How to Trade Forex Like a Bank

it's possible we are it's possible or not we're gonna have a magnificent conversation today and it's all it's gonna be about bank trading but before we begin I'm just gonna make sure that we're actually alive you know just just make a hundred percent thousand percent sure because well you know I like to actually make sure it's hello to you if you're joining us today nice to see you here looks like I'm all connected here to the interwebs and if you're joining me live I'm running the camera by myself today so could be it could be a little bit of an interesting experience we're going to talk about Bank trading today which is a super interesting topic for a lot of people oh look at this we made we may actually be live but not have any audio oh that's good all right well as we go live here just let me know that you can hear me okay and if you can hear me all right that would be absolutely magnificent there's a lot of talk out there and a lot of people that discuss or propose to teach you that you can trade like a bank and I'm gonna suggest that there's a way to do it that maybe most people don't talk about and glad that we can hear Thank You Joel I really appreciate that good morning from Conroe Texas I'm Rob Booker this is the daily webinar on YouTube I am like I said I'm running the show by myself today and it's gonna be a little bit of an interesting experience and I'm gonna see if I can flip this around and get this ready I can all right we're gonna broadcast straight here to the old Chromebook this morning and I think this should work get a nice little blue color here preview this to the program and go live on my desktop it looks like that's working okay Bank well that's really – that's and like that's not going to work let's do Bank Trading okay a lot of people propose that they're gonna teach you how to trade like a bank and I'm going to suggest that there are some principles at work here that help you actually trade like a bank and they're not the same principles that maybe a lot of other people would talk about so when people talk about trading like a bank what most people talk about is there are supply and demand levels and there are some really big name trading education firms that would propose to you that they can teach you how to draw basically support and resistance and that that's trading like a bank and my first proposition or my first suggestion is that I could introduce you to Jason Smith in my family of lifetime traders and he could draw support and resistance better than almost anybody I've ever met in my life that doesn't make him a bank trader I think it makes him one of the best ones I one of the best traders I know but it doesn't make him a bank trader I could introduce you to Joel who's here on the live broadcast Joel's one of the best traders I know is one of the most intelligent creative skilled traders that I know doesn't make him a bank trader the so that what I want to suggest is as we talk about bank trading I don't want to suggest to you that bank trading is something that you necessarily even want to aspire to it's not necessarily even something that you necessarily even know need to know how to do but if you do want to know how to do it I'm gonna I'm gonna suggest to you that this is this is how you do it Sean Campbell a friend of mine wrote a book called inventory trading a few years back I was the editor and he he wrote the book I need you to learn and remember the word inventory as we speak today and then I want you to also remember the word warehousing and Joel I'm going to keep our chat open and if if you need to tell me anything during during the webinar here I'll just be on telegram messenger I need you to also if you're watching today remember the word warehouse as we talked about bank trading so a picture in your mind a giant warehouse you know with those big doors where the trucks back in so here's a truck it's got some wheels and then okay so you got in your mind a truck a warehouse and the word inventory if you truly want to trade like a bank oh and I want you to learn another word specialization these are all the words that I would want you to know Thank You Joel for being here it's a it's a wonder that we've even gone live and that this is even working and that you can even hear me okay so remember these words so step one you will specialize you want trade like a bank trader you're gonna specialize you pick an instrument and you're now going to be on that desk remember that floor traders or desk traders who are also in some cases salespeople at the desk or floor traders in the pits remember that they specialized in financial instruments you know those there are two women really smart women really smart people not just women but there aren't a lot of women unfortunately in this industry but wendy and liz i think are their names on tastytrade now I don't watch tastytrade but I did meet them in person and Mark Sebastian another former floor trader introduced me to them and they are former floor traders from like the SIBO or whatever and they used to specialize a kept number was it Oracle or Hewlett Packard or whatever you needs to specialize on the floor on options on those stocks I remember going to a major investment bank Deutsche Bank I'll just tell you who it was and I remember that each of the traders at the desk they each had their own debt when they were sitting there this guy was a Euro trader this guy was a Swiss franc trader this guy was a british pound trader or floor traders were specializing in HP options or whatever but they picked a financial instrument and they specialized in it and and this is the first thing that I want to share with you is this concept that if you want to be great at something you're gonna learn to be good at it and then you're gonna learn to be great at it but you're not gonna switch what you do or change up what you do or do 50 million different things you're gonna you're gonna learn to do great and you're gonna learn to become great at one thing and you're going to specialize so the first thing that you would do is you would specialize and I'm just gonna give you an example of this I'm going to give you one example from the stock market I'm going to give you one example from the currency market so let's if you're you like options or you're like stocks or whatever we're gonna make you a specialist in Tesla and if you like currencies I'm gonna make you a specialist in the euro and in particularly in particularly in particular Erie I'm gonna make you a specialist in the euro US dollar so that's what that's your choice and once you've made that choice and you're sitting at that desk that's your job that's your one job that's that's the one thing that you're gonna do and you can consider you could consider yourself hired to only specialize in that financial instrument now this is what you're gonna do while sitting at the desk by specializing in Tesla or the Euro you are going to amass an inventory I know this is going to strike some people as absolutely ridiculous but I'm I'm a hundred percent sure that I mean you could follow the instructions in this video alone and something magical could happen in your trading because you are specializing in a financial instrument and you are amassing an inventory your job is to buy low and then warehouse it what this means is you're gonna buy the euro and you're gonna be on the buy side only you're only gonna buy hero's that's it you're not gonna you're no longer gonna speculate on the price of the euro falling or you're only gonna buy Tesla in small amounts or if you're dummy large amounts and then you're gonna put it in the warehouse and of course your warehouse is actually your trading account and I'm not saying this technique is for everyone it's not it's not necessarily for my friend Joel it's not necessarily right for my friend Jason Smith I'm just saying if you want to do it here's how you do it and you're gonna you're gonna warehouse this financial instrument and you're gonna buy it in in waves you're gonna buy it and you're gonna put it in your inventory you're gonna buy a little bit at let's say that the price is 100 then the price drops to 90 then the price drops to 80 you're gonna buy a little here a little bit here and a little bit here now your job as you bring it into your inventory is to prepare to sell it and sell off sell off your inventory so that's number three on the list clear your inventory or as Sean Campbell said in inventory trading turn it turn your inventory as often as possible that means if you've made 0.

5% 0.

2% 1% 2% you're gonna clear your inventory out and your entire job as a trader is going to be to bring things into your inventory and then get them out of your inventory so let's say that you specialize in the euro I'm actually probably going to start up an account that does this I may even teach a class about this if anybody cares you're gonna bring stuff into your inventory so let's say I'm a specialist in the euro and and I'm gonna I'm gonna think of the the daily range for the euro and when it gets to the bottom of its daily range I might pick some up if the euro is going up all day long that would be a day that I'm clearing out my inventory and offloading it on to other people on days where the euro is falling or weeks where the euro is falling or months where the euro is falling like it has been lately I would start accumulating and bringing stuff into my inventory I'm gonna prepare another diagram sketch here and I'm gonna get to the heart of the issue and I think this is really important and it's something that most people never take the time to learn you could specialize in two currencies or two stocks you could be on the buy side only and you could set a goal to turn your entire inventory every 7 to 10 days and you could make 2 to 5% a month for the rest of your life now I know that this sounds like I said this sounds absolutely ridiculous however it's totally possible you would watch for and here's a list of things you might watch for you might watch for the RSI on the 4-hour and the daily to go oversold you might watch for fib extensions I might even do a little member video about this I might even do a little member video about this today or tomorrow vivix tensions when it drops into these extension areas you might accumulate a little bit or pick up a little bit you might use Bollinger Bands with really really long term settings like 800 – – 400 – you know comma 3 or whatever you might use those fit extensions and you might use these techniques you might take any tool in your toolbox that you can think of you might wait for a downward spike after news and your goal is to accumulate stuff into your warehouse or your inventory and sit on it now you're gonna have to keep your trade size small because you're gonna have to keep it in your inventory you're gonna have to you can't blow your entire possible amount of capital in a short period of time and your job is just simply to turnover that inventory for small gains what is some of you may say well that sounds a lot like martingale stuff that sounds really dangerous that sounds like holding on to a loser what do you think what do you think a bank does if you look at the cot report the commitment of traders report there are speculators and there are commercials or whatever you want to call them and on the bank side of this equation as the Euro has been dropping and you willed you can just see it in the commitment of traders report you want to look the last one up I guarantee this is true the institutional money has been accumulating euros as it has been dropping because institutions must be the other side of the trade so Deutsche Bank has to be on the other side there has to be a final resting place for all the trend traders for all the trend traders that have been selling the euro they have to get it from somewhere and they're getting it from an investment bank and that investment bank ends up warehousing all of this all of this euro stuff that's where it ends up and eventually as the Euro begins to climb again the these investment banks are going to get their traders this is for those of you that are under the age of 30 this is a telephone they're gonna pick up the telephone ring ring and they're gonna call their customers and offload euros as it rises back up and then the whole process is going to begin again if you want to truly trade like a bank you're gonna think about warehousing and inventory and getting things at the lowest price you possibly can accumulating sitting on top of a position turning over inventory you could try to turn your inventory over every day but it's not gonna work that's just short term day trading and that's ridiculous I'm talking about something a little bit more longer-term position trading I'm talking about accumulating and specializing now this may not be for you this may not be the right path for you but what I like about this what I even could say that I love about this is it encourages you to specialize in a financial instrument become really good at at accumulating that financial instrument my friend Joel to just give more props to my friend Joel today has begun the process of absolutely specializing in a financial instrument and by so doing has enjoyed some recent I would say increased success as he tests and builds and specializes and you start to get a feel for that financial instrument as you are on the desk or on the floor and you specialize in that financial instrument what do what did market makers on the floor of the New York Stock Exchange ever really do they were the buyer of last resort and when the market was dropping they would accumulate and then they would hopefully offload it and they would accumulate and then they would offload they would accumulate and they would offload and if someone needed to buy it they would go get it and they would accumulate it and then they would offload it you can do this as a retail trader but it requires specialization and the willingness to inventory or warehouse your trades and last of all and once again to do this you need to buy in very very small amounts say if you had a ten thousand dollar account you might buy a few shares of Tesla at a time in a no Commission account like a Robin Hood account or if you're specializing in the euro and a ten thousand dollar account you would never buy more than one mini lot at a time and your goal would be to turn over that inventory for a half a percent gain as often as you could as frequently as you could and you would just keep trying to turn that inventory over that's what it means to trade like a bank my name is Rob Buchert I love you all thanks for bearing with me as I started this whole thing up by myself I love you all I will see you again tomorrow thanks for being here everybody bye for now not really exactly sure that this ended but I wanted to just make sure that I kept it on long enough that it could end for real and so I'm gonna cut myself cut myself off from talking but that's fine I mean.