MARKET MAKERS | KUMITE
Market Makers
It’s not hard to understand the Market Makers methods, their model and their plans. It’s something that they repeat constantly and you’ll have seen it on the charts.
So how can you win in a financial market that is controlled by the Market Makers?
You win by joining them.
Time to earn the black trading belt.
So You Want To Trade The Markets
But what is it like? What’s involved? And what’s the reality of trading?
You must have seen the adverts promising to make you millions and offering a lifestyle where you can trade what you want when you want and from wherever you want.
However, let’s be clear from the outset, those same adverts are designed to tempt in a constant flow of money for the brokers, and they don’t care if your account is £500 or £50,000.
They don’t care if you blow up your account in a day or a week or a month.
They don’t care if you keep funding your account for years and years. All they want is your money.
The primary aim of their adverts is to attract your interest and attention.
The financial institutions need to make millions every day, just to exist, and they need you to feed them.
Understanding that will help to manage your expectations.
If it were as easy as the adverts would have you believe, everybody would be doing it. We’d all be rich.
That said, trading can be a profitable business once you’ve identified the right trade setups.
In our experience, however, it’s not that learning to trade the right way is all that hard. It’s not. It’s the discipline required to trade the right way that is hard.
The discipline and patience to wait for the right signal and not be a gambler.
The discipline to do what you know you need to do, when you should be doing it, and at the point when you see the right opportunity.
To trade the right way requires a sound understanding of how the market works.
More specifically, a sound understanding of how the Market Makers work and that requires a sound understanding of how the Market Makers manipulate the market.
Forget All That You Think You Know
The statistics say you have a 90% chance of blowing out your account in a few short months of opening your account.
Now, why is that?
Well, you’re up against the brightest minds in the world.
You’re up against quants that have been written by mathematicians. The brightest minds in the world.
When they write a quant that makes a hedge fund £5 to £10 million a day, they’re getting some serious money for that.
They have a massive incentive to make the quant work.
You’re up against high-frequency traders, in high-frequency trading funds, that capture the spread and just a little bit more and they do it thousands of times a day.
You’re up against dark pools of money. You don’t even know who they are there. They’re hiding there, lurking.
Dark pools that are waiting for something (planned) to happen and they go in with billions. Its seriously big money.
You’re up against Bank traders, Market Makers and the very sharpest skilled traders.
Do you think all those indicators that the broker gives you for free are going help you?
They’re not. They will drag you and your account down to depths you don’t want to go.
90% of the traders in the world lose money.
90% of the traders have access to the same trading indicators. Indicators that the brokers provide for free.
In essence, 90% of traders are doing the wrong thing.
They’re often buying when they should be selling, and they’re selling when they should be buying.
The Market Makers manipulate the market and try to trick you into acting. To place your money in the market.
The Market Makers know all the available indicators.
They know the trading systems that you find on broker websites.
They know the training materials that are provided by the brokers and the trading “gurus”.
The Market Makers know where your stop losses are.
They can determine, with some certainty, when and where 90% of traders will enter a trade.
The market is the business of the Market Makers.
It’s their business model.
Anton Kriel
Anton Kreil is the Managing Partner of the Institute of Trading and Portfolio Management and has had a distinguished career as a Professional Trader in the Financial Markets.
He retired from the Investment Banking industry in May 2007, just before the peak of the market and the impending collapse caused by the Global Financial Crisis.
Anton has always been known in the industry for his obsession with Financial Markets, his work ethic and for his ability to teach up and coming new talent in the Industry.
In this video, Anton provides an insight into the real world of retail trading. It’s a straight talking, no nonsense, appraisal of the role of the institutions, brokers and educators.
We are not affiliated with Anton Kreil, but we do believe that this video should be shared with everyone that has an interest in the financial markets.
The Market Makers
Money, in all its many forms and guises, has one common link; the banking houses of the world control it.
The Market Makers work for the banking houses and they also work in tandem with the central banks of the governments of the world.
They have unlimited sums of capital at their disposal, and they are not limited to just trading the currencies of the world.
They also trade the metal market (gold, silver, palladium, platinum), oil and gas, futures, options, and commodities like wheat, lumber, orange juice, coffee, and sugar.
In addition, they trade derivatives, bonds, Treasury notes and stocks.
When you put the Dow, the Nasdaq, the FTSE and all the other markets together, including over the counter, bulletin boards, pink sheets etc. you have a massive list of more than 9000 stocks and shares.
The daily cost (light, power, hardware and salaries, etc.) of trading currencies alone is about £20 billion, and they are involved in trades totalling more than £4 trillion a day.
One of the things that you need to understand, and the faster you know it, the easier it’s going to be for you to trade, is that the forex market itself is manipulated.
The Market Makers rig it.
Market Makers control the market.
They’re trying as hard as possible to get you to trade and to trade in the wrong way against them. That way, they can take your money.
They can manipulate the market in their favour, and this is one of the reasons why the forex market itself has such a high failure rate for retail traders.
We should be clear at this point that we don’t consider the Market Makers to be the enemy. The market is their business and if we want to trade the market then we have to accept and work within their rules of engagement.
So how can you win in a market that is controlled by the Market Makers?
You win by joining them.
To do that you have to understand their game and you have to understand their goals.
Mark Douglas said, “we know nothing for sure, and we don’t have to in order to make money”.
Accepting that statement as part of the trading journey is so important.
You need to understand the Market Makers business model, what the market makers are going to do, or more likely to do.
The Market Makers are the “whales” in the trading business, and you need to ride in their wake.
The Market Maker Business Model
It’s not hard to understand the Market Makers methods, their model and their plans. It’s something that they repeat constantly. Click on the Business Model button below to access the page.
The Market Maker Trading Cycle
The Market Makers business model has several key phases. Phases that collectively make a repeatable trading cycle. Click on the Trading Cycle button below to access the page.
Linda Raschke
“It’s amazing how sometimes the best trades occur after one group of market partcipants has been trapped. They’ll later become fuel for the fire when their losses deepen.”