what's good main welcome to boot camp day number eight i think um and today we're back with another trading video no no discipline just charts okay um and today whoa we're going to get into Really the probably the largest topic and the most important topic of my strategy really which is Liquidity so with that being said there. I think this is going to make we're going to make this three parts. Okay today And this is just so you guys can fully understand this shit, because I really want to make sure that you guys completely understand this, okay? So, we are going to start off with today, just go- going over what liquidity is and why we want to use it in the market.
Okay. That's it. Just what it is, why we want to use it, how it makes the markets move. And that is it.
We're not going to talk about how to spot it. We're not going to talk about any of that. Okay. We're not going to talk about how to take a trade off of that.
That will be in parts two and three. Okay. Today, we just need to understand why we are using it. Okay. And that's, that's, this is why I really love the strategy that I use because there's reasoning.
behind the trades that we're taking instead of, you know, like support and resistance, like, oh, it bounced off a floor. So I'm going to buy and put money at risk. That makes no sense to me whatsoever.
That like you're, you're, that's like guessing for being honest, right? Like, oh, a floor and it broke through the floor and now it is on this and now it's retesting it as a ceiling. Come on guys. Like we want to know actually why price is reacting and why price is moving the way that it is.
So that's what we're going to focus on throughout this entire bootcamp. So you guys can actually understand why price is moving the way that it is. And then also, right, so we can have a better understanding of the strategy that we're using, right? And that's very important when doing this type of stuff. So not much that's going to be put on the chart today, mainly just going to be me talking to you, mainly going to be me saying, hey, this is why we use liquidity.
This is what it is. And this is why it moves the market. So with that, I'm going to end the video.
With that being said, let's get into it. So what is liquidity and why do we want to use it? So essentially, liquidity is what I would like to call resting orders.
And there's multiple different orders that we can consider liquidity as. It can be stop orders, meaning getting people out of a trade. It can also be limit orders like a buy limit or a sell limit.
OK, meaning when these. these price targets get hit, it's activating something. Okay.
It's either taking you out of the market or it's entering you into the market. Okay. That's, that's pretty much what liquidity is, right? It's a pool.
It's a pool of money, right? And when it's a price point where, when that price point gets achieved, people are going to be entering the market and exiting the market. Meaning there's a lot of liquidity.
There's a lot of money getting cycled through the market during this point in time. Okay. So with that being.
being said, all right, why would we want to target these areas, okay, also, I feel bad for my gardener, because Boogie doesn't have, I don't have fucking, I don't have, damn, I feel hella bad, I don't have, I don't have dog bags for him yet, and bro has to, like, pick up all of Boogie's shit, and he just walked past me, anyways, let's keep talking, okay, so, right, that's what liquidity is, why, why is that it's so important to us, well, with that in mind, right? And then also understanding that banks, hedge funds, or not hedge funds, banks, institutions, okay? These market movers, right?
The people that are actually causing the market to move, they have these massive orders, okay? So think about it, right? Think about a stock exchange. When I buy one share of Apple, that means somebody is selling me one share of Apple. We don't see it, but back in the day, right?
People used to say, I would like one share of Apple, and then someone would have to sell that to him, okay? Send them the paperwork so he, boom, I have a share of Apple stock. Okay, but now with brokerages and exchanges, they pretty much simplify this process and make it way easier. Okay, because now it's all digitalized.
You can press a button and instantly get filled. Your order gets filled, right? It's all through the exchange. It's all through the brokerage.
However, it's still the same concept. So if we want to place a buy order, we need someone to sell it back to us. Luckily, since we're in this digital age when we just want one share of Apple, it's pretty fucking easy.
for the brokerage or the exchange to be like, oh yeah, we found somebody else who's selling their Apple stock right the fuck now. Or, right, what some of these offshore brokerages do, they'll They'll pretty much trade against you. Okay, that's what B-booking a trader means.
And we won't get too deep into this, but essentially, if you press buy, the broker is pretty much taking a sell order by assuming. So they're filling. the order for you and pretty much assuming that you are going to lose the trade because 98% of traders fail.
But anyways, once we understand that there's an exchange, right? And we have to exchange these in order for our orders to be filled. Now going back to these banks and the market movers, how are they going to get their massive orders filled, right? How are they going to get those massive orders filled? When, right, like how are they going to get a bunch of people willing to sell to them when they want to or willing to sell when they want to press buy through liquidity sweeps, through taking out liquidity, right?
So back to the first thing that we were talking about, there are certain price points and we'll. understand where to spot them and when later, okay, in two days, okay, not tomorrow, but in the day after, okay, we will understand how to spot this on the chart, okay, right now, I just want you guys to understand this, okay, so these banks, they are seeking liquidity so that they can move the market in the direction that they want to. Yes, they are the people that move the market no matter what, right?
But how are they able to fill those orders? By seeking out liquidity so that they have so many people exiting the market, entering the opposite direction of them, so those orders can get filled, so they can move the market in the direction that they want to. Does that make sense, right?
And then now, why are we taking trades off of it? why is it that important to us? Well, obviously we want to be going in the same direction that the market is going and who moves the market, the fucking banks.
Okay. So the banks, they're moving the markets where they want it to go. What are they always doing? They're seeking liquidity so they can push market in whatever direction they want. So wouldn't it be smart for us to understand where liquidity is and then understand once liquidity gets taken out and then we get a confirmation, which we will talk about in two days, a confirmation, which which we can already talk about, a break of structure, right?
A confirmation of a market structure shift, right? Because we talked about that, right? When we see a break of structure, that means, okay, trends have shifted.
There's a change in direction within the market. And that is the confirmation that, okay, liquidity has been swept and orders have been filled, causing the market to change direction. And that is what causes your trades to hit take profit.
Not no, oh, it bounced off of a floor. Not, oh, it hit its head. on the ceiling. That's like a fucking story time, bro.
That's like little kid shit. Okay, we don't want to do that. Also, pardon me, my fucking gardeners are going crazy, so I'll try and wrap this up pretty quick.
Or let me actually close this. Let's see if that works. Not really.
But anyways, that's why we want to understand where that is so we can get in at the beginning of the move. Right. We understand. OK, liquidity, liquidity was taken out.
We see a trend shift, a trend change. It's ready to go. We know where market wants to go, right? And that's what we're trying to see. We're trying to figure out where those resting orders are.
We're trying to see market push to that price point. We're trying to see then... Then a shift in direction of market structure. And guys, if we don't see a shift in direction, if we don't see anything, perfect. Hands off.
We're not doing anything, right? It's easy to say, okay, there's liquidity here. and if price gets to it, you're not immediately pressing buy.
You're not immediately pressing sell, right? We need more confirmation, and again, this is why I love my strategy so much. Damn, they're ear raping. I'm sorry, guys.
This is why I love my strategy so much, because we're able to take these types of trades with confidence and fucking confluence with the market and understanding that, okay, liquidity was taken out, and now we see a trend shift. a break of structure, a market structure shift, like that's confirmation that the market's going to go, you know, like the orders have been filled and we, and we see the orders getting filled and we know the orders have been filled due to that market structure shift. Does that, does that make sense? And do you guys understand why we want to understand where liquidity lies in the market now? Because that's where price, that's where price or the market movers, the banks are seeking, they're seeking that liquidity so they can move price in whatever direction.
they want because when it hits those prices when they can fill their orders that's when they can execute and that's when we execute as well we're not damn I'm really sorry I'll wrap this up soon. We're not executing right when they execute. We got to wait a little bit, right? Because we don't know exactly when they press that button, but we can get still an incredibly good entry, okay? By literally catching the tops in the bottoms of moves.
If you notice, pretty much every single one of my trades, it's not already in a trend. It's at the top or the bottom of a trend. Okay, we catch the full move every single time. Okay? Because, damn, bro.
Dude, because we're thinking the same as the market movers, okay? We're understanding that their orders have been filled, okay? Damn.
And we're also understanding and knowing that, okay, their orders have been filled. We see a market structure shift and it's ready to go, okay? So that is liquidity explained, all right?
I'm going to cut this a little bit short because we got the gardeners going on. We'll go more in depth about how to. spot this, how to know what price points these guys, these are at.
Okay. Tomorrow or not tomorrow in two days for liquidity part two. And then we'll also talk about how to execute and how to understand even more about liquidity in part three.
Okay. So with that being said, hopefully you guys took some notes from this for your homework today. I don't have much homework for you guys for this, to be honest, this is just, dude, I'm so sorry. This is just a learning.
This is just something to learn from. Okay. This is what I just want you to watch this video three or four times, fully understand the concept of liquidity, and that's all you need. Okay. I'll catch you guys tomorrow in the next video.
Peace out.