This is the number-one Forex strategy out there, because if you don't trade by 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 does 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 still had 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 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? Of course you would, 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 banks 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, Citi, 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 too, 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 our money is sitting in every currency.
Not 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 short 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 that 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 isn't gonna move up and down and we can just Take our time here now So what ended 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 did you do? Did you hang on to it? Shouldn't have.
Ai yi yi yi yi yi, 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 sit You have lost.
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 experience 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 some money back from these people too 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 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 were the big banks 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 Swissy Will not drop below 1.
This was called a “peg”.
Just so just imagine on a chart a line was put right there at 1.
20 – 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 down is not one of them And so it was a 70 to 1 long to short.
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 said “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 Swissy 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, let's move 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's 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 banks Because price eventually did come up over time, but the damage was done You know 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 IG 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 net 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 where price is 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 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.
Traders said, “Okay.
We give up.
We're all gonna go short now.
” The banks 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 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 or 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 gets longer with a couple little wins Blackjack Theory wins in the middle.
I started with the Aussie Dollar 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 Efron 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 banks 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 banks to deal 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 banks.
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 where 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 shit 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 on 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”.
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.
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