Are you trading a Slot Machine?

Have you ever wondered why, when you enter a market, that market almost instantly (even if you ultimately have the future direction correct) moves against you and takes your position out of the money?

The why, is because 90% of the time when you push the buy or sell button on your dealing platform you have been manipulated into doing so. To this some traders will instantly defend their trading decisions and say “no, that is not so, I only enter when my trading system tells me to” What these traders fail to realise is that the Market Makers are manipulating the traders BELIEFS about future price, and they are doing this by causing standard market indicators to come into play when they want them to. Market Makers MAKE a market, this is their role, THIS is what they do.

How do Market Makers Manipulate
Market Maker manipulation is not carried out on a surface level. By surface level I am referring to the charts that you see on your screens. 90% of traders look at charts to try to glean meaning from movement and patterns. This is a facade, a facade presented by the industry to achieve one outcome, an outcome similar to a slot machine.

Let’s pause for a moment to consider the outcomes of a slot machine.

1. You can win on a slot machine
2. You can lose on a slot machine
3. Slot machines have payout rules.

The outside perception of a slot machine is that it is there for a bit of fun and you can win if you play and this next spin COULD be your big win. At the heart of a slot machine is a set of rules but contrary to popular belief these are not payout rules. They are KEEP PLAYING rules. By paying out ‘just enough’ to keep you interested and presenting to you the POSSIBILITY of the big win you will keep feeding the machine. The machine that is ALWAYS removing a percentage for the machine owner and tax man.
There is nothing covert about this, we know the rules (although there are some that think they have a ‘system’ to beat the slots’) yet you see people pumping in money for hours on end with their own ‘lucky wrist flick’ that gives them the edge over the electronics. Lunacy, yes but that does not stop them playing.

The Market Makers manipulate the biggest slot machine in the world.

Just like the rules of the electronic slot machine, the financial markets have rules. The spinning wheels that you see on the slot machine are the market charts you see on your screen. The ‘patterns’ that you are told to trade provide the payout percentage for you and the payout percentage for the machine owners. (The Market Makers)
This outcome is just like the slot machine that has pre programmed payout rules. The outcome desired has one single purpose which is to KEEP YOU PLAYING.

You will never beat the Market Makers but you can join them.

Joining the Market Makers involves the abandoning of charting patterns, standard indicators, and $97.00 secrets. It involves the learning of how the Market Makers run their business. Learning how to read the one true constant of the financial markets which is the manipulation of traders BELIEFS about future price. Once you understand how your beliefs are manipulated as a trader and then apply that understanding to the market, never again will you look at the markets and experience a feeling of unknowing or uneasiness.

Please note* These are MY opinions, I have traded my opinions for near 20 years. If you have different opinions and trade them successfully then they are every bit as valid to you as mine are to me.

This is an original article by Martin Cole. Forex Trader for near 20 years

 

Has anyone stopped to consider that the fact of the matter is that the MARKET does not KNOW of a tap? The market is a CONSTANT STREAM of prices, we as humans IMPOSE on the stream a time frame, to which we place a conceptual meaning.
The real danger in life and indeed is trading is to trade a CONCEPT that one has formed based on a particular thing meaning a particular thing.

How do you separate out a 'tap' from the constant stream of 'taps' to mean any one thing? The human minds seeks form, always seeking form and this tap is just one example of that.

Traders, especially new traders all want to BELIEVE in things that SOUND like they should mean something. "Tap" is just a name that has been placed on a arbitrary price change.

You would be far better of considering what CAUSED the price tic change rather then trying to name it and give it some sort of elevated status any other price tic due to a name.

 

If you have done your analysis and YOU BELIEVE in the downside but then fail to act on this belief you will set a mental precedent that will cause problems in the future as you start to question and look for outside influence to support your beliefs.
If you have seen a 3 tap, 7 tap or 10 tap and this is what you believe in then why would you need the opinion of another?

I am not criticising you or anyone here as that is a futile and an easy past time on most forums, (this forum is rather refreshing in that respect) rather I am prompting you to have a think about the importance that BELIEF plays in your trading decisions and outcomes.

 

Whenever you buy you have ALREADY created a belief within yourself. If you doubt this then the next time you want to buy, try selling. Crazy! Yes BUT the point is you will NEVER buy or sell a market until you believe the market is going to move in your favor and that is a fact.

We are always predicting. Since you cannot yet see the next shape at the right hand edge of the chart, you are predicting what that shape will be. EVERY trade is prediction.

To trade successfully over the long haul one must change the perspective on how one looks at the market. The market is not their for a traders benefit. The market is money extraction machine run by the market makers. We are allowed to participate as 95% of trader supply fuel for the machine.

IMHO The way to success is to view the market for what it really is (a money extraction machine) and then before EVERY trade ask a question.......IF I was a market maker how would I extract money from the masses?
Well how would you...........If you view the market from this perspective it takes on a whole different meaning.

 

Someone once told me the market is a liquidity seeking monster usually causing "max pain" to the most participants that it can. Thanks for your insights.