It’s important to note that I’m NOT saying smart money targets retail traders, as they are only a tiny percentage of the daily forex market volume (6% last time I checked). I focus on how it affects retail traders not because they are the focus of smart money, but rather because that is who will be reading this article.
Unfortunately, retail traders all use what I term as reactive trading strategies. Reactive trading strategies, unlike those that are predictive, tend to get caught up in this short-term manipulation.
To explain it another way, when the market moves up, most strategies create buy signals, and a move down creates sell signals. This is the core idea you’ll see in any strategy you’ve traded. Why is that a problem you ask?
This is a problem because smart money will often create or allow a rising market to occur, creating further buying pressure from the retail market they will sell into.
As the price turns down, all the traders they trapped long get stopped out only fueling the move to the downside further. The opposite would be true for a move up.
Below is a very short list of reactive trading strategies that work out just enough to make you think they actually work, while actually being a tool of Smart Money.
Ho do I trade with Smart Money?
I have provided a link below to out Forex Course. You will find a detailed description of everything that is included in the lifetime membership via in the link below.
Sterling
Sterling a lot of people think Steve Mauro was the first person who taught bank manipulation and everyone else copied his template and his way of teaching is that true… was he the first to teach it..c
Hi,
Thanks for the question. I have provided a link below to a video on did on market manipulation and stop runs back in 2010. This was YEARS before anyone else was teaching market manipulation.
https://www.youtube.com/watch?v=9KMkkx4OfmU&t=
-Sterling
I read the article on forex manipulation by the big boys.But i don’t quite what the advice is.can u pls carify
I’d be happy to help, feel free to shoot us an email with any questions you have.
i have leart so much thank you
Great, glad to hear it!
So basically, do opposite of what the position of the trend is?
No, that isn’t accurate. First, how are you defining trend? Second, you need a valid manipulation points to trade WITH the trend. Third, I need a valid stop run of that manipulation point to trigger the entry.