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How Banks Manipulate Retail Forex Traders - Day Trading Strategy

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More Bank Trading Strategies - https://www.DayTradingForexLive.com In this video, I walk through some recent market manipulation that occurred around economic data. In general, news offers a good opportunity to identify manipulation in the market which gives us a great indication of what smart money is doing. Because 5 banks control 58% of the daily forex volume, they must search out liquidity when they have the desire to buy or sell. Simply put you cannot buy what someone else is not willing to sell, and you cannot sell what someone else is not willing to buy. If they have the desire to sell, they need buying pressure and thus entering the short position is easier when the overall market direction is long. The news represents a great time when a one-directional market is likely to occur and thus allowing smart money a great opportunity to manipulate overall market sentiment. How The Banks Manipulate Retail Forex Traders - Day Trading Strategy - https://www.youtube.com/watch?v=CDhXG02KgWE -Sterling
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Text Comments (97)
Daniel Khan (1 month ago)
What I don’t get If news is bad market will go down. Your saying that they would reverse that?
Day Trading Forex Live (29 days ago)
+Daniel Khan No, not necessarily. The factor is you have to build an edge around any belief you have. You cannot build a consistent strategy around "eventually it will go in the direction of the news." After 100 pips, 1000? You have to control your downside so you can maintain a positive R/R ratio which is the entire key to successful trading, not win/loss ratios.
Daniel Khan (29 days ago)
Day Trading Forex Live right right so to sweep out those high leverage accounts. But eventually it will go in the direction of the news Ie brexit failing. And pound falling
Day Trading Forex Live (29 days ago)
Hey Daniel....what I'm saying is news is often used as a trap. My focus is only on a day trading type time frame. It's important to understand that as I'm not referring to what might happen over the next few days or longer, only that day for the most part. That being said, the news is often used to create buying pressure from which smart money will often be selling or selling pressure that smart money is buying into. This, in turn, flips the short term direction and creates a squeeze the other way. -Sterling
Star Adam (1 month ago)
Day Trading Forex Live (1 month ago)
Glad to hear you liked it!
Computer Science (2 months ago)
Is there a way for a retail trader to access an accurate volume for overall live brokers?
Day Trading Forex Live (1 month ago)
​+Computer Science I would just pull it from futures data if you have the ability to take that data and input it into MT4. As far as getting access to a private LP, you'd need a seven-figure account plus. That being said, I don't know how much you'd gain over futures data.
Computer Science (1 month ago)
+Day Trading Forex Live If I wanted to access the biggest feed of live institutional data, where would I get it? Something the average person could access.
Computer Science (1 month ago)
Do you feel bringing data from the futures and having it be part of a price action system would help. I was thinking about an external Foot print, that sent information into my EA in Forex
Day Trading Forex Live (1 month ago)
You can get true volume from the futures market, but not spot forex. The spot forex market is an interbank market which means there is no 1 central exchange. With a central exchange, there is no way to track all the volume through every liquidity provider out there.
Morwadi Gaboeletswe (2 months ago)
talking for a longer time for about basic things every trader knows shoot straight to ur points
Steve Wallerstein (3 months ago)
I don't understand exactly how the banks cause the price to "snap back". What is actually going on when that happens? Also, the underlying assumption that 5 banks are moving the market is that the banks trade as a monolithic force. Do they all trade the same way all the time? Do they trade in concert with each other? Thanks
Steve Wallerstein (3 months ago)
+Day Trading Forex Live Thank you for your reply.
Day Trading Forex Live (3 months ago)
Hey Steve, I tend to explain it in a broad stroke kind of way as it makes it easier for people to visualize, but it can give the wrong impression that banks are working together or they control all price action which is not true. Essentially, what we do is identify an area of liquidity under the premise that smart money needs liquidity to both enter as well as exit positions. Remember the banks might process that much liquidity, but they are doing so as a market maker, not speculatively. As such the market is often driven back and forth between areas of liquidity as this is what is used to enter and well as exit large positions. If they begin to sell into the buying pressure that is created by rising prices the reversal or 'snap back' becomes a self-fulfilling prophecy as momentum algos and other traders pile on. The same would be true for the opposite direction. -Sterling
Rat Man (3 months ago)
Banks don't give a shit about retail traders. Collective retail trading volume is inconsequential. Stop bullshitting.
Day Trading Forex Live (3 months ago)
I agree that retail volume is pretty much irrelevant to the banks, and if that is the point you got from the video, then I would recommend actually watching the video as opposed to reading the title and making up your opinion. The point of the video is that 10 banks control well over 60% of the daily forex volume. This isn't my opinion, it is based on the latest BIS trade report. Because they process the majority of the daily volume, banks will always have to search out pockets of liquidity for larger entries as well as exits. As such, we look for likely areas of liquidity (manipulation points), and then we wait for the stop run of that point. This, combined with a positive R/R of 2/1 or better makes for a high probability entry. The other factor is that I don't just say this works. Unlike 99% of educators, I actually have a multi-year live track record posted on my site, and I continue to pick these levels every single day, about 12 hours in advance. I understand your skepticism, and it's probably a good defense mechanism for this market, but it's keeping you from actually seeing the point I'm trying to make on a strategy that has proven profitable over the last decade. -Sterling
Ryan Vance (5 months ago)
During an uptrend, these impulsive waves push prices higher in a relatively short period.If you want to learn one of the most powerful price action trading method, i highly recommend you purchase your copy of The Blended model strategy right now while it is still available.the method is simple, easy, and very profitable.
bangkokskater (5 months ago)
Were you from Steve Mauro or VKU
Day Trading Forex Live (5 months ago)
I don't think anyone else was putting out videos on market manipulation before ours. This video goes back to 2010 which is long before Steve. Before that, I had been teaching it for 2 years in the Forex Diamonds room. This was one of the first major live rooms, and it was run by Forex Peace Army. https://www.youtube.com/watch?v=9KMkkx4OfmU&t= -Sterling
hoi giang Huy (7 months ago)
when we ready to buy mean thatthe banks ready sell for you !
hoi giang Huy (7 months ago)
thank you !
Day Trading Forex Live (7 months ago)
I do think that the first 4 hours of both the European and NY Session is the best time to trade. This is when the market is the most active which is important for this strategy. With that being said, I don't think there is anything wrong with limiting your trading to the Pound, but I personally trade most of the majors as well as the EUR/JPY and GBP/JPY.
hoi giang Huy (7 months ago)
thank you !,so sometimes in trading i am so confused to entry postions ! i like to trade GBPUSD at london open time ,i think it is ideal for this pair ,do you agree with ?
Day Trading Forex Live (7 months ago)
Yes, that is very often the case. That is why it's so important to understand where the smart money is likely to be positioned (long or short). All the best in your trading!
Nick C (7 months ago)
good video. explained well. this is what they do 100% agreed.
Day Trading Forex Live (7 months ago)
Thanks for the comment, glad you liked it!
Aussie Trader (11 months ago)
As a day trader of 10+ years I rarely see trading videos that are based on reality rather than hype. This video is reality in a nice little nutshell for all you squirrels to crack! Keep up the good work guys & keep it real.
Day Trading Forex Live (11 months ago)
Our web guy was actually in the process of making a change to the sign-up box which is probably why you didn't see it. If you visit any page on the site (https://www.daytradingforexlive.com), you'll see in on the right-hand side of the site. Also, as far as contacting me, you can use the 'Contact Us' page on the site or email us directly at [email protected]
Aussie Trader (11 months ago)
Day Trading Forex Live... credit where credit is due guys. Tried to sign up to your newsletter but couldn't find the link on website. Can you send it to me somehow or message me pls?
Day Trading Forex Live (11 months ago)
Hey Simon...glad you liked it and thanks for the comment.
joe lambo (11 months ago)
Market Gurukol (1 year ago)
Plc help
I'm sorry I don't understand your question. Feel free to shoot us an email or reply here.
OldSkool (1 year ago)
How much size do you think an individual trader can do before he gets noticed.... lets say the individual knows what he's doing and has a great entry. I scale into 20 lots on my best setups and about 15 lots on other setups. Being a skeptic I can't help but think.... will they put it past me no matter how good my entry is (due to the size I do... will they see me and decide to take it further anyway?). Im basically concerned that its a losing battle for a private trader who wants to do size... because at the end of the day they got the proprietary tech that literally shows everyones positions. I havent noticed anything consistently that i can say makes me think this.... but just wondering what your opinion on this is. I personally believe in all markets.... the market ain't as big as one likes to think.
Ryan Vance (5 months ago)
During an uptrend, these impulsive waves push prices higher in a relatively short period.If you want to learn one of the most powerful price action trading method, i highly recommend you purchase your copy of The Blended Model Strategy right now while it is still available. the method is simple, easy, and very profitable.
Aussie Trader (11 months ago)
Day Trading Forex Live... Spot on mate!
The point you need to keep in mind is that this is a 3-5 trillion (depending on how it's counted) dollar a day market. Even if you were going to live market (more than likely they are not) the size would be so small that it would be irrelevant. If you're talking about trading with a broker that is a Market Maker, it's important to note that they do not have to trade against every client. As you mentioned, the brokers are highly sophisticated. I have contacts with those that actually run different brokerages, and when there is a profitable trader they often hedge that trader if the position is large enough. Additionally, they can match customer vs customer so there is no conflict of interest. The main point I'm getting at is that you really don't have to worry about the broker as long as you're with a reputable country. The bigger obsticle is actually learning to trade, not the broker. I hope this helps! -Sterling
This is a great video. It's true that if we can follow the bank traders, we will make money most of times.
Peter Hughes (1 year ago)
OK, interesting and that got you a sub =)
Adel (1 year ago)
That moment when you reference Wikipedia
Foreign Creations (1 year ago)
It's actually when they bid the price that the market moves into the liquidity area not when you put the order in
Hi...that point was probably just misunderstood as that is correct, orders do not move the market. Putting heavy orders in the market can move the market as other major players will see key levels with heavy liquidity and close positions or by front running the larger orders. This is however, a different situation all together though. All the best in your trading! -Sterling
Poopy Joe (2 years ago)
Forex trading can be very lucrative stuff if youre reactionary based ie NEVER put on a trade before the numbers are out simply REACT to the direction the market is going after they`ve been released!
Patrick Byfield (2 years ago)
very clear my friend very clear thank you
BillG37 (2 years ago)
The problem I have with this is it doesn't always reverse after the big news move. Sometimes it'll keep going in the same direction , or just stay in the same area after the move. I think some of the reverse is retail traders taking profits as well.
Thiemann Nici (3 months ago)
Forex trading is a business. You’re the business owner. If you don’t treat it as such, the bad days will ruin you. If a shop owner neglected his store and just expected customers to pour in and purchase goods, then the business is going to fail. It’s no different when a Forex trader thinks they will magically succeed when they start trading without some sort of trading plan or money management model. These traders are kidding themselves and wash out very quickly. if you want to learn how trading works in depth, i advice you learn Blended model strategy and study how to apply these method by Dmirty Vladislav.
Moises Albutra (3 months ago)
depends in market moods or sentiments, economic news are already priced in sometimes bad news becomes gud news and good news becomes bad news because sentiments or unpriced news/volatility is stronger than fundamental
Gerardo Gonzalez (2 years ago)
you lost me at "go to wikipedia"
@Pun Jab I .... Lost credibility by referring to Wikipedia that sources the information from the Bank of International Settlements?? I would recommend actually looking at the source before making a comment on it as there is no better source for volume in the forex market.
I'm not sure what you mean by "lost you" so I'll explain further. I said go to Wikipedia to confirm the numbers I was giving you. A little research on your part probably would have answered the question as to why I was referring you there. I was not referring you there to say that Wikipedia is the source of the information, I was simply directing you there because it is the easiest place to validate the info I was giving you. The true source of the information, and the source that Wikipedia pulls from is the BIS report (Bank of International Settlements). That is the most credible source of forex volume you can get which is why I reference it. I hope this clears up your confusion, and all the best in your trading moving forward. -Sterling
Pun Jab I (2 years ago)
Gerardo Gonzalez yup, lost credibility
Paul Placucci (2 years ago)
Do you have a track record we can see? Do you actually trade or just talk about it?
Yes, I have over two years of month end reviews on our website. I do a daily market preview video each night that pre-selects the levels we are going to trade from. Because the level is pre-selected and because the entry technique is mechanical you know for certain whether or not the trade was valid as well as the result of the trade. Additionally, because the levels are pre-selected (time stamped with youtube) there is no way to distort the results. This is a much better method of tracking results (as long as the entry is mechanical) as things like MyFXBook, broker records, ect can be faked, where as this cannot.
Ashfaq Sheikh (2 years ago)
The market will do what the market will do --- one can only make educated guesses based on trend indicators. Even with 50% wrong entry decisions, one can still make good money consistently. Keep the exposure small so you can withstand adverse market moves --- and never be forced to cut your position in a loss. I call this the 'Slow' method to riches.
Nick C (7 months ago)
50% wrong decisions? you should have a 95% strike rate. by that i mean and ability for your entry to make at least a full auction. if not you really dont understand whats happening.
Hey Ashfaq....I couldn't have said it better myself. People always search for higher win/loss ratios when the most important factor is finding a strategy that produces high reward to risk ratios. All the best in your trading.
Ashfaq Sheikh (2 years ago)
When he says that only 5 banks control 58% of the market, he probably means that these banks are the biggest market makers. Wonder why is it so bad? --- Without these banks, there will probably be no market.
Yes that is exactly what I mean. When I say "control" it would be equally as accurate to say that they have 58% of the volume processed through them. As such they are not "controlling" the volume necessarily, they are simply processing the volume to allow the market to function. As you said, without them you wouldn't have a market, or at the very least the market would be very different. I don't want to convey the idea that the banks "controlling" the volume or acting as a market marker is a bad thing, because its not. Its only a bad thing if you don't know whether or not the majority of that volume is flowing towards the long side or short side of the market. Our strategy is designed to identify that. While you can never identify what is happening 100% of the time, you can give yourself a statistical edge that allows you to consistently grow an account as you talked about in your comment above. Thanks for the comments and I wish you the best in your trading! -Sterling
davidFreiheit (3 years ago)
i was told there is no manipulation on forex ,i guess i was misinformed..
Ryan Vance (5 months ago)
During an uptrend, these impulsive waves push prices higher in a relatively short period.If you want to learn one of the most powerful price action trading method, i highly recommend you purchase your copy of The Blended Model Strategy right now while it is still available.the method is simple, easy, and very profitable.
pikiwiki (1 year ago)
there is nothing but manipulation in forex
Pun Jab I (2 years ago)
davidFreiheit there can be but it does not always work for them either but you do not need 100% rate to profit. odds are in the banks' favor.
BillG37 (2 years ago)
There IS bank manipulation in forex! I didn't believe it at first. I knew the Indices were manipulated.
Day Trading Forex Live (2 years ago)
I would disagree with you and the facts do as well. Below are just 3 links or countless others that talk about forex market manipulation and banks admitting to it, as well as paying large fines because of it. This is not really the manipulation I refer to in the video above, but it illustrates the point that there is in fact manipulation even in the forex market. http://www.cnbc.com/2014/03/11/forex-manipulation-how-it-worked.html http://www.nytimes.com/2015/05/21/business/dealbook/5-big-banks-to-pay-billions-and-plead-guilty-in-currency-and-interest-rate-cases.html?_r=0 http://www.bbc.com/news/business-30003693 -Sterling
daddykab (3 years ago)
Good info....
Day Trading Forex Live (3 years ago)
+daddykab Thanks...glad you liked it! -Sterling
blazemk (3 years ago)
Dont trade on fundamental news and on a 15 minute chart, you will not make money in the long term .
Aussie Trader (11 months ago)
Trading on a 15min is not profitable?? I've been doing it for years (long term) & its called scalping lol!
Day Trading Forex Live (3 years ago)
+blazemk I would agree....we should not trade fundamental news. This is part of our trade management criteria actually. Trading on a 15M chart is however profitable as I have been doing it live for the last 6 years I have been running Day Trading Forex Live. You can find more info here. http://www.daytradingforexlive.com/trading-results-for-october-2015-profitable-fx-day-trading-strategy/ -Sterling
Transhuman Mercury (4 years ago)
This explanation is true in part, however the reality is that if you look at the re-occuring ratio and pattern that forms during these news periods, you will see what is almost a perfect sinewave type spike inducement, that has actually been test run just prior, in the off peak times. This characteristic and behaviour is merely a very simple and easy way for the market makers to collect s/l and t/p and to ride and front run the liquidity in the process and is compounded by the nature of the blackboxes (brokerages) response to these movements. It regulates any profit accumulated, or long-term positions held by the retail sector hence the almost perfect 360 degree buy/sell ratio that is not always reflected in the volumes.
HardRightEdge FXTRADER (4 years ago)
I just stay away from the news 1/2 hour before and 1/2 hour after. I'm an in and out trader...10-15 pips at a time so I'm able to stay away from the news and trend change. Good video buddy!
HardRightEdge FXTRADER (4 years ago)
yes exactly! that's were most retail money is lost. trade good my friend!
Day Trading Forex Live (4 years ago)
Hey Jimmy...I use the same rule to avoid news. Any news that has the ability to spike the market more than 15 pips I avoid. I will however enter after the news has been released if a setup as discussed in the video occurs.
Chrisler Laid (4 years ago)
This is not really a huge problem. They can and may move the markets with huge equities; I'll just ride along the wave to gain profit using technical indicators.
Day Trading Forex Live (3 years ago)
+John McNeil I would agree with you John...this is why I personally do not make trading decision from indicators. All the best in your trading. -Sterling
Day Trading Forex Live (3 years ago)
+IDontPostPorn hahaha....I deleted his comment for you. You would not believe how many spam comments the DTFL channel gets. Unfortunately when you are a large channel you get spammed. -Sterling
Day Trading Forex Live (4 years ago)
The important take away from this video is not that this is a problem...rather it is an opportunity to take advantage of a potential market direction change. -Sterling
David Smith (4 years ago)
so true! Popular Chart Levels are most often manipulated to create faked Trading Signals and to allow for Stop Runs by the Forex  Manipulators  Some manipulated Trading Levels:  Important Highs/ Lows  Round Numbers  Pivot Points
Forex Strategy (3 years ago)
+David Smith (Forex trader) Very true
Harold Wiggins (4 years ago)
you still didn't discuss how to profit from manipulation lol. All you can really do is expect fakeouts to happen not much you can really do.
Doctor Doc (1 year ago)
Harold Wiggins think more like a bank is how you profit. When you know what banks will do you know not to jump in too quick and get stopped out by the big banks. Instead be patient and smart and wait for the banks to play there cards first(that initial huge move in the opposite direction). Always be confident in your move. Banks know that there are really smart retail traders out there and they know we know how to trade simple news. Banks will fake out the expected trend just to counter trend to get a better position. Buy limits and Sell Limit placement, timing and patience is all you need. And think like the banks. Let them make the first move. I learned this a couple days ago trading the US NFP(non farm payroll)
Day Trading Forex Live (3 years ago)
+Harold Wiggins This is a 12 minute video. There is no way to explain every aspect of how we trade and profit from market manipulation in such a short time. If you would like to learn more we have many videos that detail the process further. We also have a great deal of information on our site that details the entry, trade management, and other aspects. http://www.daytradingforexlive.com -Sterling
smarthelping (4 years ago)
What platform is best for U.S. traders that is ECN and doesn't require a high net worth. I have net worth under $20,000 and am looking at a $1,000 deposit. Best way to start in forex with this criteria?
Sterling Suhr (4 years ago)
Any broker in the states now a days isn't bad given the heavy regulation. The key is avoiding high volatility such as news time. Many people get slipped by the broker during something like Non Farm Payroll and then they blame the broker. Avoid this time and most brokers will be fine. I have a lot of experience with MB Trading. They have been a good broker for a long time. Do your own DD though. -Sterling
Joe Curcuru (4 years ago)
Thank you.
Joshua Allison (5 years ago)
this is real truth.. thanks for posting this small piece of the puzzle
Sterling Suhr (4 years ago)
Glad you enjoyed the video.
voodster (5 years ago)
There is manipulation every day, got it, but it doesn't mean your chosen entry pattern will happen.  People will watch your video and be led to believe you frequently take advantage of this - you don't.  What you didn't mention is your confirming entry didn't occur on the buy.  As for the sell off the top, you would've been either stopped out prior to the hard collapse or not filled if you placed a limit order after the 2nd probe of the resistance.  Be real.
Day Trading Forex Live (5 years ago)
Thanks for the comment. I think you might have missed the point of the video....if you go back and re-watch it you will not hear me say that a trade was taken or that I took the trade. The purpose of the video is to illustrate the manipulation prior to or during a news release. I didn't think I had to say this as I would assume it goes without saying but I'll say it just to be clear....we most definitely DO NOT catch every news based stop run. In fact if I catch 30% of these news based setups I would be happy. News based manipulation should only represent a very small portion of your trades and thus I look at them as a bonus rather than a consistent staple. All the best. -Sterling
Benedict Solpico (5 years ago)
So basically, watch support+resistance levels, if there is news that wants to break those lines, from there, trade opposite direction?
Day Trading Forex Live (5 years ago)
Its really a question of where the money is. Previous turning points have the greatest ability to collect orders and thus why they tend to be what we term as manipulation points. After we identify a potential level we still must see our entry criteria satisfied.f
asdfbeau (5 years ago)
that's just considered fading the move and it isn't a bad strategy, but you'll be more successful when you combine fading with fundamental backup (or primary) reason for entering a trade.  that is essentially what the banks are doing: they have an overarching bias, and are using moves in the _opposite_ direction to get good prices.
Bus5951 (5 years ago)
Thanks for this new video! I have just one question. Sterling, did you get that trade on GBPUSD on 25 Feb? It seems to me, that the confirming entry did not give a chance to take it. The second candle (confirming candle) was just to large and there was no pullback. Am I right?
jayzee (4 years ago)
+Day Trading Forex Live dou ever fade ive watched your ill call it "door step candle pattern vids" but if you look at a strat i learnt look it is on your chart 7x it was correct so when the NEWS comes out if u can jump on it if you dont have patience BUT WAIT if you can **4 candles** so NEWS FEED wait 4 CANDLES then do the opposite so **news feed at 3pm is bad news it goes bearish 100 pips wait 3-4 5-15m candles then do go bullish on your chart it show that was correct 7x thats 7 correct trades now if i did that and your door step pattern imma be loaded lol
Day Trading Forex Live (5 years ago)
You are spot on. I touch on this a bit more in the comment above. Happy Trading! -Sterling

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