Following the Smart Money...
Everyone knows that the smart money makes money right. This is no secret at all. The choices you have is to try to beat them at their own game when you can't move the market yourself or wait for them to make their move. It is that simple folks. You have to look for extremes in order to be a successful investor and trader. There is NO other way.
You might wonder well who is the smart money?
The hedge funds? No.
The big Banks? No to a degree although they are part of it
Governments? No.
The smart money is the commercial banks. The commercial liquidity providers who take the opposite side of the trade against the large speculators.
So you might be wondering where the best trade is at the moment with the Smart money? It is in the US Dollar index and even better in the USD/CHF. Not to the upside but to the downside. You can see by the chart below where I plan on going short. Or you can simply position yourself now and wait.
What do I mean by wait? I mean the commercial banks and liquidity providers do not move the markets quickly. It takes weeks or months to profit with them and you have to able to weather the inevitable draw downs that happen whenever you take positions in the market. I have often told you that a 500 pip move is nothing. It really isn't to them. They don't think of it in those terms. They wait until everyone is positioned one way and that is when they turn the markets. There is no particular system that will tell you this. You have to look for extremes. Extremes in small and large speculators to know that there is a high probability for a move in the opposite direction. Between the 1.0272 and 1.0373 area is where I am looking for them to dump the market although I am going to start building short very soon. I have done my research and there are a few good markets that are at extremes at the moment but none as nice as this one. Come back in about three months and see how you are doing. You need to use risk management and proper position size or it won't work. Please remember this.
You might wonder well who is the smart money?
The hedge funds? No.
The big Banks? No to a degree although they are part of it
Governments? No.
The smart money is the commercial banks. The commercial liquidity providers who take the opposite side of the trade against the large speculators.
So you might be wondering where the best trade is at the moment with the Smart money? It is in the US Dollar index and even better in the USD/CHF. Not to the upside but to the downside. You can see by the chart below where I plan on going short. Or you can simply position yourself now and wait.
What do I mean by wait? I mean the commercial banks and liquidity providers do not move the markets quickly. It takes weeks or months to profit with them and you have to able to weather the inevitable draw downs that happen whenever you take positions in the market. I have often told you that a 500 pip move is nothing. It really isn't to them. They don't think of it in those terms. They wait until everyone is positioned one way and that is when they turn the markets. There is no particular system that will tell you this. You have to look for extremes. Extremes in small and large speculators to know that there is a high probability for a move in the opposite direction. Between the 1.0272 and 1.0373 area is where I am looking for them to dump the market although I am going to start building short very soon. I have done my research and there are a few good markets that are at extremes at the moment but none as nice as this one. Come back in about three months and see how you are doing. You need to use risk management and proper position size or it won't work. Please remember this.
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