Exposing trading once for all
Summary
TLDRIn this video, the speaker reveals the hidden workings of global financial markets, particularly the role of banks and large financial institutions in controlling vast market volumes. They discuss how retail traders represent only a small fraction of the daily market volume, with banks holding the power to manipulate prices and control liquidity through advanced algorithms. The speaker warns that understanding these algorithms is crucial for trading success, as it enables individuals to replicate the strategies of banks. Ultimately, the video emphasizes the difficulty of trading against such powerful forces and encourages viewers to learn the intricacies of financial systems to succeed.
Takeaways
- 😀 The video reveals the secrets of the financial world, focusing on the top 1% who control financial markets and their hidden strategies.
- 😀 The presenter acknowledges the immense risk involved in sharing these insights, as revealing this information could lead to being 'canceled.'
- 😀 A financial market is a platform where financial assets are exchanged, such as currencies (Forex), commodities (like gold), and other assets.
- 😀 The Forex market alone has a daily trading volume of around $7.5 trillion, a mind-blowing figure that challenges the idea of supply and demand driving the market.
- 😀 The vast daily volume in the Forex market suggests that it is not simply regular buyers and sellers that move the market, but large financial institutions.
- 😀 Financial institutions, such as banks, have the ability to create liquidity and control the market by executing massive trades.
- 😀 Retail traders (individual traders) account for just 5-10% of the daily Forex market volume, making them nearly insignificant compared to institutional traders.
- 😀 The banks, controlling the majority of the market volume, have near-total control over price movements and can dictate market directions.
- 😀 Banks use algorithms to manage trades instead of human traders, which eliminates human psychological errors and ensures disciplined trading strategies.
- 😀 The algorithms used by banks are based on artificial intelligence, and they have been in use for decades, giving financial institutions an edge in market control and profitability.
- 😀 Retail traders, if successful, would escape the financial system by making trading easier, something banks don't want as it would threaten their profits derived from interest payments on loans and financial control.
Q & A
What is the main risk the speaker is taking by sharing this information?
-The speaker is taking a significant risk by exposing the plans of the top 1% controlling the financial markets, as these individuals or institutions might not appreciate having their strategies publicly revealed.
What is the main purpose of the speaker's video?
-The main purpose is to uncover the truth about how the top financial institutions control the financial markets, their strategies, and how understanding these can help traders replicate their success.
What is a financial market and what types of assets are exchanged in it?
-A financial market is a platform where financial assets, such as currencies, stocks, or commodities (like gold), are bought and sold between buyers and sellers.
How much is exchanged daily in the Forex market, according to the script?
-The Forex market sees approximately $7.5 trillion in daily transactions, a volume that far exceeds the size of any retail market.
Why does the concept of supply and demand not explain market fluctuations at such a scale?
-At a scale of $7.5 trillion in daily Forex transactions, the idea of market fluctuations being driven solely by retail buyers and sellers doesn't hold up. The true drivers are the large financial institutions with massive liquidity.
Who controls the majority of market volume and how does this affect market movements?
-Financial institutions, particularly banks, control about 90% of the market volume. This gives them the ability to move markets in their desired direction, making retail traders' influence negligible.
What advantage do financial institutions have in trading over retail traders?
-Financial institutions have the advantage of significant liquidity, the ability to print money on demand, and control over the market. They also use advanced algorithms, ensuring they trade with precision and consistency.
What role do algorithms play in the financial markets, and why are they preferred over human traders?
-Algorithms replace human traders because they can trade without the emotional and psychological pitfalls that humans face, such as stress, panic, and lack of discipline. They always follow their coded rules, making them more efficient.
How do banks use algorithms to maintain control over the market?
-Banks use algorithms to control the liquidity in the market. These algorithms are programmed to follow specific trading rules and are designed to ensure the bank profits while controlling market fluctuations in their favor.
Why do banks want retail traders to fail, according to the video?
-Banks want retail traders to fail because if they succeed, they might escape the financial system. Retail traders typically rely on loans from banks, paying interest, which generates massive profits for the banks.
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