0:00 what's good Maine welcome to boot camp
0:04 day number eight I think
0:08 um and today we're back with another
0:09 trading video no no discipline uh just
0:13 charts okay
0:15 um and today
0:17 whoa we're going to get into
0:20 really the probably the largest topic
0:23 and the most important topic of my
0:26 strategy really which is liquidity so
0:29 with that being said there I think this
0:31 is going to make we're going to make
0:32 this three parts okay today and this is
0:36 just so you guys can fully understand
0:38 this [ __ ]
0:39 um because I really want to make sure
0:41 that you guys completely understand this
0:43 okay
0:45 um so we are going to start off with
0:48 today just going over what liquidity is
0:52 and why we want to use it in the market
0:54 okay that's it just what it is why we
0:58 want to use it how it makes the markets
1:00 move and that is it we're not going to
1:02 talk about how to spot it we're not
1:04 going to talk about
1:05 any of that okay we're not going to talk
1:07 about how to take a trade off of that
1:09 that will be in Parts two and three okay
1:10 today we just need to understand why we
1:13 are using it okay and that's that's this
1:15 is why I really love the strategy that I
1:17 use because there's reasoning behind the
1:21 trades that we're taking instead of you
1:23 know like support and resistance like oh
1:25 it bounced off a floor so I'm going to
1:30 buy and put money at risk that makes no
1:33 sense to me whatsoever that like you're
1:37 you're that's like guessing for being
1:40 honest right like oh a floor and it
1:44 broke through the floor and now it is on
1:46 this and now it's re-testing it as a
1:48 ceiling come on guys like we want to
1:50 know actually why price is reacting and
1:52 why price is moving the way that it is
1:54 so that's what we're going to focus on
1:56 throughout this entire boot camp so you
1:58 guys can actually understand why price
1:59 is moving the way that it is and then
2:00 also right so we can have a better
2:03 understanding of the strategy that we're
2:05 using right and that's very important
2:07 when when doing this type of stuff so
2:10 not much that's going to be put on the
2:12 chart today mainly just going to be me
2:13 talking to you mainly going to be me
2:15 saying hey this is why we use liquidity
2:17 this is what it is and this is why it
2:18 moves the market so with that being said
2:20 let's get into it so
2:23 what is liquidity and why do we want to
2:26 use it so essentially liquidity is what
2:30 I would like to call resting orders and
2:32 there's there's multiple different
2:33 orders that we can consider liquidity as
2:36 it can be stop orders meaning getting
2:39 people out of a trade it can also be
2:41 limit orders like
2:43 um a a buy limit or a sell limit okay
2:48 meaning when these these price targets
2:50 get hit it's activating something okay
2:53 it's either taking you out of the market
2:54 or it's entering you into the market
2:56 okay that's that's pretty much what
2:58 liquidity is right it's a pool it's a
3:01 pool of money right and when it's a
3:03 price point where when that price point
3:06 gets achieved people are going to be
3:08 entering the market and exiting the
3:10 market meaning there's a lot of
3:11 liquidity there's a lot of money getting
3:13 cycled through the market during this
3:15 point in time okay so
3:18 with that being said all right
3:21 why would we want to Target these areas
3:24 okay also I feel bad for my Gardener
3:25 because Boogie doesn't have um
3:28 I don't have uh [ __ ] I don't have um
3:32 damn I feel hella bad I don't have I
3:34 don't have dog bags for them yet and bro
3:35 has to like pick up all of Boogie [ __ ]
3:38 and he just walked past me
3:41 anyways let's keep talking okay so right
3:44 that's what liquidity is why why is that
3:46 it's so important to us well with that
3:48 in mind
3:50 right
3:51 and then also understanding that Banks
3:53 hedge funds or not hedge funds Banks
3:56 institutions okay these these Market
3:58 Movers right the people that are
4:00 actually causing the market to move they
4:02 have these massive orders okay
4:04 so think about it right think about a
4:06 stock exchange when I buy one share of
4:08 Apple that means somebody is selling me
4:10 one share of Apple we don't see it but
4:12 back in the day right people used to say
4:14 I would like one share of Apple and then
4:15 someone would have to sell that to him
4:17 okay send them the paperwork so he boom
4:21 I have a share of Apple stock okay but
4:24 now with brokerages and exchanges they
4:26 pretty much simplify this process and
4:28 make it way easier okay because now it's
4:31 all digitalized you can press a button
4:33 and instantly get filled your order gets
4:34 filled right it's all through the it's
4:36 all through the exchange it's all
4:37 through the brokerage however it's still
4:39 the same concept so if we want to place
4:41 a buy order we need someone to sell it
4:43 back to us luckily since we're in this
4:45 digital age when we just want one share
4:47 of Apple it's pretty [ __ ] easy for
4:49 The Brokerage or the exchange to be like
4:51 oh yeah we found somebody else who's
4:53 selling their Apple stock right the [ __ ]
4:55 now or right what some of these offshore
4:58 brokerages do they'll they'll pretty
5:00 much trade against you okay that's
5:02 that's what be booking a Trader means
5:05 and we won't get too deep into this but
5:06 essentially you you if you press buy the
5:09 broker is pretty much taking a sell
5:11 order by assuming um but so they're
5:14 they're filling the order for you and
5:16 pretty much assuming that you are going
5:18 to lose the trade because 98 of trade is
5:20 fail but anyways once we understand that
5:23 there there's an exchange right and we
5:25 have to exchange these in order for our
5:28 orders to be filled
5:30 now going back to these these Banks and
5:33 the Market Movers how are they going to
5:36 get their massive orders filled right
5:40 how are they going to get those massive
5:42 orders filled
5:44 when right like how are they going to
5:46 get a bunch of people willing to sell to
5:48 them when they want to pre or willing to
5:50 sell when they want to press Buy
5:52 through liquidity sweeps through taking
5:54 out liquidity right so back to the first
5:57 thing that we were talking about there's
5:58 certain price points and we'll
5:59 understand when where to spot them and
6:01 when later okay in two days okay
6:04 um not tomorrow but in the day after
6:06 okay we will understand how to spot this
6:09 on the chart okay right now I just want
6:11 you guys to understand this okay so
6:15 the these Banks they are seeking
6:18 liquidity so that they can move the
6:21 market in the direction that they want
6:22 to yes they are the people that move the
6:24 market no matter what right but how are
6:26 they able to fill those orders by
6:28 seeking out liquidity so that they have
6:30 so many people exiting the market
6:32 entering the opposite direction of them
6:34 so those orders can get filled so they
6:36 can move the market in the direction
6:37 that they want to
6:39 does that make sense
6:40 right and then now why are we taking
6:43 trades off of it and why is it that
6:45 important to us well obviously we want
6:47 to be going in the same direction that
6:49 the market is going and who moves the
6:51 market the [ __ ] Banks okay so the
6:52 banks
6:53 they're moving the markets where they
6:55 want it to go what are they always doing
6:57 they're seeking liquidity so they can
6:59 push Market in whatever Direction they
7:00 want so wouldn't it be smart for us to
7:02 understand where liquidity is and then
7:05 understand once liquidity gets taken out
7:07 and then we get a confirmation which we
7:10 will talk about
7:11 um in two days a confirmation which
7:14 can't which we can already talk about a
7:16 break of structure right a confirmation
7:18 of a market structure shift right
7:20 because we talked about that right when
7:22 when we see a break of structure that
7:23 means okay Trends have shifted
7:25 there's a change in Direction within the
7:27 market and that is the confirmation that
7:30 okay liquidity has been swept and orders
7:32 have been filled causing the market to
7:34 change direction and that is what causes
7:36 your trades to hit take profit not know
7:39 oh it bounced off of a floor not oh it
7:43 hit its head on the ceiling that's
7:45 that's like a [ __ ] story time bro
7:48 that's like little kid [ __ ] okay we
7:50 don't want to do that also part of me my
7:52 [ __ ] gardeners are going crazy so
7:53 I'll try and wrap this up pretty quick
7:56 or let me actually close this
8:04 see if that works not really but anyways
8:07 that's why we want to understand where
8:09 that is so we can get in at the
8:11 beginning of the move right we
8:12 understand okay liquidity liquidity was
8:14 taken out we see a trend shift a trend
8:17 change
8:19 it's right it's ready to go we know
8:21 where Market wants to go right and
8:24 that's what we're trying to see we're
8:25 trying to figure out where those resting
8:28 orders are we're trying to see Market
8:31 push to that price point we're trying to
8:34 see then a shift in direction of Market
8:37 structure and guys if we don't see a
8:40 shift in direction if we don't see
8:41 anything perfect hands off we're not
8:43 doing anything right it's easy to say
8:46 okay there's liquidity here there's
8:47 liquidity here there's liquidity here
8:50 and if if price gets to it you're not
8:52 immediately pressing by you're not
8:54 immediately pressing sell right we need
8:55 more confirmation and and again this is
8:57 why I love my strategy so much damn
9:00 they're they're ear raping I'm sorry
9:01 guys
9:02 um this is why I love my strategy so
9:03 much because we're able to take these
9:06 types of Trades with with confidence and
9:10 and it and [ __ ] Confluence with the
9:13 market and and understanding that okay
9:15 liquidity was taken out and now we see a
9:18 TR a trend shift a break of structure a
9:21 market structure shift
9:23 like that's confirmation that the
9:25 Market's gonna go you know like the
9:27 orders have been filled and we and we
9:28 see the orders getting filled and we
9:30 know the orders have been filled due to
9:32 that market structure shift does that
9:34 does that make sense and do you guys
9:35 understand why we want to understand
9:37 where liquidity lies in the market now
9:39 because that's where price that's where
9:42 price or the Market Movers the banks are
9:46 seeking they're seeking that liquidity
9:47 so they can move price in whatever
9:49 Direction they want because when it hits
9:51 those prices when they can fill their
9:53 orders that's when they can execute and
9:55 that's when we execute as well we're not
9:57 damn I'm really sorry I'll wrap this up
10:00 soon
10:01 um that's that's we're not executing
10:03 right when they execute we got to wait a
10:05 little bit right because we don't know
10:06 exactly when that when they press that
10:08 button but we can get a still a
10:10 incredibly good entry
10:12 okay like literally catching the tops
10:15 and the bottoms of moves if you notice
10:16 pretty much every single one of my
10:18 trades it's not already in a trend it's
10:20 at the top or the bottom of a trend okay
10:22 we catch the full move every single time
10:26 okay
10:27 because damn bro speak dude because
10:32 we're we're thinking the same as the
10:35 Market Movers okay we're we're
10:37 understanding that their orders have
10:39 been filled okay
10:41 damn and we're also understanding and
10:46 knowing that okay their orders have been
10:48 filled we see a market structure shift
10:50 and it's ready to go okay so that is
10:53 liquidity explained all right I'm going
10:55 to cut this a little bit short because
10:56 we got the gardeners going on we'll go
10:58 more in depth about how to spot this how
11:00 to know what price points these got
11:02 these are at okay tomorrow or not
11:05 tomorrow in two days for
11:08 liquidity part two and then we'll also
11:11 talk about how to execute and how to
11:13 understand even more about liquidity in
11:15 part three okay so with that being said
11:17 hopefully you guys took some notes from
11:19 this for your homework today I don't
11:21 have much homework for you guys for this
11:23 to be honest this is just
11:25 dude I'm so sorry this is just a
11:27 learning this is just something to learn
11:29 from okay this is what I just want you
11:31 to watch this video three or four times
11:33 fully understand the concept of
11:35 liquidity and that's all you need okay
11:37 I'll catch you guys tomorrow in the next
11:39 video peace out jizz
Chrome Extension