🐺SMART MONEY TRADER
The video explains the Smart Money Concepts Market Maker Methodology and how traders are manipulated into losing in the market. The pattern is broken down into the contraction and expansion phases, with the manipulation phase being where most retailers get caught in an emotional trap. The correct way to trade is to accumulate buy positions beneath the value line and to accumulate sell positions above it. The video also showcases successful trades using this strategy in the Discord group.
Understanding the Market: How Manipulation Works
The Smart Money Concepts Market Maker Methodology
If you are a regular trader, you may have heard of the Smart Money Concepts Market Maker Methodology. This methodology is used by seasoned traders to help them understand the market and make better trading decisions. The concept is simple: the banks, institutions, and hedge funds that move large sums of money manipulate the market for their own gain. By understanding their strategies, we can avoid falling into traps and make successful trades.
Ninety Percent of Traders Lose Consistently
According to statistics, 90 percent of traders lose consistently. This is a staggering number, and it begs the question: why do so many traders lose? The truth is that most traders are being manipulated into losing. They fall into traps set by market makers, who take advantage of their psychology and emotions. Market makers use FOMO (fear of missing out) induced trading trickery to make traders act emotionally, causing them to make the wrong decisions at the wrong time.
The Market Is Either Going Up or Down – Buy or Sell
The market is simple: it is either going up or down. This means that there are only two options for traders: buy or sell. Experienced traders know that they have a 50-50 chance of winning in every trade. However, the statistics show that 90 percent of traders lose. This is because they are being manipulated into making the wrong decisions.
The Holy Grail: Understanding the Market Pattern
The key to understanding the market and avoiding manipulation is to understand the pattern. The market follows a specific pattern that can be identified and used to make successful trades. This pattern is known as the Holy Grail, and it allows traders to see the true intentions of the market. By knowing this pattern and anticipating its moves, traders can have an edge over the market maker’s manipulation.
Phase One: The Contraction Phase
The first phase in the market is the contraction phase. During this phase, the price goes into a squeeze, where a simultaneous lower high and higher low occur. This results in a smaller price range, as price starts to get smaller and smaller.
Phase Two: The Expansion Phase
The second phase in the market is known as the expansion phase. This is where the market maker’s manipulation occurs. As soon as the price breaks out of the contraction phase, it starts to move up and down rapidly, forming a box-like structure. This is the sign that the expansion phase is starting, and volatility is coming.
The Value Line: The Market Maker’s Zero Point
As soon as the price whipsaws above and below the box, a value line is drawn out from the center of the box. This is also called the major expansion line, and it is the zero point in the market where the market makers balance their book of business. It is where supply and demand become equal, and the market makers start manipulating the market.
Liquidity Zones: The Market Maker’s Traps
During the expansion phase, the market makers create traps for retail traders. They do this by creating liquidity zones, where stop-loss orders are resting. These liquidity zones are precisely where the mass market is going to make a mistake and where the market makers look to take their entries.
How Manipulation Occurs: The Cycle of Buying and Selling
The manipulation occurs in a cycle of buying and selling. As soon as the price breaks out of the box, retailers immediately think that the price is going up and enter their long positions. This creates a liquidity zone where retailers have their stop-loss levels. As soon as the price bursts out with a big candle, it suddenly reverses, dropping down and liquidating those buyers.
When the price breaks below the value line, it liquidates all those longs and creates another liquidity zone for short sellers. The mass market thinks the price is going down, so they open short positions and set stop-loss levels above the swing high. The market makers then use this liquidity zone to liquidate the short sellers.
This cycle repeats over and over again, and without understanding the pattern, traders will consistently end up on the wrong side of the market. They will buy above the value line and sell below it, losing consistently.
The Right Way: Accumulating Positions
The right way to trade is to accumulate buy positions and beneath the value line and accumulate sell positions above it. This is the opposite of what most retail traders do, and it is the key to success in the market.
Discord Group: Successful Trades Using the Market Maker Methodology
The Discord group is a community of traders who use the Market Maker Methodology to make successful trades. Members of the group share their successful trades and strategies, helping each other to understand the market better. By learning from others who are successful, traders can improve their own strategies and make better trades.
Conclusion: Understanding the Market Is Key
Understanding the market is the key to making successful trades. By knowing the Market Maker Methodology and the pattern of manipulation, traders can avoid falling into traps and make successful trades. The Discord group is a great resource for traders to learn from others and improve their strategies. Remember: the market is either going up or down; it is either a buy or a sell. With a 50-50 chance of winning in every trade, it is up to the trader to make the right decisions and avoid falling into traps.
