LeMercenaire wrote:
It depends on what desk you're riding. If you're running weekly or monthly charts, then the kind of moves you're talking about barely register - unless it's something like the Brexit result, Presidential assassination, 9/11, etc but even then...
GBPUSDWeeklymovingintar16thMar18.png
It's like swimming in tar.
GBPUSDMonthlyTravelBackInTime16thMar18.png
What you will get - and yes, it's taking profits at its heart - is that counter trades will be taken and that cash bagged. The overall position isn't touched.
Privateers will be summoned from exotic, far away harbours and set to work, plundering. The guys who actually enjoy taking trades (as opposed to most fund traders and certainly managers, who enjoy taking lunches and letting the markets get on with things on their own).
They will be given free reign to squeeze as much out of any given move as they can. Nobody questions what they are doing. Nobody would dare. So long as they come home with the doubloons. The competition among them is huge but all driven by the desire to boost the bounty and so long as it doesn't jeopardize the firm, that's fine, it's encouraged. Then, once the job is over, calm returns and they sail away, back to the safe havens, taking their percentages with them.
If the movement simply goes in the direction we have been taking, then they are sent away again, back across the water, till the next time.
Are you excited by that? I know I was. It is the best drug ever known to man. Ever! You know what happened to most pirates though, right? Funds need them but they are scared of them at the same time. The same way Governments used privateers to fight their proxy wars and stuff the Treasury, that's how these guys are viewed. A necessary evil.
Out of any given group, four-fifths won't make it to the end in one piece. That's the life. Not one will regret it, nor have it any other way.
So...what you can learn from that, aside from an insight into my psyche and past life, is that what retail traders do is actually to try and mimic the action of the buccaneer. 99.9% will never trade long time-frame. Hell, 99.9% probably don't even know their mt4 has a weekly chart button, never mind a monthly one and wouldn't know what to do with one if it jumped up and slapped them on the face.
The way we enlightened Kreslik traders take advantage of that, is that we do know of their existence and how they influence the m5, m15, m30, H1, H4 charts at any given time. We build whole methods around them, guided by TRO, MO and the other higher beings. We don't fight the markets, we work with them. We mimic the privateers without the level of risk.
That's how you trade the news. Pick a side. The Fund Manager, or The Privateer. Just don't try and do both. You will die.
How'd you think I learned how to scalp the m1, guys?!
Trade well all - time for lunch.
Thank you LeM!
Not an easy post for my poor English, but still a precious lesson.
So the Funds are well positioned before the Privateers start the plundering, and if it will “push” the price in their direction then many thanks to the retails.
Am I grasping it? Hoping that I’m not telling crap