You always have to ask the following question when trading at any brokerage
house … “how does this place make its money, and from whom?” … nobody is
there to give shit away, and nobody works for free … we all know how places like
Coinexx makes its money, which is through “bid / offer variable game bullshit”
AND slippage, which they split in some kind of arrangement with their lead
broker … it ain’t from commissions cuz they are very tiny … in addition, since
they’ve gone the HFT route for LP’s in markets like gold & crude oil, more than
likely they get paid from the HFT for customer information in the millions of
dollars … that’s how they get paid.
Over at IQCENT, from the FX & CFD side of their operations, ignoring their
binary options operations, they aren’t giving anything away either … so with
the lowest total cost to trade in crypto [BTC, ETH, DOGE, & XRP] and EURUSD
that you’ll find anywhere, how do they make dinero? … they do it through
excess volatility [VIX] on moves up/down, and split the true price from your fill
against their hedge with the LP … e.g., you buy ETHUSDT on an up spike and
get filled 15 cents higher than the normal “basis” spread found at Phemex or
Binance, or maybe even with the group of LP’s that Coinexx uses … first
problem is that you bought the up spike which guarantees a shit fill, just like
every other house in existence cuz they ain’t your friend … they’ll take that
extra 15 cents and spilt it between the LP and the house … do this all day,
every day, hundreds of thousands of times, and what appears meaningless
to you IS BIG BUCKS TO THE HOUSE & LP! … that’s how they make their
money.
And from where I’m sittin’, that “volatility tax” amounts to about 1.2X - 1.3X
higher VIX at IQCENT … now, if your entry is correct, this is highly beneficial
cuz it means you’re gonna get a bonus on liquidation by that “Vix tax” … if
your entry sucked, YOU PAY THE TAX! … it’s as simple as that! … and this
applies to the other crypto pairs if you prefer to trade them, or EURUSD if you
prefer to trade traditional FX … you’re either the statute or the pigeon, so be the
pigeon! … this is the essence of what it means to be a scalper in the traditional
sense of being a “floor trader” … costs are meaningless, and it’s like standing
at an ATM and taking money when done right! … so, before you go wading into
any of the crypto pairs or EURUSD, do very small orders to get your bearings
and trade timing down to an “art” … what you make is not the issue here and
nobody cares about your 7 cent profit or loss on some trade … what the issue
is, IS PROFITABLE TRADING THROUGH DISCIPLINE & PATIENCE, AND
RINGING THE REGISTER! … rinse / repeat … “If you can make $1, you can
make 1 million MOAR!”
Clear your head for a second and ponder this … is not scalping as I’ve
described it in part 1 & part 2, a “quasi form of binary options trading”!? … a
tiny bit of more risk, but more potential gain as well … very short term, and no
attempting to beat the “AI computer system” that defeats collective specs over
5s, 15s, or 30s in OTC binary options … and the ability to exit the trade and not
be forced to wait for expiration, where 1 second before it expires it either goes
lower against your “buy”, or if you’re short it goes higher right before
expiration … either way you lose … it’s a highly rigged game, especially at the
short end of 5s expirations … but when you scalp, you avoid all of this
… especially in crypto this is the case, but I’m not so sure if you’re trading
EURUSD, where IMHO risk is higher than imagined or desired … what it comes
down to is basically “buy the dip, sell the RIP!” … and for decades this is what
Locals on the trading floor did to make 6 digits a year or more, without
worrying about where anything went up/down from day-to-day, and could
have cared less if it “went to ZERO” or went to the moon … in other words,
“trade it, don’t date it!” … all I give a shit about is making dinero RIGHT
NOW, and the quicker the better … now rinse / repeat … what a great life it
was! … and then technology and fucking scumbag banks messed it all up,
and inserted themselves into every trade being done … but, the upside to
all of this, is that it’s available to everybody cuz the banks think your money
is actually their money, and since your a Doofus Newbie who doesn’t know
Mr. Jack “Diddly” Squat, it won’t take much time for that money to find its
rightful owner [which ain’t you!] … this is why people paid hundreds of
thousands of dollars to stand in a trading pit!
I will also mention, that IMHO after watching ETHUSDT closely now for weeks,
that there is a definite bullish bias to the trade at IQCENT … way more often
than not, the basis between Coinexx and IQCENT is on the “+” side of the
equation as it relates to price differentials, and quite often we see the basis
expand very quickly to the approximate +$1 level IQCENT OVER COINEXX
… either traders getting long or panicking shorts, who really cares which, tend
to favor this differential … keep this in mind if you plan on trading ETHUSDT
from the short side … in addition, don’t sell the other crypto pairs short in
terms of trading volumes, liquidity, and/or moves up/down … both DOGE [Doge
Coin] & XRP [Ripple] have decent ranges, plenty of “Trend Vix”, and just as
many opportunities as either BTC or ETH … it simply comes down to what
you’re comfortable with as a trader and whether or not a particular crypto pair
fits well with your style of scalping … if I’m a Newbie and don’t know which to
trade, I’d deposit a small amount of money via crypto, trade very tiny [almost
meaningless] volume sizes, and try all of them to see which you like best
… forget cuz who cares whether or not you make / lose a penny … the point is
to become profitable via “buy at 1 sell at 2” or “sell at 2 buy at 1”, and the
ability to train yourself given my instructions and guidance, and then doing
it to convince yourself you have the ability … OK, so just do it!
And if the crypto pair you’re trading goes extraordinarily slow, switch over to
EURUSD, where although somewhat riskier, the volume amounts and very high
leverage can make a “bigly & yuge” difference in your bottom line … again, it
depends on your risk profile … although IMHO crypto is better overall, when
EURUSD has any movement whatsoever, it’s right there with crypto for scalping
… if you follow the VIDYA & STOCHASTICS, and the rules I’ve laid out, anybody
will be fine trading EURUSD, unless it gets ridiculously slow and choppy … and
just like in the crypto pairs, you have to watch carefully the “basis” between
IQCENT EURUSD AND either a ZERO SPREAD PLATFORM LIKE FUSION
MARKETS, OR COINEXX IN EURUSD … often times this “basis” can swing
wildly, and you need to know what’s normal and what isn’t, what’s a great place
to get in [long / short / liquidation], and where you’re gonna get ripped off for
your scalp … this isn’t “sit on the beach and sip margaritas & watch the money
roll in”, this requires discipline & patience while you’re sitting there at your
screen to trade … if this somehow bores you, then go work for a living, and
let me know how much you like that … “if it was all as easy as the YouTube
Grifters make it out to be, your Uncle Eddy would already be doing it!”
I could just as easily have named this 3 part series using EURUSD instead of
ETHUSDT … cuz when EURUSD moves at all, with a 0.1 or 0.2 bid/offer spread
and no commissions, it’s like picking up [name your denomination!] bills up
off the ground while you’re walking … just like the trading floor! … and it’s far
cheaper with no commute! … and from my experiences with IQCENT, there has
been ZERO slippage off of EURUSD trades, something Coinexx could learn
from but obviously don’t … even the “1 lot Pond Scum traders” from yesteryear
could stand there for 6 - 7 hours and pick up $20 bills off the floor all day long
… some of these guys could trade 400 - 500 times in that period … not
suggesting you do that, just explaining what people can do when properly
motivated, disciplined / patient, & somewhat very aggressive … and you can’t
do it when costs are too “Hoover Dam” high and/or you have slippage that
kills you … this is why it’s important to understand how the house makes their
money … I much prefer the approach IQCENT takes, cuz slightly greater VIX
on moves is to your benefit if you trade right … and if you don’t trade right,
they will gladly take your money every time you click a button on that order
ticket box … GUARANTEED! … and quite frankly, that’s better than screwing
everybody with horseshit “variable spread games” & slippage any day of the
week!
And if you’re sitting out there and reading this and can’t decide which market to
trade, it’s a pretty easy formula … 1) pick the cheapest LOWEST cost to trade
cuz it puts money in your pocket, and 2) it has to be moving up/down, preferably
like its pants are on fire … one-way straight shots ain’t gonna do a scalper any
good, cuz it doesn’t create the opportunity you need to make trades … and
currently, any of the 4 crypto pairs I’ve mentioned fit the bill along with
EURUSD … THAT’S IT … there, I solved it for you! … you’re welcome!
Turning to today’s “Slots-A-Rama” bullshit, inside the world’s largest rigged
casino, even with rates going slightly lower, a FED PIE HOLE pisses all over
risk on with another “higher for longer” quip, and on a Friday that means get
out of Dodge City and leave everything alone … crypto must have taken a
sleeping pill or something … gold, dead up & until rates can actually move
lower, and EURUSD goes on the yo-yo “Flying Wedge of Death” [FWD] ride
inside another pathetic range … although, up to the London Fix, it was trading
rather well, even with a shit range … good for scalping only, not so good for
everybody else … again, trying to trade gold and I feel like the treasure hunter
who comes up empty with bags of sand … ranges simply awful despite decent
bid/offer spread, and the trading action very lackluster … didn’t even get a $10
range for the entire day … no trades for the PAMM, not for lack of effort or
desire, simply cuz there’s nothing to do with a market that is asleep at the
switch for the moment …over at IQCENT, some early ETHUSDT trades, and
when that died on the vine when the sun came up in New York, multiple trades
in EURUSD, and we’re UP APPROXIMATELY 0.3% on light volumes … as I said,
although the session range sucked, good up/down action for scalps based on
VIDYA & STOCHASTICS … be back for the Sunday blog update … until then.
… OUTTA HERE … “The future’s so bright I need 2 pairs of sunglasses 😎😎,
and my own Brinks armored truck” 💓!! … Onward & Upward!!
-vegas
