In this episode, we discuss retail trading vs institutional trading and how to identify what the big money (the banks) are doing.
Disclaimer: “I am not a registered investment advisor or securities broker dealer. These are my thoughts and are not advice. Seek your own education or you will lose money.”
#2 Five Laws of Gold - Richest Man in Babylon
"Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field."
Let your money labor with the big banks. More profitable an employment than you trying to guess or following the news.
Banks/institutions vs retail traders/investors
The very profitable vs those who struggle for profit
Money (in most cases) is not created, it’s just transferred.
Going against the market movers opens the opportunity for your money to flow to them.
Open orders
-Banks can’t buy or sell all the shares they want all at once.
-Iceberg: Big order, but only small percentage revealed at a time
Zig zag rise or fall WITH VOLUME are footprints
-You’ll never know who it is, but volume is a window into possible open orders.
They’ve perfected the ability to extract money from the market. They always want a discount.
-Learn to read charts. Always stack the odds in your favor. No one indicator or pattern is 100%. Once you have an idea, use other tools to help increase the odds...confirmation
-If I see a big candle following a pattern WITH big volume, I’ll then check my indicators to confirm momentum. If these check out and the broader market sentiment supports the move, that’s when I consider following the institutional footsteps
Quote of the week
“People are judged by their results, not the quality of their excuses.”
WHAT’S THE KEY: Learn → test → “perfect” → Scale up = $$$
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Learn more: Stock Market Trading Course: https://gum.co/VxJLm
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