30 May

losing traders often blame the market as the primary reason for their lack of profitability. Pointing at the insiders or massive market players, failures always find a reason for their investing misfortune.

Winners, on the other hand, understand that their success or failure rests purely on their market knowledge and ability to execute on the experience.

Winners are always working on building their knowledge and skill set to better understand how the market works rather than merely complaining. Grasping how the market works forces one to accept brutal truths about life. One of these brutal truths is that whenever money is involved, there will be those who try to get an advantage by manipulation. 

Market manipulation is rampant in today's financial market. Understanding market manipulation provides you an edge over those who continuously ignore or deny it. 

The best way to think about manipulation is to accept it as part of the market structure. As retail traders, we cannot control or change how the big boys play the game. Understanding that manipulation can work for or against you, depending on your position, helps remove worry about these unpredictable practices.

Market manipulation comes in all shapes and sizes. There are many ways which you could experience this move. In this article I want to talk about the differences between institutional traders and retail traders.

Have you ever wondered why your stops losses get hit before the anticipated move happens?

The truth is regardless if your analysis is correct, the reality of trading is that you will never win every trade. Retail traders are up against money makers, who have the ability to move the market on any direction they desire.

In order to make a make returns, money makers(MM) must first take money from retail traders like me and you. For every buyer=seller and vice versa. There's always someone at the other side of the trade(fact). In Example for me to short XAU/USD, the only way I will get an entry is if someone is longing XAU/USD. What has helped me and some of our members is visualising someone sitting in front of you and its you against them.

Institutional traders manipulate the market daily on all time frames, you might encounter market manipulation when price is in key areas such as Support and Resistance(S & R), Breakouts(ranges, triangles, channels, trendline) and news releases. Market manipulation is also identified as a Fakeouts: when price pretends to breakout of a structural level in the market and breaks back in. Most of the time it is the Banks, hedge funds tricking retail traders into trading their pretend direction before hitting their stop losses.

Institutions have many tricks and strategies to manipulate the market, or retail traders shall I say. They have a way to get traders to do the opposite of what they're doing. 

Lets look at a few examples below(fig.1)

 4th Dec 2020 NFP. (XAU/USD 1HR)

This particular day was  . Price was trapped in a range for 10 hours until a fake out on both sides of the range taking out both sellers and buyers. Most retail traders trading NFP would have  likely blew over 70% of their trading capital just by this move. To be able to trade NFP and be superior you must have a calculated approach. A system you can rely on and that system can be combined by technical factors, physiological and fundamentally. NFP is exciting and attracts many traders because of the volatility but is that where you want to be? 

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