The Market Is Rigged: Here’s How You Can Still Win

Summary

This video reveals how financial markets are structured in favor of institutional 'smart money' and why retail traders often struggle. The presenter explains historical and modern examples of market manipulation, emphasizing the role of algorithms and insider knowledge. He demonstrates a trading strategy aligned with smart money, focusing on time and price principles, key imbalances, and intermarket relationships. Through a detailed trade breakdown, viewers learn how to identify market reversals, double SMT signals, and optimal entry and exit points. The content encourages traders to study patterns, remain disciplined, and embrace time-based learning to consistently recognize high-probability trading opportunities.

Takeaways

• 😀 The market is rigged, and retail traders are set up to fail due to the overwhelming power and resources of institutional players like hedge funds and governments.
• 😀 Smart money manipulates the market using techniques like cornering supply and insider trading, a practice that has existed for centuries.
• 😀 The financial markets are now largely driven by algorithms, making traditional trading strategies ineffective against the elites that control the market.
• 😀 To succeed in trading, one must align with smart money by focusing on two key principles: time and price.
• 😀 Understanding and identifying 'imbalances' in the market is crucial. These imbalances reveal key levels and potential reversal points.
• 😀 Smart money manipulation is often hidden in plain sight, and recognizing the patterns and cycles helps in identifying the right opportunities.
• 😀 Intermarket relationships between assets (like NASDAQ and ES) provide key insights into market direction and can help spot divergences that signal reversals.
• 😀 Time distortion occurs when prices move in tight ranges over time, allowing smart money to accumulate positions before an expansion in the market.
• 😀 The New York morning session is crucial for volatility, with market movements often driven by news events and manipulation before major announcements.
• 😀 Successful trading involves adapting to smart money strategies, cutting positions at key levels to secure profit, and leaving runners to capture larger moves.
• 😀 The process of identifying algorithmic signatures takes years of practice, and those new to the methods should focus on observing time and price cycles to better understand market behavior.

Q & A

What does the speaker mean by 'the market is rigged'?

The speaker suggests that financial markets are controlled by large entities like governments, hedge funds, and wealthy elites, who manipulate the system to their advantage, making it difficult for retail traders to succeed. This manipulation is done through tactics like insider trading, market cornering, and algorithmic control.

Why is it difficult for retail traders to succeed in the market, according to the speaker?

Retail traders face an uphill battle because they only have access to a small amount of capital compared to the trillions controlled by larger financial entities. These powerful players use their resources to manipulate market conditions, making it nearly impossible for smaller traders to beat the system.

What historical examples does the speaker use to illustrate market manipulation?

The speaker references several historical examples of market manipulation, such as the Dutch East India Company in the 1600s using confidential information to manipulate prices, the practice of cornering the market in the 18th and 19th centuries, and rampant insider trading in the 1920s, which led to the creation of the SEC.

What is the concept of 'smart money' in trading?

Smart money refers to the capital controlled by institutional investors, hedge funds, and other experienced market participants who have the ability to manipulate the market to their advantage. The speaker focuses on aligning with 'smart money' to make successful trades, rather than trying to outsmart the system.

What does the speaker mean by 'sequence of imbalances' in the market?

The sequence of imbalances refers to the range of price levels that show significant disparities in market activity. These imbalances act as key price levels where smart money is likely to enter or exit the market, guiding retail traders to follow those movements.

How does the speaker determine when to take a short position?

The speaker identifies key moments in the market where price runs up to a high and shows signs of reversal. He uses tools like the SMT (Smart Money Tracker) and imbalance price ranges to detect these turning points. Once the market reaches a manipulated high or objective, the speaker enters a short position, anticipating the market will drop.

What is 'double SMT' and how does it help in trading decisions?

Double SMT refers to the occurrence of two forms of Smart Money Tracking (SMT) signals: one on a larger time scale, such as the London high, and another on a smaller time cycle, such as a 30-minute cycle. The presence of both signals at a key price level indicates a high likelihood of a market reversal.

What role does the 'intermarket relationship' play in the speaker's strategy?

The intermarket relationship refers to the correlation between different financial instruments, such as NASDAQ and ES (E-mini S&P 500). The speaker monitors these relationships to identify discrepancies or signals of market manipulation, which can help predict market direction and entry/exit points.

Why does the speaker focus on price reactions at specific levels, such as the midnight opening price or 24,750 level?

These specific levels are important because they represent key points of imbalance or price action where smart money is likely to enter or exit the market. Price reactions at these levels offer insight into the future direction of the market, helping the speaker determine the best times to enter or exit trades.

What is the significance of time distortion in the speaker's analysis?

Time distortion occurs when the market consolidates in a tight range over a period of time, allowing smart money to fill positions without moving the market significantly. This creates an environment where time progresses, but price action stays within a narrow range, setting up for a larger move when the market eventually breaks out.