Boot Camp Day 8: Liquidity Pt 1 — Transcript

Full transcript

1. 0:00what's good Maine welcome to boot camp
2. 0:04day number eight I think
3. 0:08um and today we're back with another
4. 0:09trading video no no discipline uh just
5. 0:13charts okay
6. 0:15um and today
7. 0:17whoa we're going to get into
8. 0:20really the probably the largest topic
9. 0:23and the most important topic of my
10. 0:26strategy really which is liquidity so
11. 0:29with that being said there I think this
12. 0:31is going to make we're going to make
13. 0:32this three parts okay today and this is
14. 0:36just so you guys can fully understand
15. 0:38this [ __ ]
16. 0:39um because I really want to make sure
17. 0:41that you guys completely understand this
18. 0:43okay
19. 0:45um so we are going to start off with
20. 0:48today just going over what liquidity is
21. 0:52and why we want to use it in the market
22. 0:54okay that's it just what it is why we
23. 0:58want to use it how it makes the markets
24. 1:00move and that is it we're not going to
25. 1:02talk about how to spot it we're not
26. 1:04going to talk about
27. 1:05any of that okay we're not going to talk
28. 1:07about how to take a trade off of that
29. 1:09that will be in Parts two and three okay
30. 1:10today we just need to understand why we
31. 1:13are using it okay and that's that's this
32. 1:15is why I really love the strategy that I
33. 1:17use because there's reasoning behind the
34. 1:21trades that we're taking instead of you
35. 1:23know like support and resistance like oh
36. 1:25it bounced off a floor so I'm going to
37. 1:30buy and put money at risk that makes no
38. 1:33sense to me whatsoever that like you're
39. 1:37you're that's like guessing for being
40. 1:40honest right like oh a floor and it
41. 1:44broke through the floor and now it is on
42. 1:46this and now it's re-testing it as a
43. 1:48ceiling come on guys like we want to
44. 1:50know actually why price is reacting and
45. 1:52why price is moving the way that it is
46. 1:54so that's what we're going to focus on
47. 1:56throughout this entire boot camp so you
48. 1:58guys can actually understand why price
49. 1:59is moving the way that it is and then
50. 2:00also right so we can have a better
51. 2:03understanding of the strategy that we're
52. 2:05using right and that's very important
53. 2:07when when doing this type of stuff so
54. 2:10not much that's going to be put on the
55. 2:12chart today mainly just going to be me
56. 2:13talking to you mainly going to be me
57. 2:15saying hey this is why we use liquidity
58. 2:17this is what it is and this is why it
59. 2:18moves the market so with that being said
60. 2:20let's get into it so
61. 2:23what is liquidity and why do we want to
62. 2:26use it so essentially liquidity is what
63. 2:30I would like to call resting orders and
64. 2:32there's there's multiple different
65. 2:33orders that we can consider liquidity as
66. 2:36it can be stop orders meaning getting
67. 2:39people out of a trade it can also be
68. 2:41limit orders like
69. 2:43um a a buy limit or a sell limit okay
70. 2:48meaning when these these price targets
71. 2:50get hit it's activating something okay
72. 2:53it's either taking you out of the market
73. 2:54or it's entering you into the market
74. 2:56okay that's that's pretty much what
75. 2:58liquidity is right it's a pool it's a
76. 3:01pool of money right and when it's a
77. 3:03price point where when that price point
78. 3:06gets achieved people are going to be
79. 3:08entering the market and exiting the
80. 3:10market meaning there's a lot of
81. 3:11liquidity there's a lot of money getting
82. 3:13cycled through the market during this
83. 3:15point in time okay so
84. 3:18with that being said all right
85. 3:21why would we want to Target these areas
86. 3:24okay also I feel bad for my Gardener
87. 3:25because Boogie doesn't have um
88. 3:28I don't have uh [ __ ] I don't have um
89. 3:32damn I feel hella bad I don't have I
90. 3:34don't have dog bags for them yet and bro
91. 3:35has to like pick up all of Boogie [ __ ]
92. 3:38and he just walked past me
93. 3:41anyways let's keep talking okay so right
94. 3:44that's what liquidity is why why is that
95. 3:46it's so important to us well with that
96. 3:48in mind
97. 3:50right
98. 3:51and then also understanding that Banks
99. 3:53hedge funds or not hedge funds Banks
100. 3:56institutions okay these these Market
101. 3:58Movers right the people that are
102. 4:00actually causing the market to move they
103. 4:02have these massive orders okay
104. 4:04so think about it right think about a
105. 4:06stock exchange when I buy one share of
106. 4:08Apple that means somebody is selling me
107. 4:10one share of Apple we don't see it but
108. 4:12back in the day right people used to say
109. 4:14I would like one share of Apple and then
110. 4:15someone would have to sell that to him
111. 4:17okay send them the paperwork so he boom
112. 4:21I have a share of Apple stock okay but
113. 4:24now with brokerages and exchanges they
114. 4:26pretty much simplify this process and
115. 4:28make it way easier okay because now it's
116. 4:31all digitalized you can press a button
117. 4:33and instantly get filled your order gets
118. 4:34filled right it's all through the it's
119. 4:36all through the exchange it's all
120. 4:37through the brokerage however it's still
121. 4:39the same concept so if we want to place
122. 4:41a buy order we need someone to sell it
123. 4:43back to us luckily since we're in this
124. 4:45digital age when we just want one share
125. 4:47of Apple it's pretty [ __ ] easy for
126. 4:49The Brokerage or the exchange to be like
127. 4:51oh yeah we found somebody else who's
128. 4:53selling their Apple stock right the [ __ ]
129. 4:55now or right what some of these offshore
130. 4:58brokerages do they'll they'll pretty
131. 5:00much trade against you okay that's
132. 5:02that's what be booking a Trader means
133. 5:05and we won't get too deep into this but
134. 5:06essentially you you if you press buy the
135. 5:09broker is pretty much taking a sell
136. 5:11order by assuming um but so they're
137. 5:14they're filling the order for you and
138. 5:16pretty much assuming that you are going
139. 5:18to lose the trade because 98 of trade is
140. 5:20fail but anyways once we understand that
141. 5:23there there's an exchange right and we
142. 5:25have to exchange these in order for our
143. 5:28orders to be filled
144. 5:30now going back to these these Banks and
145. 5:33the Market Movers how are they going to
146. 5:36get their massive orders filled right
147. 5:40how are they going to get those massive
148. 5:42orders filled
149. 5:44when right like how are they going to
150. 5:46get a bunch of people willing to sell to
151. 5:48them when they want to pre or willing to
152. 5:50sell when they want to press Buy
153. 5:52through liquidity sweeps through taking
154. 5:54out liquidity right so back to the first
155. 5:57thing that we were talking about there's
156. 5:58certain price points and we'll
157. 5:59understand when where to spot them and
158. 6:01when later okay in two days okay
159. 6:04um not tomorrow but in the day after
160. 6:06okay we will understand how to spot this
161. 6:09on the chart okay right now I just want
162. 6:11you guys to understand this okay so
163. 6:15the these Banks they are seeking
164. 6:18liquidity so that they can move the
165. 6:21market in the direction that they want
166. 6:22to yes they are the people that move the
167. 6:24market no matter what right but how are
168. 6:26they able to fill those orders by
169. 6:28seeking out liquidity so that they have
170. 6:30so many people exiting the market
171. 6:32entering the opposite direction of them
172. 6:34so those orders can get filled so they
173. 6:36can move the market in the direction
174. 6:37that they want to
175. 6:39does that make sense
176. 6:40right and then now why are we taking
177. 6:43trades off of it and why is it that
178. 6:45important to us well obviously we want
179. 6:47to be going in the same direction that
180. 6:49the market is going and who moves the
181. 6:51market the [ __ ] Banks okay so the
182. 6:52banks
183. 6:53they're moving the markets where they
184. 6:55want it to go what are they always doing
185. 6:57they're seeking liquidity so they can
186. 6:59push Market in whatever Direction they
187. 7:00want so wouldn't it be smart for us to
188. 7:02understand where liquidity is and then
189. 7:05understand once liquidity gets taken out
190. 7:07and then we get a confirmation which we
191. 7:10will talk about
192. 7:11um in two days a confirmation which
193. 7:14can't which we can already talk about a
194. 7:16break of structure right a confirmation
195. 7:18of a market structure shift right
196. 7:20because we talked about that right when
197. 7:22when we see a break of structure that
198. 7:23means okay Trends have shifted
199. 7:25there's a change in Direction within the
200. 7:27market and that is the confirmation that
201. 7:30okay liquidity has been swept and orders
202. 7:32have been filled causing the market to
203. 7:34change direction and that is what causes
204. 7:36your trades to hit take profit not know
205. 7:39oh it bounced off of a floor not oh it
206. 7:43hit its head on the ceiling that's
207. 7:45that's like a [ __ ] story time bro
208. 7:48that's like little kid [ __ ] okay we
209. 7:50don't want to do that also part of me my
210. 7:52[ __ ] gardeners are going crazy so
211. 7:53I'll try and wrap this up pretty quick
212. 7:56or let me actually close this
213. 8:04see if that works not really but anyways
214. 8:07that's why we want to understand where
215. 8:09that is so we can get in at the
216. 8:11beginning of the move right we
217. 8:12understand okay liquidity liquidity was
218. 8:14taken out we see a trend shift a trend
219. 8:17change
220. 8:19it's right it's ready to go we know
221. 8:21where Market wants to go right and
222. 8:24that's what we're trying to see we're
223. 8:25trying to figure out where those resting
224. 8:28orders are we're trying to see Market
225. 8:31push to that price point we're trying to
226. 8:34see then a shift in direction of Market
227. 8:37structure and guys if we don't see a
228. 8:40shift in direction if we don't see
229. 8:41anything perfect hands off we're not
230. 8:43doing anything right it's easy to say
231. 8:46okay there's liquidity here there's
232. 8:47liquidity here there's liquidity here
233. 8:50and if if price gets to it you're not
234. 8:52immediately pressing by you're not
235. 8:54immediately pressing sell right we need
236. 8:55more confirmation and and again this is
237. 8:57why I love my strategy so much damn
238. 9:00they're they're ear raping I'm sorry
239. 9:01guys
240. 9:02um this is why I love my strategy so
241. 9:03much because we're able to take these
242. 9:06types of Trades with with confidence and
243. 9:10and it and [ __ ] Confluence with the
244. 9:13market and and understanding that okay
245. 9:15liquidity was taken out and now we see a
246. 9:18TR a trend shift a break of structure a
247. 9:21market structure shift
248. 9:23like that's confirmation that the
249. 9:25Market's gonna go you know like the
250. 9:27orders have been filled and we and we
251. 9:28see the orders getting filled and we
252. 9:30know the orders have been filled due to
253. 9:32that market structure shift does that
254. 9:34does that make sense and do you guys
255. 9:35understand why we want to understand
256. 9:37where liquidity lies in the market now
257. 9:39because that's where price that's where
258. 9:42price or the Market Movers the banks are
259. 9:46seeking they're seeking that liquidity
260. 9:47so they can move price in whatever
261. 9:49Direction they want because when it hits
262. 9:51those prices when they can fill their
263. 9:53orders that's when they can execute and
264. 9:55that's when we execute as well we're not
265. 9:57damn I'm really sorry I'll wrap this up
266. 10:00soon
267. 10:01um that's that's we're not executing
268. 10:03right when they execute we got to wait a
269. 10:05little bit right because we don't know
270. 10:06exactly when that when they press that
271. 10:08button but we can get a still a
272. 10:10incredibly good entry
273. 10:12okay like literally catching the tops
274. 10:15and the bottoms of moves if you notice
275. 10:16pretty much every single one of my
276. 10:18trades it's not already in a trend it's
277. 10:20at the top or the bottom of a trend okay
278. 10:22we catch the full move every single time
279. 10:26okay
280. 10:27because damn bro speak dude because
281. 10:32we're we're thinking the same as the
282. 10:35Market Movers okay we're we're
283. 10:37understanding that their orders have
284. 10:39been filled okay
285. 10:41damn and we're also understanding and
286. 10:46knowing that okay their orders have been
287. 10:48filled we see a market structure shift
288. 10:50and it's ready to go okay so that is
289. 10:53liquidity explained all right I'm going
290. 10:55to cut this a little bit short because
291. 10:56we got the gardeners going on we'll go
292. 10:58more in depth about how to spot this how
293. 11:00to know what price points these got
294. 11:02these are at okay tomorrow or not
295. 11:05tomorrow in two days for
296. 11:08liquidity part two and then we'll also
297. 11:11talk about how to execute and how to
298. 11:13understand even more about liquidity in
299. 11:15part three okay so with that being said
300. 11:17hopefully you guys took some notes from
301. 11:19this for your homework today I don't
302. 11:21have much homework for you guys for this
303. 11:23to be honest this is just
304. 11:25dude I'm so sorry this is just a
305. 11:27learning this is just something to learn
306. 11:29from okay this is what I just want you
307. 11:31to watch this video three or four times
308. 11:33fully understand the concept of
309. 11:35liquidity and that's all you need okay
310. 11:37I'll catch you guys tomorrow in the next
311. 11:39video peace out jizz