Saturday, February 6, 2021

How to outsmart the Market Maker by thinking like them Part 1


Trading is actually simple. Just do the Basic like Trend Direction, Market Structure, and wait for Pullback. The problem is Market Maker like to screw this up. They know where good discipline retail traders enter the market and our stop losses. So I come up with this little tricks to outsmart market maker.

To do this trick first we have to learn where retail traders mostly will put their trades. According to chart above we know the first white candle or doji will become the entry. Next step is where they put stop losses because as a good discipline retail trader we must put tight stop loss for a good Reward Ratio. In this scenario we know the stop losses will be below white candle.

With this information we predict that Market Maker will stopped out most of retail traders out of their position. There are 2 kinds of Market Maker stopped out. The first one like they will stopped out retail traders Stop Losses. In stronger trending market they only can afford to stopped out the breakeven traders or +1 traders. 

In this example the Market Maker stopped out the Stop Loss zone of retail traders. The trick is wait for good white candle after the stopped out happened then enter the Buy. What happened next is we don't need to wait too long for our trades to reach the target.

I am not saying the Basic Trading Method is not working. It is working more often than not. There is chances no second pullback and price just straight fly to the moon. But if you learn how Retail Trader Psychology and how Market Maker will exploit it, your trading performance will be much better. Me personally like Momentum Trades where it move fast to hit my Target Profit. Too long exposed at the market may effect judgement and more risk to have bad decisions.  
    

 

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