Best FX Trading Strategies (THE Top Strategy for 2018)
This is the number-one Forex strategy, out there because if you don't trade buy it or at least understand, it you're, finished. And. Here it is boys and girls this is VP and this, is the most important, video, I am probably ever going to make for you because. This is what the 99%, doesn't. Know and the 1% does you hear me talk about the 99%, those. Forex. Traders that either lose, money. Breakeven. Or just barely eke out a profit most. Of them have no idea what this is but I can guarantee you every top trader that I know knows. Exactly, what this is and they trade by it so, in this video I, am going. To reveal to you the number one thing you need to know about trading. Forex and. Sorry. To. Most of you it's not some. Easy. Little tip or a hack or some cutesy, little indicator, that's. Not what this is if you came looking for that you, are a losing, forex trader and you're probably always going, to be a losing forex trader because you're not worried about core concepts, you're, worried about chasing, rainbows you're worried about finding that one little trick or hack that's gonna somehow get, you, to. Beat a four to five trillion, dollar a day market, how. Ridiculous, is that even sound so. No it's nothing like that it's actually far more important, and then I'm going to show you how it all goes down and. After. I tell you what. This is you may not even believe it exists. To. Some people who are lazy and, don't. Think things through they're gonna think right away oh this, is some. Kind of conspiracy this doesn't really happen oh no it does and it happens every day over, and over again and I'm gonna prove it to you in a couple different ways now the reason most people don't know this is not even really their fault you. There's, not much information out there you almost have to have somebody to, come out and tell you about it that's why the 99%, doesn't, know but. I had to have it told to me and I did by a guy, who taught. Me a lot about Forex early on some of you guys might actually know who this is he goes by inner circle trader ICT his, name was Michael. Really. Smart, trader a very, eccentric. Trader. He. Would fly off the handle often. His. Twitter feed was great, fun back when it existed but he's, very reclusive right, now, but. He had been trading for 20 years-plus, at. The time traded for Wall Street did, all that and he. Explained this concept, to me and then I started a few questions left, open so, I did some deeper study and got those questions answered and now. I. Had. Figured out something that most people have never learned. In their entire lives and honestly. Had I have not learned this I might. Not be talking to you right now because I, don't think there's any way I could have gotten out of that 99 percent myself. But. I did and here we are and so now I'm gonna pass that knowledge down to you so let's do this now. My question to you is who, controls price. Who. Makes price go up and down on any currency pair in the forex market it's, not us it's, not like stocks to where you have enough. People flood into a stock or enough people leave, a stock that's gonna make the price go up or down no. It's, it's. Somebody else and, it's. Us versus, them we as traders, are, fighting. This big bad entity. That. Is making price go up and down and is taking our money the. Number one Forex strategy, in the world is, to. Know your, enemy and why. Would you not do this if, you, were a top fighter and, you. Had a serious. Prize fight tomorrow. But. Would you really just not study. Your enemy at all not. Know what they do what their tendencies, are what they like and what they don't like and of course you would die you would know them better than they know themselves you. Would dissect him inside, and out that's why you're as good as you are if you. Were a top football team you, know you have game film on every, opponent out there and you, study it so, you know exactly how to go beat them but, in forex somehow we don't, do this even, though there is absolutely. In US versus, them scenario. Going on every. Single day but, like I said most of you don't even know that there is an enemy out there and who it is so, let, me go ahead and tell you right now, our. Enemy, is what. I refer to as the. Big banks. There. Is something. Called interbank, and. Interbank. As a whole is responsible, for making price go up and down but, there are four, to five world, bank's, out there that. Control over, 50% of, interbank. So it's pretty much their call and boy, do they love spot, forex, traders they, get to take our money over, and over and again every, single day. So if you're kind of wondering who these banks are for. The most part these. Are the main players as far as I know is, definitely, Deutsche, Bank City. JPMorgan. Chase HSBC. Definitely, those four over. The last couple years or might have been some Chinese banks, moving. Into the game but I do know it's the top four for sure and boy, is it good to be king because here's what they do.
So. For starters they need liquidity, to make price go, up and down and they need extra. Money so they can put it back into the market and decide. Whether the price of any currency pair is going up or whether it's gonna go down now where do you think they get that money from, us. Yeah, it's because we are a constant. Replenishing. Cycle. Of money, and this. Just keeps happening, every. Single day and. If you ever lose money in your account where do you think it goes it. Goes to the big banks and they have ultimate, control that's. Pretty scary but. I'm gonna give you a sneak preview of how, you beat this and the. Way you beat this is to. Not be popular. You. Do not want to be the popular, kid in this situation, because the popular kids get picked on over. And over, again in, the forex market it's the opposite, of high school but you really don't wanna be a nerd either because everybody knows who the Nerds are - you want to be that guy who's completely under, the radar that almost nobody knows even exists, those. Are the people that sneak away with the money at the end of the day as far as forex, traders go but let's talk about what the banks do a little further I'm gonna tell you now how they actually do what they do they. Have a gigantic. Advantage because, they, wake up every morning and they, can see where. Uh where our money is sitting in every. Currency now you individually. But collectively as. A whole so, they can get up and look at the Euro for example, and know. That. Out of all the money being, traded, in the Euro right now, for, example 60, percent of that money is going long and 40% of that is going short that's really, good to know but, it doesn't just stop there they, also know where the orders, are if there are long, orders sitting above price or if there are short orders sitting below price and how, big those orders, are. So. They not only can see the present they. Can see the future, yeah. Must, be nice because. Now the decision is easy all, they gotta do is find out where the. Popular kids are where the majority of the money is sitting and just take price the other way, because. Those people who are going long are gonna give up and relinquish. Their money over, to the banks over time now. The traders who are going shorter and have a chance of winning but they might still screw, that up you, know a lot most traders have terrible, money management so, they're gonna take everybody. Who went Long's money and some of the people who went shorts money it. Is good to be king so let me I want to break this down even further because I want to make sure you know exactly how this goes down let's do kind of a real-life. Scenario. Here, so in this, example we're gonna take the pound dollar and let's. Just say there right now. 65%. Of all the money out there trading on the pound dollar, is long, and 35%. Is short and in this exercise you, are actually going, long you, are one of the popular kids not where you want to be but you you. Know you don't get to know what. The banks know and, you. Have decided to go long, let's go to a chart, all right so pound dollar 15-minute, chart I am shooting, this on the weekend, so, it's good you know price is gonna move up and down and we. Can just, take. Our time here, now so. What. End up happening on the 15-minute chart is you. Have this consolidation period where banks were just trading with each other slowly.
Getting A read on where the money was going and they. Figured out that 65% was going long. 35%. Was going short in this. Exercise remember, you are going long. So. Surprise. Surprise here's, what happened. Banks. Take price short like, I said big surprise there so we go back to our chart and. Went. Up a little bit just to get you excited and. Down. We go, now. You. Start losing money you. Have just lost 50 pips in a very, short, amount of time what. Do you do well either prices, already hit your stop-loss and you've already lost the trade or at. This point you're like well I think I've lost enough, I'm gonna go ahead and cut bait and go look. Somewhere else or, you're saying well let's let's ride this thing let's see where it goes I still have faith that it's gonna come back my way and then. It does. Because. Price just doesn't go straight up or down price moves and waves so. We see it here. Get. A nice little retracement, now, you're not down 50, pips let's see what you're down. Well. You were in the 50s now okay, not so bad 30. 35 pips now, you, have another decision to make do, you, take, a loss but it's a smaller loss so you're feeling okay about it or, do you still keep, the faith and let that thing come back to you. What. You do juh. Hang on to it. Shouldn't. Have oh, yeah. Yeah yeah yeah I look at that. All. The way down and. Towards, the end of the day it. Didn't get better and that's. Where we currently said, you. Have lost. Close. To. 145. Pips in, a. Very short amount of time guys. I mostly trade off the daily chart and I, don't have losses like this and whether, you did or not a lot. Of traders experienced, this phenomenon every. Single day and it all started. Because. They were on the popular side and that's. Free, money for the banks so, at some point whether. It was a little or a lot traders. Give up close, their positions out and relinquish their money to the big banks and then. This phenomenon, just keeps happening over, and over again, now. If you just happen to be short you probably did pretty good it's kind of the same scenario really banks took price short you started making your money once. That wave came back up you might have taken some profit which would have been a good move or you. Just let it ride which, isn't, a very smart, move but it benefited. You this time, but, believe, it or not you. Just made, 145, pips in a very short amount of time if you kept that trade, but. A lot of people. Never. Take anything, off the table they just let it ride and this. Was the weekend you, guys know what happens when pairs gap up or down they, could lose all 145. Of those pips tomorrow. As soon, as the market opens up again it doesn't, happen all the time but it does happen a lot so, banks not only crush. These people they're. Actually gonna get at getting some money back from these people to, the. Great double dip now. Look this will not happen all the time every, once in a while you got to give the popular, kids a win and this. Is known as the, blackjack, theory so. You, can't just let people lose, all the time you have to let that dumb money get a win, so they keep playing you, want them to feel good about themselves you, want to feed their ego you want to tell them that what they just did was. A really smart move and they're really really onto something because. You know it and I know it when you get a win based. On something that you did whether it's something you put on your chart whether it's a piece, of advice you followed, whether it's a, news, event you were keen to you. Feel so smart and it's. Such a euphoric, feeling you. Will actually, dismiss. And write off the next five to ten losses, because. You, are so self validated, in that one moment that, you figure it's just a matter of time before you're right again casinos. All know this and, the. Big banks know this too and they, do it just often, enough to keep that dumb money around forever and ever and ever and guys. This, is a good thing because. I'm gonna show you how not to be, dumb money I'm, gonna show you how to be under the radar and this, is how we win not by beating, the big banks you can't beat the big banks but, you can be part of that minority, that they allowed to win over, and over again and. The. Way you do that is simply by not being in the up being, on the other side by, not being the majority and there's ways to do that we'll talk about it but first off I need.
To Prove this actually. Happens because this is the point where a lot of you, think. That I'm. Just talking high theory this isn't something you can actually see. Manifest. Itself over and over again it actually is and there's a couple ways why first, off I'm. Gonna talk about the Euro Swissy, crash because never. Was. The, big never where the big bang such so obviously, in play then, when the Euro Swissy crashed back in 2015, I'm. Also gonna show you a little-known, tool. That you can go access. Right now and it, shows you how every, time traders, go one way price, goes the other way so. Let's go visit that first one now I love talking about this the Euro Swissy, crash because it is so. Fascinating. So here's what happened, the. Swiss National, Bank said, a, long, time ago that the Swiss eesh, will not drop below one, point to Europe, this, was called a peg, just. So just imagine on a chart a line was put right there at one point - on the. Euro Swissy and the, Swiss National Bank said price will never drop, below this, so. Traders. See that and they, all think they're slick and clever and. Everybody. Put. Long positions, out on the Euro Swissy because, if it can't go below that it can only go up right, there's only one of two ways it can go and downs not one of them and so. It was a 70. To 1 loan - sure I've never seen anything even close to, that ratio, so. What it means is for every one trader who was going short that. Actually believed that it could fall below that peg there. Were 70. Traders, out there that. Were going long, they, couldn't lose right it was only how much they were going to win so. Knowing. What you know now and learning, what you just learned. What. Do you think the banks did do. You think they just shrugged their shoulders and black well we're, just gonna give these people all their free money or, do. You think they, saw all that free money for themselves, sitting. Out there and all. They had to do was. Get rid of that peg. What. Do you think happened. Yeah. Crash. That. Peg got removed and. To. Say price went down hard would, be an understatement let's go look at it so. You ever seen a chart like this I. Don't. Think I have this is pretty crazy look at all these little tiny candles, because price. Did move up and down a little bit but in a very small range but because of that peg the. Euro and the Swiss e were so highly correlated that you, know price really didn't move much at all and let's show you where the peg was. Right. About Smoove, it up a little bit. Right. About, there, and. So. Price did test out this peg but it just kept bouncing, off of it and, so. That made people feel really confident, the. Price was never gonna drop below it so this is why, yeah that's seventy to one long. Now. To. Convince the Swiss National, Bank to. Just up and get rid of a peg it's not something, you know you and I have the influence to do but. I'm pretty. Sure that. Banks. With trillions, and trillions of, dollars of, capital. If. They all got together probably. Had enough influence. To convince the Swiss National Bank to get rid of that peg and, of. Course traders. Like us aren't going to know when that's happening, or even if that's happening but. The, big banks sure knew and then, goodbye. Peg and. Then. Oh my God, look. At that thing how many pips is that that. Goes over, 2,000, pips and one day. Yeah. Over. 2200. Pips in a. Day. Now. Here's, the scary part if you, were long and you, had a stoploss here for example or here, price. Moved so fast and hard that, most people stop losses didn't, even get triggered, price. Just kept going, and this. Is Forex you, don't. Just go down to zero situations. Like this your. Account goes past, zero and now, you owe, this. Was Armageddon for traders it was a gigantic. Party. A huge, celebration with, high-fives and champagne, for the, bank's because. Price eventually did come up over. Time but, the damage was done you. Must, treat most traders got knocked out of the market altogether and it, wasn't just traders, that this affected when, everything crashed entire. Platforms. Went. Out of business I remember. The one I was a part of fxcm which I loved it was a gigantic. Platform. With, tons. And tons of capital under its belt but, it actually had to get bailed out by. Forex.com. By IG if I remember correctly and then the ripple effect was so, harsh that they, actually had to stop taking American traders and I had to leave, all. Because of one trade on one. Day but, it, was the most obvious thing, ever I was screaming, to anybody, who would listen, do. Not go long if you're long get. Out and yes. I had a short position open at the time, but. I'll. Admit it I got, rid of it because I, got bored and I got tired of seeing that thing bounce along the peg and I never thought it was gonna really, crash either because I've never seen anything like this, I just, knew long wasn't the place to be so, I got rid of my short position about.
A Week before it actually crashed so. You, know win some you lose some I mean that trade would have it would have been life-changing but, you. Know you got to move on so, at this point you might be saying okay that's a one-off example. You know a great story but, this doesn't tell me that this happens over and over again well this, is going to it's. Called the IG. Sentiment, also known as our. Formally known as the fxcm, SSI indicator. And what, it does is I, G is a big, company, out of the UK that has a lot of traders and a lot of money under management and. As. A result, they, can tell you where the dumb money is because they know where their traders are going so if most of their traders are going short it's a big enough sample size to where we can pretty much assume that. Most, everybody else on the planet is starting. To go next short at least and then. They. Have a little they have an actual price chart above, that. Shows you how it affected price over time and I'll, ruin it for you if most people are going short, you. Know price is almost always gonna go long we'll, go to it in a second here and I'll show you how it played out and this, is based on the daily chart I mean this phenomenon happens all the time on smaller charts but you're gonna see how it also happens on the daily chart too and but. Remember the blackjack theory you're not gonna see it happen every single time you're, actually getting a chance to see also where, the banks actually gave the popular traders a little, bit of a win just to keep them in the game so let's go ahead and go to it now so here. We are and, I will link this down below so you can just go straight to it but what you want to do is. Go to the most recent. Posting. And. It'll, take you right there and they're gonna see this table up top I ignore. It it's. Not really a matter of where. Traders. Money, is right now but where it's going, and you'll see what I'm talking about they even do crypto, which. Is kind of dumb because everybody, is still long crypto it doesn't really make much of a difference but let's, go down and I'm gonna scroll past, euro. And. Pound. Dollar and see if I can find the Aussie dollar because that's just the smoothest, example, right now I'd, rather take a look at that. Pass. All the crypto. Like. Sitting go look at this on your own time if you're interested in looking at crypto but we're gonna go to the Aussie dollar and here's how this works, down. Below the red line is the amount of traders, that, are net short and, the. Blue is the amount of traders that are net long and this, manifests, itself over, here when you see a big separation like, this, long. And short. This. Line is going to be very high. To where we see it the other way around and. You get that big gap it's. Going to be very short this is saying traders, are. Collectively. Net short this is going to say traders, are very net long at the time and big. Surprise look. What happens, when they are and when. They are look look where prices, see. Had a bunch of consolidation. Here and as soon as traders all together decide to start getting. Longer and longer price. Immediately. Went shorter. And shorter a, little. Bit of a retracement a little bit of consolidation. Trader. Said yeah we're gonna go even longer now and, the. Big banks said hey, no problem we're just gonna teeth keep taking taking things shorter, and shorter and just take your money every single, step of the way and we're, not gonna reverse course we're, not gonna stop, until, you change your mind and right. There they did look. At that trader said okay we give up we're all gonna go short now, the. Bank said hey no, problem. You. Just gave us the green light to take this thing longer, and longer and, longer and longer, and. You see a little short retracement, right now but I guarantee you until this line goes, up and still traders until, traders start getting net long again this. Thing's not going to have another drop down it's either gonna go back up or it's gonna stagnate, one, of the other but that's just how it works look at that every. Time traders get longer price gets shorter every. Time traders get shorter price. Get longer with. A couple, little wins. Blackjack. Theory wins in the. Middle I started. With the Aussie dog this is the easiest one to read this happens everywhere. Especially on the dollar pairs why. Because. The dollar is the most popular, traded currency, in the world wink. Wink file that away I'm going to talk about that in just a bit if you want to go look at the euro dollar in the pound dollar right now you're gonna notice the same thing it's just gonna be a little harder to read as for your first time ever seeing this I want to mix I wanted to show you something that was really nice and smooth so. That is the IG, sentiment. Indicator in a nutshell. Feel, free to go look at it on your own time I know I skipped over a euro dollar and pound dollar but it's the same thing it's, the same concept I didn't want to go all day on this because I want to wrap this up and I, want to get to the part that you've probably been waiting for ever since I started this video and it's, what you can actually do, about this and my, answer might bum, you out because it's not the sexiest, answer in the world but it really mostly, comes down, to.
What To avoid now. Please understand, this and this is my own quote if you don't know what to avoid first. It really doesn't matter what you do instead if, let's. Say you have a website that, you're trying to make money off of but. It has a ton of viruses, on it you're not gonna do very well until you get rid of those viruses you know it's absolutely. Paramount. That you get rid of everything, that is bringing your account down before. You start to actually build it back up and the same thing applies, here so let's talk about that you. Do not want to be popular, I am going to say it again do not be Zac Ephron, the Zac Efron's, of the Forex world get destroyed. You, need to be under, the radar you. Need to make sure nobody. Sees what you're doing and the banks can't see individually. What you're doing don't worry about that but, there's some things you can do to avoid being, in the majority and one of those things is to stop using the same tools that everybody else uses, have, you seen me put up the Dirty Dozen yet if you. Haven't you're gonna see it a lot most. Of the indicators, and most the price action tools that are out there right now are. Not only really, bad tools overall, but. Everybody. Uses, them so, what ends up happening is, a lot of you end up, all going, one way on the same currency as a result, and then, guess what happens is there, a major price level, or a major resistance line that price is kind of creeping up towards and you just can't wait to trade that breakout, or that reversal, well. Guess what so is everybody else and that's, not a good thing it's a really bad thing so you need to get rid of those tools and just, flat-out don't hang out where the popular kids hang out remember. Like I said before how. Popular. The, dollar is and how, everybody is trading, dollar pairs, well. What would it be like if you just stopped trading them as, far as the eight major currencies, go there's, a lot of different pairs you can trade out there it's, not gonna kill you to all of a sudden just stop trading dollar pairs or do what I do and just trade them a lot less often, then, you do every other pair. Let's, go take a look at something here's, our old pal again the IG, client sentiment, index and, here's. A pair that doesn't, get traded nearly as often as the dollar pairs do the. Pound yen. Now. If I were instead of starting with the Aussie dollar I were to show you this chart, it. Wouldn't make as much sense you. Might still be confused, because. Manipulation. Does not happen, that often in this. Pair look. At it it's. Really jagged doesn't. Make a lot of sense and there's. A reason for that because the, bank's don't have to play around in this pool at all a whole lot because they have the dollar pairs to play with they can make so much money off of that they, can leave pairs like this alone and if you've put together a really, good, trading. Plan and you, have less manipulation. From, the bank's to do with lookout, you can really. Really do some damage here because, worrying about how the banks are gonna manipulate price, is one, less thing you, have to worry about simply. By avoiding where, the popular, kids hang out and being under. The radar so. Stop using the same tools everybody else uses don't. Hang out with the popular kids hang out it's a really good way to stay under the radar and I'm gonna give you a little nugget right here while, we're talking about it that can help you tremendously, but. You might really, hate, my answer and that is, don't. Trade, the news, so. Many of you when big news events come out love. To be in the market try, to catch the. News at the news event result, and then, immediately start trading it it's one of the worst things you can do why. Because. Banks, love news, events, because. At. Will, they, can move price, wherever. They want and they do it violently, and. Rapidly. And you can't even catch up they. Can see where all the orders are sitting and just trigger, all those orders and immediately. Take price one way and as, soon as traders react and immediately. Start taking price the other way it's just like what you saw on the IG, client sentiment index with, the Aussie dollar but, in a very very short amount of time it's. The the, Superbowl it's the, World Cup Finals, all wrapped, up into one every.
Single Major news event, for the bank's it's great for, them and. The best part about it is they never even have to explain themselves they. Can take price wherever they want collect, your money and don't even have to answer for it you, ever get those times we're like really really bad news for the dollar came out but. The price of the euro dollar just, kept shooting downward. You. Know it didn't make any sense at all yeah, it happens all the time and the bank's never have to tell you why it happened, even though they were the ones responsible for, it stay. Out of the news trading. Pool it's a dangerous, pool over. Time it's going to kill your account it's. Vegas Theory too there's. Gonna be some times where we actually make money doing this and it's going to be really quick money and it's gonna feel awesome but. Over, time this is going to get you so. Here it is here is what to do instead I've told you what to avoid, here's. What I want you to do instead seek. Out new ways to trade seek out new currency, pairs don't go for crazy exotics, those, things move way, too crazy. But. You can you can do better than just trading dollar pairs and you, can do way better than, using trend, lines and the RSI, and all the dumb that everybody uses there's so many other ways there's thousands, of trading indicators, for example available, out there how, do I know because I have tested, thousands. Of trading, indicators. Most, of them are terrible but you find a really good one and you find it John just the right setting on just, the right time frame it, is worth its weight in gold. Now you. Also need, to get your money management figured, out because, you, can find really great new ways to trade you can avoid all the bad stuff you. Can find some really great indicators, but if your money management isn't, tight. And most, people's, aren't. You're. Still gonna end up losing and then, once you have all that together put. It all together have a really solid plan in place and just keep using, it over and over and over again you, might be saying well VP these are really vague. Answers. This isn't something I can go do right now well, I'm sorry instant, gratification guy, there is no push-button solution, to anything but, this is the structure, you need to follow to actually. Win in this game and nobody else is gonna lay it out like this and here's, the good news, I have. Found the new ways to trade I, have. Tested all the indicators. My. Money management's, pretty awesome and I have a great plan in place and, guess. Where you're gonna find out all the answers of these questions so you can do it yourself this. Channel, right here on the. Channel and on the blog, step. By step easy. To consume videos. That. Are little by little gonna get you closer and closer to where you need to be and I, do it by talking about the things that nobody else is talking about and showing you the things that nobody else is out there showing you just. Like this video if, you feel like I've given you value by, putting this video together and showing you what I just showed you give. Me a like I don't. Even care about comments, at this point I just want you to see this video I might even turn a comments, off I don't care what anybody has to say about it this is something I want every single person who stumbles across this channel to see but. Now that you've seen it you. Are officially. On your, way hit, subscribe hit. That Bell notification. Make. Sure you don't miss anything, I have to show you cuz I have new videos coming, every single week and they build, on top of each other and we're gonna finally, get you to where you want to be so subscribe, check. Out some of those videos and let's go get it.