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Friday, March 16, 2018

KNOW YOUR ENEMY

“Amazing … she must be genetically related to EURUSD!”

When I used to do seminars all the time, I used to constantly hear something 
along the following lines; “man, I don’t know what to do … I try to be long in a 
bull market and I get killed … I try and be short in a bear market and it’s even 
worse … I get up a little money, and then as if by some magic wand being waved 
by an alien in the 9th dimension, they take it all away and go right to my stop 
… where, upon filling me at the worst possible price, the market turns around 
and goes right back to my old profit territory … I’m at my wits end here, trying to 
figure out what the hell the problem is … can you help me”? And to borrow the 
scene from “The Matrix”, you got a choice between the “red pill”, which shows 
you the truth, or the “blue pill”, which keeps you in the delusional state you’re 
in now … what’s it gonna be?

There’s a lot in what he/she said in the above statement, and I’m simply 
gonna tackle one part of it today … that part, is “know your enemy”. At first 
blush it may seem contradictory, cuz any of these MT4 markets we trade, are 
faceless, non-human discovery mechanisms … how can I attribute it as my 
enemy?

Make no mistake, financial markets are the most predatory human created 
creatures ever devised … there isn’t anything it can’t destroy given the right 
circumstances. Back-in-the-day when I used to roam the currency & SP500 pits 
in Murder, Illinois, the active membership on the trading floor was 
predominantly Jewish … especially in the financial products like currencies 
and the SP500 futures … and on some of their bad trading days, when it 
appeared that more than a couple might be headed back to the homeland cuz 
their accounts went “Thelma & Louise”, you’d hear somebody say something 
like, “wow, if only Hitler had known all it takes are trading accounts in financial 
futures, he could have saved a lot of time by just giving everybody an account and 
simply wait”. And while all the non-Jewish members were trying to hide the 
fact they were laughing, the other Jewish members didn’t care … they were 
laughing the loudest!

My point here is simple; “there isn’t anything new under the sun”. Our enemy 
are the scumbag LP banks … always have been, always will be. And until you 
understand “how” the trading game is played, you will never truly get rich 
from trading. Scumbag LP banks have only two functions, and neither of them 
is to provide “liquidity” … what a cruel joke that is … they are 1) make money 
off retail spec accounts however, whenever they can that won’t get the bank 
indicted, and more importantly 2) front-run corporate orders. When the second 
item dries up, that’s when the first comes to the fore in spades, and you’re much 
more likely to get terrible fills off the market … they got to make money, and 
while the real money is in the second, if it’s not there, they got no problem 
looking at your order ticket for “nickels and dimes”.

Those spikes you see on the M1, both up & down … they come from the bank 
front running some corporate order … and while they will deny it of course, 
the fact is they have numerous offshore LLC’s that get word from the FX 
trading desk, that XYZ, Inc. is buying [or selling] 100 million EURUSD, and 
while the dealer negotiates the price, the rest of the team is buying up 
EURUSD … when the price of the corporate buy is decided, usually 3 - 5+ PIPS 
higher than where the price is currently for EURUSD , the FX dealer hits the 
electronic platforms for all he needs … his buds get filled, the bank makes 
money on the arbitrage, and you simply see the spike instantaneously on your 
screen, usually immediately followed by, “WTF was that”? And from there, it’s 
simply rinse & repeat the same process all day long, and at some point, part of 
the loot is split back up to the FX dealer, his boss, and most likely the guy 
running the show from the top … this is what happens, and this is the reality of 
trading. “It’s the very premise upon which is built one of my golden rules, which 
is you can’t buy spikes up or sell spikes down and expect to make money. You have 
to wait for the corrections or pullbacks and make your stand there, and sell the 
spikes up in your profit direction when long, or buy the spikes down in your profit 
direction when short … and if you wait for the right “setups”, the probability is 
very high you will make money on the vast majority of the trades … simple as 
that”. It’s a very simple concept, but very hard to train yourself to do it. And 
so what ends up happening is people buy the spikes up and sell the spikes 
down, and the retracements take them out on dealer “stop flushes”.

Turning to today’s market … not much here until New York shows up, and 
then … BOOM! … lower we go. All price action is coming is “fits & spurts”, 
and there is absolutely no “flow” to anything happening in EURUSD … and by 
 “flow” I mean relatively smooth price transitions from one PIP to the next 
… that would indicate volume & liquidity, and from where I sit, there isn’t any. 
Still, here at mid-morning NY, we only have a 58 PIP range … not exactly 
setting the world on fire … and as we go into the European close and into the 
NY afternoon, I want no part of this … it’s a Friday, with no news except 
political, and EURUSD looks & feels “tired” … outside of today’s open, which 
for half an hour saw some decent short covering going into the weekend, after 
that it’s been Mr. Slim Pickens if you’re looking to get long … and quite 
frankly, that early short covering boost robs later rally attempts by taking away 
necessary fuel for a short covering panic; something I’d love to see, and of 
course is still possible, but not likely … there just isn’t any evidence of 
anything besides light short covering to give price an upwards boost, and I 
don’t think here at mid-morning it’s gonna see any kind of significant 
improvement going forward into the afternoon trade … could be wrong of 
course, but I’m not willing to get caught in dealer bullshit on a Friday 
afternoon, simply cuz there is literally no way to make the money back in 
choppy trading conditions if things turn sour.

Only one trade today … again, PAMM up slightly, nothing significant.

The ‘setup” was there, but it simply didn’t “pop” to the upside when it was 
supposed to, so I liquidated … and sure enough, 2 minutes later it popped a 
little, but nothing significant. It’s simply not a day, like the previous two, 
where long positions are favored for profits.

In any event, again today the majority of the day given over to chop bullshit in 
the first half [4 - 4 ½ hours] of the European session. As I said yesterday, this is 
not a welcome development, as it shortens the trading day and exacerbates 
price moves during the most liquid [supposedly] hours of trading … when 
everything in terms of price falls to the New York banks, you can expect 
nothing but trouble and headache, especially in the afternoon after Europe 
closes. “Thanks, no thanks”.

Most likely, on Sunday night my bull/bear indicator from “The Teacup Handle 
Turn” will turn either neutral or bearish; it’s been in bull mode since November 
2017 … that gives me the signal to move to possible short positions on rallies 
starting Monday … we’ll see what happens there. Also, I’m going to try and 
have the “EURUSD Aggressive Scalper Tutorial” done by Sunday night … right 
now, don’t know if it will be, but I got the weekend to work on it, so I’m 
hopeful. Other than that, another light profit day, but it’s better than losing 
… I’ll pick up on the trade again on Monday … I’m outta here early today; 
TEE TIME in exactly 1 hour 15 minutes … until then mi amigos 
… Onward & Upward!!

PAMM spreadsheet directly below.



 Have a great day everybody!

-vegas

OUR TURNKEY FOREX “PAMM/MAM” IS NOW OPEN AND
OPERATIONAL; SEE “PAMM/MAM MONEY PROGRAM” IN
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FOR DETAILS [VIEW ONLINE AND/OR DOWNLOAD] AND
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