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Introduction To Price Action Manipulation Training

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100% found this document useful (3 votes)

1K views

Introduction To Price Action Manipulation Training

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CyberWizard

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Price Action Manipulation Program Introduction

Stock Market Basics and Market Makers

By: Alson Chew

Copyright © 2020 Adam Khoo Learning Technologies Group Pte Ltd. All Rights Reserved. 1
© 2021 Piranha Pte Ltd. All rights reserved.
INTRODUCTION TO PRICE ACTION MANIPULATION TRAINING

HOUSE RULES

1. Avoid glass full mindset

1. Put aside what you learnt about traditional technical and candlestick analysis

1. Take responsibilities for your actions

1. Performance dependent on your own sacrifices towards practicing what is taught

1. Realistic expectations from the start – Trading Plan Construction

1. Earn the right to trade for a living

1. Be patient

1. Win, lose or draw

“A peak performance trader is totally committed to being the best and doing whatever it takes
to be the best. He feels totally responsible for whatever happens and thus can learn from
mistakes. These people typically have a working business plan for trading because they treat
trading as a business.” Van K. Tharp

© 2021 Piranha Pte Ltd. All rights reserved. 2

INTRODUCTION TO PRICE ACTION MANIPULATION TRAINING

THOUGHTS ON TRADING FOR A LIVING

The trading profession is largely misunderstood and misperceived. Whether it is stocks,

forex, futures or options, it is usually viewed as gambling or risky by the public. In true
Warren Buffet style – “Risk comes from not knowing what you are doing”

As legitimate professional traders, we are the masters of risk and our emotions and for
every human weaknesses that is counterproductive to trading, we recognise and
control it with our logical mind. We are the true masters of our craft and we strive to churn
out profits consistently from the markets.

Similar to other professions, we traders will go through the learning curve – strategy, risk
control and mental toughness in the face of profit and loss.

The fundamental principles of economics is that incentive drives behaviour. It is the

incentive of the big boys which drive the price behaviour of any tradable financial products.
It is the financial incentive which drives the façade through manipulative price action to
deceive the majority of the retailers who fail to rise above their human nature.

© 2021 Piranha Pte Ltd. All rights reserved. 3

INTRODUCTION TO PRICE ACTION MANIPULATION TRAINING

WHO ARE THE MARKET MAKERS?

Function of Market Makers

✔A market maker buys and sells securities at prices it displays in an exchange’s trading
system for its own account

✔Market making enables the smooth flow of financial markets by providing liquidity

© 2021 Piranha Pte Ltd. All rights reserved. 4

INTRODUCTION TO PRICE ACTION MANIPULATION TRAINING

1.) WHAT IS THE DIFFERENCE BETWEEN TRADING AND INVESTING?

✔Goal of investing is to build wealth over an extended period of time

✔Goal of trading is to build wealth consistently over multiple periods of time

2.) WHAT IS THE DIFFERENCE BETWEEN TRADING AND GAMBLING?

✔Trading is a game of probabilities – Edge comes from strategy, risk and money
management

✔Gambling is also a game of probabilities - Edge is with the house

A good trader is not necessary a profitable trader

A profitable trader is not necessary a good trader

A good trader will eventually become profitable

A bad trader will eventually become unprofitable

© 2021 Piranha Pte Ltd. All rights reserved. 5

INTRODUCTION TO PRICE ACTION MANIPULATION TRAINING

What is a Stock Exchange?

It is a place where shares of publicly listed companies are issued and traded.

What is a Futures Exchange?

It is a place where standardized futures contracts are being traded.

What is the term Counterparty?

The person taking the other side of the trade.

© 2021 Piranha Pte Ltd. All rights reserved. 6

INTRODUCTION TO PRICE ACTION MANIPULATION TRAINING

What is Derivatives?
A financial instrument whose value is derived in part from the value and characteristics of another
financial instrument. Examples of derivatives are options, futures and warrants.

Underlying Derivatives
Stock Stock CFD
Index Futures
Stock Options
Spot Forex Forex CFD
Forex Futures
Forex Options

© 2021 Piranha Pte Ltd. All rights reserved. 7

INTRODUCTION TO PRICE ACTION MANIPULATION TRAINING

TRADING INSTRUMENTS AND PRODUCTS

1. EQUITIES, STOCKS AND SHARES
2. FUTURES
3. SPOT FOREX
4. Options

1.) EQUITIES, STOCKS AND SHARES

✔ U.S EQUITIES
✔ SINGAPORE EQUITIES

© 2021 Piranha Pte Ltd. All rights reserved. 8

INTRODUCTION TO PRICE ACTION MANIPULATION TRAINING
Types of Market Participant

Day trader or Intra-day Trader

Traders who close their trades within one trading session or day.

Position or Swing Trader

A trading method by which stocks or futures are bought or sold and held for an extended period of
time.

Order Validity Types

What is a Good till Day Order (GTD)?

A pending trade order that expires at the end of the trading day if it is not triggered.

What is a Good till Cancelled Order (GTC)?

A pending trade order that will remain valid unless cancelled by the trader.

Other type of Trading Methodology

What is Fundamental Analysis?

A method of analysing the prospects of a stock or futures by way of accepted accounting
measures such as earnings, sales, seasons and cycles etc.

INTRODUCTION TO PRICE ACTION MANIPULATION TRAINING

Directional Trading – Establish view in multi-assets

Stocks Trading CFD Trading Spot Forex Trading