it all comes down to is simple support and resistance. No clutter, nothing to alter their trading decisions. Simple, effective and highlighting the key levels. I’m not going to go into the ins and outs of where they actually enter the market, but let me say this: it’s not where you think. The trendlines are simply there to indicate key support and resistance. Entering the market is another discussion all together.
How to make money in forex?
The key aspect to their trading decisions is derived from the economic fundamentals. The fundamental backdrop of the market consists of three major areas and that’s why it’s hard to pin point currency direction sometimes.
When you have the political situation countering the central bank announcements currency direction is somewhat disjointed. But when there are no political issues and formulated central bank policy acting in accordance with the economic data, that’s when we get pure currency direction and the big trends emerge. This is what bank traders wait for.
The fundamental aspect of the market is extremely complex and it can take years to master them. This is a major area we concentrate on during our two day workshop to ensure traders have a complete understanding of each area. If you understand them you are set up for long term success as this is where currency direction comes from.
There is a lot of money to be made from trading the economic data releases . The key to trading the releases is twofold. First, having an excellent understanding of the fundamentals and how the various releases impact the market. Secondly, knowing how to execute the trades with precision and without hesitation. If you can get a control of this aspect of trading and have the confidence to trade the events then you’re truly set up to make huge capital advances. After all it is these economic releases which really direct the currencies. These are the same economic releases that central banks formulate policy around. So by following the releases and trading them you not only know what’s going on with regards central bank policy but you’ll also be building your capital at the same time.
Now to be truly successful you need an extremely comprehensive capital management system that not only protects you during periods of uncertainty but also pushes you forward to experience capital expansion. This is your entire business plan so it’s important you get this down pat first.
Our stringent capital management system perfectly encompasses your risk to rewards ratios, capital controls as well as our trade plan – entry and exits. This way when you’re trading, all your concerned about is finding entry levels. Having such a system in place will also alleviate the stresses of trading and allow you to go about your day without spending endless hours monitoring the market.
I can tell you most traders at banks spend most of the day wandering around the dealing room chatting to other traders or going to lunches with brokers. Rarely are they in front of the computer for more than a few hours. You should be taking the same approach. If you understand the technical and fundamental aspects of the market and have a comprehensive professional capital management system then you can.
From here it just takes a simple understanding of the key strategies to apply and where to apply them and away you go. Trust me you will experience more capital growth then you ever have before if you know how the bank traders trade. Many traders have tried to replicate their methods and I’ve seen numerous books on “how to beat the bankers”. But the point is you don’t want to be beating them but joining them. That way you will be trading with the market not against it.
So to conclude let me say this: There are no miraculous secrets to trading forex. There are no special indicators or robots that can mimic the dynamic forex market. You simply need to understand how the major players (bankers) trade and analyse the market. If you get these aspects right then your well on the way to success.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.
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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

How to trade forex with banks

This is how it works. Price is always moved to the level with the most stop orders. Either stop loss, buy stop or sell stop. In order to move the price up someone has to sell at first so that they can buy and move the market up. Sometimes it may be harder to notice, but that is just because it can not be done in too obvious way and they have to accumulate the positions over the time. This will appear as a range bound market.
In this article I will show you the examples of how those stop orders are hit and where they are most often placed by traders. In next article I will concentrate on how to use this to your advantage and how to place trades knowing what the market makers are actually doing.
I will show you six most common setups that are used. Some of them you will see more often than the others. There are mainly two groups of these setups, first one is when the stop is used above the breakout candle, and the second one is when the stop is placed above the swing high. I have illustrated only bearish setups, opposite would hold true for bullish ones.
Lets start with the most classic one. This is something that you will see very often. We have to look for an impulsive move first. It will mean that the smart money has made their initial move. Now we have to wait for a pullback ( the less the better ). Once new swing high has been established many stops are placed above this level expecting for a further price decline. As we can see things don't go as planned and pair slowly recovers. It even manages to go above the swing high. Lot of buy stop orders are waiting to be executed as traders expect an uptrend once new high established. What happens next is obvious, price continues to fall after banks have successfully triggered all stop orders.
Next one is one of my favorites. In the chart image that I have attached below we can see three different cases of stop loses being hit. It all happens when a candle closes below a previous low. Psychology behind this is really simple. Once we have a candle that closes below the low we anticipate continuation of a down trend. Therefore we place a stop above the high of this candle and wait for the market to continue to the downside. Banks see those stop orders and of course they go and take them out and then push the price back down again. This is happening across all the time frames. Whenever looking at H4 charts we have to take in consideration that not everybody is using the same charts and therefore H4 candle high on somebody's else chart could be at a slightly different level.
Next setup is based on the same lower low or higher high principle. Mostly observed in trending market conditions, however it can also be seen when market is about to reverse. What happens here is very simple. Traders place sell stop orders below current low expecting the price to go lower. And of course stop loss level will be just above recent swing high. It repeats itself over and over again. Sometimes stops will be taken out even two or three times. It can be few pips or more than that, it will always depend on how many stop orders are placed and at what level. After stop orders are hit, pair continues on its way to the down side.
The rest of the setups will be similar to each other and will show few variations of what happens once the trend line is broken. This one illustrates the most common scenario. Price closes below the trend line and traders place stops above the high of this candle. What happens next is not hard to guess. Price goes down a bit and then quickly shoots back up and executes all the stop orders. We don't want to see price to drop too far after the initial break out as in this case most of the positions are closed as a profit and price returns to initial SL level buy other reasons which we are not concerned about at the moment.
In the chart below we can see how trend line is clearly broken. Does not matter how you draw them, here it is obvious that even two different ones don't hold as a support anymore. However this is not followed by a sell off and price continues to climb. It bounces off of the new resistance and goes down a bit before smashing through the recent highs on the chart. When these manipulation occur, very often you will see that price is definitely forced there with a reason. In this case we have both buy stop orders initiated by buyers who thought that uptrend will continue and by sellers who had their stops placed just above the newly established highs. And again we can see that pair steadily loses its value.
And finally the last one. This is not as common as others, but knowing this would still be helpful. What happens here is simple. Prior to falling through the support, price slightly bounces up and only then breaks through. This creates a little swing high which is then used as a logical level for SL placement. And we don't have to wait too much to see this level violated. Most of the stops are cleared and pair continues its course.

How to Know Where Banks are Buying and Selling in the Forex Market.
1) Low Risk : Entering at or close to the turn in price means you are entering a position in the market very close to your protective stop. This allows for maximum position size while not risking more than you are willing to lose. The further you enter the market away from the turn in price, the more you will have to reduce position size to keep risk in line.
2) High Reward (profit margin): Similar to number one above, the closer your entry is to the turn in price, the greater your profit margin. The further you enter into the market from the turn in price, the more you are reducing your profit.
3) High Probability: Proper market timing means knowing where banks and institutions are buying and selling in a market . When you are buying where the major buy orders are in a market, that means you are buying from someone who is selling where the major buy orders are in the market and that is a very novice mistake. When you trade with a novice, the odds of success are stacked in your favor.
Forex bank trading strategy.
So how do we time the market’s turning points in advance? It all begins and ends with understanding how to properly quantify real bank and institution supply and demand in any and all markets. Once you can do that, you are able to identify where supply and demand is most out of balance and this is where price turns. Once price changes direction, where will it move to? Price moves to and from the significant buy (demand) and sell (supply) orders in a market. So, again, once you know how to quantify and identify real supply and demand in a market, you can time the market’s turning points in advance, with a very high degree of accuracy.
To better understand how to do this, let’s take a look at a recent trading opportunity that was identified in our online graduate trading program, the Extended Learning Track (XLT) on March 25th. The XLT is a two hour live trading session with our students three to four times a week. During the session shown below, we identified an area of Demand in the EURO (highlighted in red) / 1.31975 – 1.32065. You can also see that Demand zone on the chart, the two lines creating a “buy zone”, allowing us to apply our simple rules for entering a position. This was an area of Bank/Institution Demand for a few reasons. First, notice the strong rally in price from the origin of that rally (the Demand level). Also, notice that price rallies a significant distance before beginning to decline back to the Demand level. These two factors tell us that Demand greatly exceeds Supply at this level. The fact that price rallies a significant distance from that level before returning back to the level clearly shows us what our initial profit margin (profit zone) is.
These are two of a few “Odds Enhancers” we teach in our graduate program. They help us quantify the bank and institution Supply and Demand in a market which is the key to knowing where the significant buy and sell orders are in a market. The plan with this trade was to buy if and when price declined back to that area of Demand. This trade was high probability but how do we know that? Well, being very confident that there is significant Demand at that level, this tells us that we will be buying from a seller who is selling at a price level where Demand exceeds Supply. Selling after a decline in price and at a price level where Demand exceeds Supply is the most novice move a trader can take. These are “retail” sellers selling where “banks and institutions” are buying. The retail sellers are selling with the odds stacked against them which means they are stacked in the buyer’s favor like our XLT members in this trade.
As you can see below, what happens next is price declines down to our predetermined Demand level where Banks and XLT members buy from sellers who are selling at extreme “wholesale” (Demand) prices. They are selling after that big decline in price and into that price level where Demand exceeds Supply.
Notice that price “declined” (down trend) to our demand level where we were willing buyers. Every trading book would say we are breaking the most important rules in trading by buying under those circumstances. Well, how many people do you know who read trading books that make a consistent low risk living year after year trading? I would be surprised if you knew one so be careful with what you read. The trading book version is conventional thinking which has you buying high and selling low so be careful. Don’t take my word for it however, read a trading book and ask yourself if how that book is teaching you to buy and sell in markets is the same as how you make money buying and selling anything in life. If there is any difference, good luck trying to profit from the information. Like anything in life, there is the book version way of learning to do something and the real world way. All we are doing at Online Trading Academy is simply sharing real world trading with you. We are not trying to reinvent the wheel. How you make money buying and selling anything in life is exactly how you make money buying and selling in markets. I learned reality based trading during my years on the trading floor of the Chicago Mercantile Exchange.
Shortly after reaching our demand level, offering XLT members a low risk buying opportunity in the XLT, price rallied and met the profit targets. This is market timing and while it does not guarantee that each trade will be a profitable trade, it does offer the lowest risk entry, highest reward with that entry, and highest probability of success. How high your winning percentage is with the strategy depends on your ability to identify key bank and institution supply and demand levels like we do at Online Trading Academy.
I sometimes hear people say “I don’t want to try to pick market tops and bottoms, I am only trying to catch the middle of the move.” They are trend followers and say that as if doing that is somehow easier. If price is already moving higher for example and you want to buy, where do you enter, where is your protective stop, what is your risk / reward and so on… I would argue that catching the middle of a move and making a consistent low risk living is harder than proper market timing. I am not suggesting the trend is not important. I just want our students to be in the market well before the trend is underway. The longer we wait to enter, the greater the risk and lower the reward. Another thing I hear people say so often is this: “I wish I knew where the Banks and Institutions were buying and selling.” Every time I hear this I say: “You can see where they are buying and selling, if you know what to look for on a price chart.” It all comes down to supply and demand, just like buying and selling anything else in life.
This information is written exclusively for educational purposes. It does not contain recommendations or calls for the purchase, sale or storage of any financial instruments. Trade and investment are traditionally associated with a high level of risk. The author expresses his personal opinion and is not responsible for any actions of the reader. The author may or may not be involved in the trading of the mentioned financial instruments. Future results can be very different from those described here. Profitability in the past does not mean profitability in the future.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.