The Greatest Trading Secret Never Told

The Greatest Trading Secret Never Told

We have often heard active traders proclaim that the financial markets are rigged and manipulated and that “the big boys are all out to get you”.  If you are struggling for consistency in trading and jumping from strategy to strategy, it is easy to understand why anyone would feel that way. Most conventional methods of analysis and market strategy come from all the same books and websites, readily available for anyone to find with a simple Google search. Try them all and jump from place to place and you will no doubt endure a frustrating experience. Spend too long in this vicious cycle, and you may start to wonder if you will ever discover the true secret to trading. If you can relate to this experience, then we are glad you found this article. It is time to draw back the curtain and see how the markets really work.

Our big reveal, is simply that the big secret to trading with success, is that there really is no secret at all.  Money is made and money is lost by every single person and institution who speculates. We all win, and we all lose but what truly separates the profitable from the unprofitable is how you win and how you lose. Lose small and win big and you won’t need to be right that often.

Nobody gets it right all the time and if they did, the markets would eventually cease to exist, as it would no longer be a zero-sum game. There must be a winner for every loser. Now while this basic concept makes sense, you no doubt feel that there is something you are missing in this equation. Maybe a nagging feeling that there is still some kind of dirty trick the big players are using, and that you may never have knowledge of.

“What do the banks know that I don’t?” is a common question for most novice speculators. Well, they probably have access to resources that the public will never be able to see or afford, yet even after all of that they still cannot guarantee the markets will work in their favour. Nobody ever knows what is going to happen next after all. Yet the one thing they do like to do is: get the very best price they can. This involves buying as low as possible and selling as high as possible to minimize risk and maximize reward. This is how money is best made in any sense. The key is to wait for the price to come to the best price and prepared to pull the trigger when the opportunity presents itself.

Take a recent example of price action on Amazon, leading up to its recent earning release. In the below chart, we have an example of institutional supply above current price just before earnings and demand below:


Notice the strong moves away from both marked areas? These kinds of moves could only be achieved by two specific things. Firstly, significant buying and selling power which can dominate the markets and secondly, a major imbalance of unfilled orders between the buyers and sellers. This kind of order inventory can only be deployed by major market players as well. Below we can see, after the earnings announcement, how price moved to and reacted at the levels over the next few days:

This is an example of the Pinnacle Method, a concept which we teach our members inside of the Pinnacle Institute. We believe that if you can spot the footsteps of the institutions on a price chart and see where they are buying and selling, there is no reason why you can’t attempt to buy and sell at the same time.

We believe that anyone can learn to trade. However, only if they model the successful, avoid the mistakes of novice traders, and are prepared to follow the rules of trading without letting their emotions get the better of them. If you want the secret to trading then here it is: Accept that you must keep loses small, wins big and focus on risk management first and foremost. Then be patient enough to wait for the opportunity to buy and sell when your potential rewards are high, and your losses are small. These opportunities can only be found at institutional levels of supply and demand. Hopefully you have found it refreshing to realize the big secret, isn’t really that big after all is it? Be safe and stick to the plan.

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