YouTube Transcript:
Boot Camp Day 8: Liquidity Pt 1

what's good Maine welcome to boot camp
day number eight I think
um and today we're back with another
trading video no no discipline uh 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 [ __ ]
um because I really want to make sure
that you guys completely understand this
okay
um so we are going to start off with
today just 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 re-testing 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 boot camp 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 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 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 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
um a a buy limit or a sell limit okay
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 said all right
why would we want to Target these areas
okay also I feel bad for my Gardener
because Boogie doesn't have um
I don't have uh [ __ ] I don't have um
damn I feel hella bad I don't have I
don't have dog bags for them yet and bro
has to like pick up all of Boogie [ __ ]
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 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 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 [ __ ] easy for
The Brokerage or the exchange to be like
oh yeah we found somebody else who's
selling their Apple stock right the [ __ ]
now or right what some of these offshore
brokerages do they'll they'll pretty
much trade against you okay that's
that's what be booking a Trader means
and we won't get too deep into this but
essentially you you if you press buy the
broker is pretty much taking a sell
order by assuming um but so they're
they're filling the order for you and
pretty much assuming that you are going
to lose the trade because 98 of trade is
fail but anyways once we understand that
there there's an exchange right and we
have to exchange these in order for our
orders to be filled
now going back to these 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 pre 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's
certain price points and we'll
understand when where to spot them and
when later okay in two days okay
um 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
the 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 and 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 [ __ ] 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
um in two days a confirmation which
can't 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
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 know
oh it bounced off of a floor not oh it
hit its head on the ceiling that's
that's like a [ __ ] story time bro
that's like little kid [ __ ] okay we
don't want to do that also part of me my
[ __ ] gardeners are going crazy so
I'll try and wrap this up pretty quick
or let me actually close this
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 okay liquidity liquidity was
taken out we see a trend shift a trend
change
it's right 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 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 there's
liquidity here there's liquidity here
and if if price gets to it you're not
immediately pressing by you're not
immediately pressing sell right we need
more confirmation and and again this is
why I love my strategy so much damn
they're they're ear raping I'm sorry
guys
um this is why I love my strategy so
much because we're able to take these
types of Trades with with confidence and
and it and [ __ ] Confluence with the
market and and understanding that okay
liquidity was taken out and now we see a
TR a trend shift a break of structure a
market structure shift
like that's confirmation that the
Market's gonna 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
um that's that's we're not executing
right when they execute we got to wait a
little bit right because we don't know
exactly when that when they press that
button but we can get a still a
incredibly good entry
okay like literally catching the tops
and 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 speak dude because
we're we're thinking the same as the
Market Movers okay we're 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 got
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 jizz