Market makers have a stranglehold on pricing, but that doesn’t mean you can’t make money trading. Read on to learn how to leverage the market maker’s cycle through MMM.
Whether you are a beginning trader or have been trading the markets for decades, there are several key principles and practices that you should follow. Most of them are summarized in catchy phrases like “Don’t fight the Fed” or “Pigs get fat, hogs get slaughtered.” While they are quick and simple summaries of complex topics, they are helpful phrases that can serve us well when we are about to make a trade.
Yet while these phrases encompass widely observable behaviors in investing or trading, another force is extremely powerful. In fact, that force is playing a part in every single trade that you make. That is the market maker. Sometimes shortened to “MM” on investing social media platforms, the market maker controls price action and movements in the markets. Whether you are trading GBP/USD or are looking into a quick flip of your favorite microcap, market makers are setting prices that will directly affect your profits (or losses) on your trades.
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As a professional forex trader and a technologist at heart, I recently created a unique trading platform that can help traders profit off of market makers’ activities. Called Market Makers Method (“MMM”), it includes our latest Dashboard© software, which is an intelligent AI-powered trading algorithm that is available for download. From full-time day traders to those who see day trading as a hobby, MMM can be a great tool to get the market odds on your side and obtain more profitable trades.
A Basic Primer on Market Makers
As a day trader or someone who holds securities for an extremely short amount of time, it is important to understand the market maker’s role and how you can use it to your advantage. After all, the markets are extremely competitive. Whether you are trading S&P 500 futures or currencies, market makers on the opposite side of your trade are going to be informed.
Ultimately, an understanding of market makers can tilt some of the odds in your favor. Market makers are essentially firms or individuals who actively quote two-sided markets in a particular security. These quotes are made up of bid and ask prices, along with the market size of both bid and ask prices. When looking at Level Two data of a stock price, for instance, you may see a quote of $48.50 - $48.55, 100x200. This quote means that market makers will bid 100 shares for $48.50 and offer 200 shares for $48.55. The tighter the spread between the bid and ask prices, the more liquidity exists.
Market makers control the markets through a consistent updating of this bid-ask spread. Their objective is to make it easier for traders to buy and sell any type of security. Market makers profit from the spread on securities they cover. That said, there are a variety of advanced tricks and gimmicks that they can use to profit from their work. This can range from giving phony sizes to jumping ahead of market orders. Market Makers have a special admin panel to all metatrader 4 platforms and they can actually generate their own candlesticks on the lower timeframes and create a long wick on any candle to grab your order and hit your stop loss. This is known as the stop hunt in our langauge. At their core, however, market makers control the markets because they are providing real-time information on bid and ask prices for any type of security.
Two Types of Trends
With this basic understanding of market makers in mind, let’s take a macro look at markets as a whole. Essentially, markets have two types of trends. The first trend is the market maker’s cycle. The second is the technical trend. While most traders focus on the technical trend (which can also be called the false retail trader’s trend), the market maker’s cycle is the real trend.
Technical trends are well-known by short and long-term traders. Everything from trendlines, moving averages, and other technical indicators are analyzed to make trades. While traders can find success by analyzing and executing on these technical trends, the simple fact is that these trends are not accounting for the market maker’s cycle. Because of this, you and other traders using technical trends may unexpectedly suffer losses.
By contrast, market makers follow repeatable cycles. Those cycles can be difficult to identify, certain elements can help you identify the market maker cycle (real trend). Keeping those elements in mind, you can develop a solid thesis on where future price action will go. These cycles typically last one week, which allows you to quickly see where we are at in the cycle and to realize profits on a scale never seen before.
Simply put, if you can identify market maker’s cycles, you can become a consistently profitable trader. This is true in any market. But from my own experience, the Forex markets is where we make our living and the market maker is mostly active in currencies.
I have experienced this firsthand. Before understanding market maker’s cycles, I would spend most of my time on technical trends. While they can be valuable, I was searching for a different strategy that would help me use market maker’s behavior to my advantage. Noticing that the markets are (and continue to be) rigged, controlled, and manipulated, I developed a strategy to capitalize on market maker’s cycles. I called it the Market Makers Method and it has been a fantastic way to leverage market maker’s behavior and piggy back on the market makers cycle to realize massive profits with minimum drawdown.
Introducing Dashboard© By MMM
From over five years of studying and trading alongside market makers, I discovered that market makers will continue to use their discretion to control all types of markets. It is as simple as that. They manipulate price action and create technical trends to deceive retail traders. These deceitful technical trends put retail traders on the losing side of many trades. It’s unfortunate—especially for those hungry traders who are looking to make the transition to full-time traders.
Because of this, understanding the Market Makers Method can even the odds for retail traders and investors. Amongst all retail traders, I can guarantee you they have heard of this strategy at some point in their trading career but there’s just one thing. A barrier to entry. You see, most if not all traders who commit themselves to learn this strategy fail to ever understand it. It’s extremely complex and takes years to master, rather than some technical trendline strategy which can be taught within a matter of weeks.
The Market Makers Method is extremely powerful. Recently, however, I have developed a new software that gives even more power to traders looking to leverage the market maker’s cycle. This software will pinpoint and show you exactly where new MM cycles have been created and how to trade with that cycle. That software is called Dashboard©.
Dashboard© is unlike any other trading platform. Dashboard’s unique algorithm detects all market maker’s cycles with precise accuracy. It tells subscribers exactly the top and bottom of market maker’s cycles. Through these data points, traders can hop onto the cycle and generate massive profits with little risk. To put it another way, you are trading with the market maker, which allows you to capitalize on recurring trends in all different types of asset classes.
Not only is the algorithm intelligent, but Dashboard© is extremely easy to use. You can click here to see how Dashboard© helps you carry out a profitable trade. Ultimately, Dashboard© will keep you in the correct market direction 24/7. Compatible with both Mac and Windows devices, you can easily start making profitable trades today.
Making the Market Your Servant
Using a tool like Dashboard©, you can make the market your servant, rather than your master. It lets you capitalize on recurring market trends from the individuals and institutions that control short-term prices. If you are looking for a new way to consistently make profitable trades, I recommend that you check it out.