Former Wall Street SCALPER Shares Top 1% Trading SECRETS

I was just looking at the charts because you know you are also the chart guy here. You're the one who's the technical part. Yeah, you're. You're the guy dealing with it in the floor, right? Yes. Because you have a lot of experience with. With the technical spark order flow and software and technologies and I think you have an amaz level of insights that we can share with people on the technical side. So I would like today to go also a little bit into the technical stuff because I'm an order flow trader myself. You know I love order flow, I love stop runs, I love icebergs. They're my used to be my most strategies I was using and so I would like to go deep into that. But before we get into the cool stuff, let's start from the beginning and how did you approach trading and how was your professional life and when did it start?

Okay, I'm start with trading. Oh, okay. I tell my story of my story of my life. I yes. Let's begin though. Yes. Before I go to after the school I go to study informatic as programming and so it's development and so but it's not what mine. It's too many theory. Yeah.

It was too theoretical.

It's not for me. I'm the guy I need to do it in something because it's my. I like to do something and so I go start to work for the bank company. It's a German 2 second large bank company As a network administrator and security guy. I was work for the forestics and hacking stuff and so yeah. Network security and so and after that I go to the Switzerland and be my self employment. I want to create a small company.

Yes.

Based on the open source software. Open source, you know, Linux stuff and I want to make open source in the Switzerland bake. But I was too small and some companies say no you are too small. It's not good, you're one person, you need more. It's not working for me. I need to close a company and I have a friend in Switzerland. She work engineer development software engineer. No, no, no, not software engineer for the building, for the houses construction. Yeah. And she told me let's put us together and we made a company and we go to the architecture company and we built some many houses and so on. Okay. Okay. I don't know nothing about architecture, building construction and so and my friends. Yeah, but you guys are very good in the Internet guy. And so we maybe we can import some many stuffs. Some many for the gun company of buildings, houses and so doors and so many furniture. And so. Okay, let's do it. And we built a company and to take some big clients for the. From his own company, India's new company. And this was the very, very rich guys. It's a rich family. It's a Jewish family. And rich are very rich. And they give us a change to make some projects with that. And we do it so perfectly that we explore. We explore in the air. First year we made maybe 7 million. Wow. Yeah, that was. And it was good start. And so come my business. And maybe three years after that. Where the boats are. Yeah, the boats club. And so where we go every evening eating and so on. They have meetings and so. And sit so many guys there. And speaking about too many. This income. If you put 1,000 in the market and you earn 10, 10,000. This the difference is the return. Return gain. Yeah, yeah, gain. Speak about lot gains. 20, 30% in the month. And we in the. You made maybe 6 to 9% in the year. Yeah. And I talked to him and I say hey guys, what are you doing? It's for me, it's a guy. It's this crime or drugs, it's not important. I would do it also.

Because they say whoa, no, no. We work for the bank. We are stock. We're trading stocks. And so. And that's one guy. I like him. And we are small. We do be as friends. And they told me if you want to learn, it's a company. But we're trade securities.

World trade securities.

We are trade securities and you cannot learn into trading. If you want, I can give you your number, call them, talk to them. Maybe you have luck and you really in. I don't call them, write an email like I'm a German guy living in Switzerland and want to trade. I learn to trade how to trading stock trading. And so two weeks later I came back. Oh wow, German guy. You want to learn? Okay, come on. Come, come on. Come, let's fly. Orlando, Florida. It was office for the. In the U.S. yeah, in the U.S.

So this was like a proprietary trading firm from Florida.

Yeah, yeah. Florida and New York. New York is a big one. And the Flor. Florida was a small one. Was. Was a trainees. Yeah. Was a trainee teacher. So okay, let's fly. And when.

When was this and which year?

That's maybe we have. That's maybe 16 years ago. 16, 17 years.

Okay. 2000, early 2000s.

Yeah, yeah, yeah, yeah. And that's. Well, so I learned stock trading pump and dumping was my strategy. And the first it's very good.

So how were you like how was it, how was it trading?

Like pump and dump today not so good, but many years ago.

So you would wait for the pump.

And then sell it. Yeah, yeah. It's really easy strategy. Yeah, many years ago. It's really, really easy money. Yeah. You need to look some places where they make marketing for some companies that scripts like forums. So you look and see how many guys oh it's new company. It's very. That's the new product that's explored million dollars. And so, so, so, so so much.

Hype on a small stock.

Yeah. And you see, look at the chart and see that's two days before you see some volume spike. So you see that some money some has buy it and the under guys that's seated maybe calling broker. So I don't know, they pump the links and you see that's a pump and you wait to the change. And if you see in the book that somebody said big you go short and take maybe 75 to $1 per trade. And you wait. That is easy. That's what's easy if you understand to read the order book without order book.

So you were starting to read the order book very early in your trading career.

Level two in the stock market sale. Level two auto book. It's more in the future market.

Yeah, but still level two.

Yeah.

Yes.

But the first. That's what I need to learn at the first. If you start with a company to learning it's the first. What you learn is audible as a level two. Because you come, you make some tests, you maybe come every month come 30 people. 30 people at the rest at the end maybe was stay in the company two or one people. And my team was two. I'm and another guy. Yeah, that's because they look what you're doing. Are you doing yourself or you make fun or you look something, something in the Internet. That's that's not what they want to see. They want to see. That's are you working, you're doing, you do something else. You need to learn, learn, learn. And then if you start they put you in one monitor and the level two order book and time and sales. And you sit there and they yeah, look, look, look what you see. And you sit and look and think what I see. What is this? I see nothing. It's. I see some prices go up and down. Red, red, red, green, green, green. Time and sales. And so what the is in there? Nothing like what what I need to learn it. It's not possible and if you but if you sometimes do. If you then after you watch a lot of time. Yes. Then you see in time and sales. That's what my first learning. What I learned is in time and sales that like flow water. If the water flow like red red, red, red, red, red, red I need say oh wow the market go down and f. And then the next step was the red is not red. If the big reds if you see the big red red, red Sales maybe thousand contracts. And so and that is for me if you see red, red, red and thousand contracts. So that's what you see want to see. They know oh it's a big it's somebody's and if you see together the level two and you see that surprises on the bet go down. You know that the seller was extremely aggressive. Aggressive. And that's what my first learning was. And I will see this and I go to my flow manager and trainer and say I don't know what this is but I see that's aggressive. Red red, red. And the bids was go away. That's a market going down as. Yeah. It was your setup trade okay and start to trading. If I see big selling and I see that the bids go away. It was in a go deeper I go short.

So they didn't teach you a strategy. They let you create your own strategy.

Yeah yeah. That's crazy. That's on the what I learned then the second part is to what the chart the second part was I learned the basic of the charts. What is the trend line. What is the horizontal line? Support resistance. What is the trend? That's it. Yeah. More more gives again. Nothing you need to learn on yourself. What I do I am was a. Yeah, I know that's some on the floor is a big floor and you are trainee trainee are on the first line. Then come 100,000 trader and then come 500,000 trader and then come 1,000,000 trader.

As a amount of that you're managing under management.

You scale up to.

Yeah yeah. But you have sitting in the trainee area. Then come 100k area 500k area trader. 1 million per day trader.

That's 1 million daily buying power.

Yeah. You need no daily buying power. That's what's a make a day. Yeah. And if you want to go to the floor sitting floor was a 1 million trader. You can do it because the floor manager come to you and the guy what are you doing here? Go back. It's not your place because you don't you you cannot go to the 1 million trader and ask hey, can you ask me how are you doing? Because if they ask, maybe they sit on the position maybe 300,000 short. And if you ask them and she is not focused, they can. And this five, 10 guys were traded millions per day. They can crash the company. Yes, of course. Because there's a so big size is what's the trade. That's why you not go down. You don't allow you to go to the floor sitting where you not if you're trainee, you sit only on the place where the train is. And so. And. But in the afternoon, if the day is done. So many traders go in the clubs. It was a big club. I don't know his name, I forgot his name and what it was. They drank and every day they drank and yeah, they messed together. So. Because it was so if somebody is big trader, they buy the bottles. Someone is a small trader, they buy honor glazes. If they drink whiskey. And so you know how it's big, how it's not. And I have one trader, I know that they play every time golf. They like golf. I have also they buy magazine. Golf magazine. I don't know what the name is, but this was I one of the biggest in US What I do next day I buy also the magazine. And every day in the kiosk buy the magazine. I also do it by the magazine. Every day I wait for him. If I come, I buy also the magazine. And next or next time I buy the putter golf photo. You know, I cannot play golf, but I get every day in the office. And sometimes they see me that's the things and they ask me, what are you doing? So yeah, I'm here new, I want to learn trading. And so I'm from Switzerland. Oh, Switzerland, Yes. Cool, fine. Yeah, yeah. And we talk together. And so you're playing also golf?

Yeah, yeah, yeah, yeah, sure.

I do nothing in golf, but I can't told him no.

Yeah.

And so. And so. Oh, okay.

And you were still a trainee?

Yeah, yeah, I was trained trainee. And we part months away go. We are still small friends. Yeah. And one day they come to me from the floor to me to the trainee, the floor manager looks so happen. What's the head?

What's the what are you going there?

Yeah, yeah. So come on, come guy, come, come to me, come. Yeah. And situ from where they're sitting. And I say, you can look what I do, but don't ask me anything. You not watch, only watch. And so I thank watching what I do, what shall do. And after the day I have Asked him some questions and so I learned the important stuff all the traders traders what is order flow how to read the order why they look so many on the level two and so and so and they bring me so many stuffs many stuffs more the liking like Skyping stuff Because I was a scalper. I was a big scalping and spread trading as a arbitrage every also to in the stocks and that was so interesting for me. And so I learned all the stuff in stock trading more the pump and dumps because they are also trading like pump and dumps scalping. So it make every day maybe $1.50 $0.75 that's what but that's the size was so big that they're making millions. It's crazy what to do. And so I learned trading after that.

How long did you stay with World.

Trade securities together as a team? I go back it was maybe four years together because in the where in the time where I was learning it was maybe one year and some two, three months maybe but they told us I don't know of. I say this in camera because I need sign it. But the film is gone. Maybe that's not problem. I need to sign that. If I work with a company I don't trade for myself. You don't trade because maybe you have some conflict of interest. Yeah yeah yeah But I didn't. I did because I think and so I'm. I'm. I am the cool guy. I know something and I started trading for me myself and I lose. I crashed. I crashed a lot of money. I crashed rare with so many a lot of money. Then I need to go back work through my company with my company with my friend and because it was very many money it's big money what I lose and then start new small company of traders in Switzerland. Yeah I need I wait some so three months because I was so down because I think I'm a genius. I'm a cool trader of the world. I have learned I know everything and I start trading and I lose a lot of money. And that's for me was. Yeah I don't know English Also depressive.

Yeah depression.

Depression and yeah that's and that's for me. I need to make a small break. It was maybe three to six months and after that I learned one guy is an option guy and from Switzerland and they taught me what do you have to train I have stocks scalping so oh it's cool. I have also stocks but based on the strangle straddle strategy strategy buying or selling strangle. Both. Both. I don't know what they have but they get you if you go in the day trading. We can work together because I have made a cool strategy and you can hatch it if you're scared. So okay, let's try and we do it. It's work good. It works really, really good. And so we start with two guys and the end we was five guys. We have training also young people. Young people. And they work too for us. And that's. We create a company. And so we work together and trading the strength strategy. And my part was to hedge it. If come that's not work. If they stay in the range maybe not break out. They. They call me and say hey, you need to hedge. Maybe Skype. And so that was a strategy. But the. The team it was broke. Because the problem is every part of the company if you start if the money come the people change.

Yeah.

Yeah. And all the. Yeah. Youngest people in the team. Yeah. They. They make a lot money for young people. With the start 1920 and made some. Sometimes 20, 25,000 maybe 50,000amonth. That's the mind is going. I don't know what's happened but it's going crazy. I don't know. And some of the guy have fun with the wife of some of the other guy in the team. And that was a big problem. The drama and the comp. And the team broke. It's gone. And that was over. And after that I learned you met with Tom. Yeah, met with Tom looking for the new team. I look search in the German forums and search in German communities. And there were Tom. I don't know that Tom is a man because in the community his name was Annette. It's a German name for the wife Annette. Annette is a female name. And so he was a girl. It's trading. It's cool. Annette. And we were different minds. We talk about the same but we think differently. Yeah. And we have.

And still to this day you think differently also today.

Yeah. Yeah. It didn't change. Yeah. And that's. And so. And we were both friends and sometimes as a colon had to. Yeah. Have a small team. If you want we can work together. And so. And we meet together and so then come on to the team. And the team was then traded traders now. And so starting with the trading. But for the futures how I learned the future trading is also different because the stuff from the futures is the same like as stocks. The order flow parts is the same. Yeah. Marketing mechanics. But you need think something different. And that Was for me easy. I. I have adopted so many and was for me easy. And so I start with trading with the futures because the option guy have a friend and they told me I think I like stocks because I look every in the stocks. I look for my filet for my filet because 6,000 maybe now 7,000 stocks in the market. What you need to scan and you take one or so many the filet of the fish what you want.

So you take the best one.

Yeah the best one. It's like because you need volatility also liquidity. And they told me you. You dump dumps. What is Stupid, stupid, stupid. I have all every day my fillet filled fish because it showed me band German band stocks. I look in the wallet here liquidity liquidity and like whoa. It's a full big market. You can. I can put sometimes 100k in the market. Yeah. Well and so. And so. Yeah. And so changed to the future market. That's why I changed to the future mark because it's more liquid. More liquid and I need to look and rescan every day before I trade. I start to scanning the stocks for the patterns and so and look of the, of the size of the loom size and so and 6,000 stocks. Maybe I need 30, 30 to 40 minutes per day. You need to click. You need go to finviz. Yeah. And put the stocks average trading volume. Yeah volume over 300,000 of the day range trading range are 75 cents. And you need to look a structure and go so tech tick tick tick local structure on the watch list. On the watch list. On the watch list in the future. I open every day and see that's liquidy is there. Its volume is still there. And that's why I love the futures. But today is the future also change. Although the liquidity is gone because all the pit trader they were gone also. But it's like future trading. It's. I love it. I don't know but I love it. Yeah yeah.

And that's how you got into futures trading.

Yeah, that's future treasures. That's cool.

And so you started with order flow from the very beginning and I think that's how like in the professional world that's what's being used. I see a lot of people in the, in the retail trading space nowadays. They mostly use price and indicators and you know the basics.

Yeah.

And what do you think is the the biggest advantages of using order flow instead of just price?

Because you see what's happened in the market now if you. I think so for the day trading is very important to see what's. What's happened now in the market. If some buy aggressive or not support and resistance. Not support and resistance. Because if you the big are the companies of the professional they say there there's in the market no support resistance. Because if someone want to buy big they buy the the spot is happens if there resistances. So that's why if if they're resistant why you why you can see that's at the moment there's strong resistance. Do you know how you can see it? It's. You have know the line. You can.

You know the line.

Draw. Draw the line and think oh that's a resistance. But it's not at the moment you draw the line. It's not only the line resistance. Is there stock resistance. If there's somebody hit it or lifted the order and somebody you see aggressive selling, that's then now you know that is a resistance before. This is not resistance. It's not only the line. That's why you need to learn the order flow stuff because you see what's happened. I think for the long term trading it's not so important. But so many professionals in the past was day traders. It's not so many was swing trader because all the profit in the firm where I start it was. You don't hold the position more than two days. On the third day you need to close position and you start from. From new. You don't. If you hold the position too long, you have a problem. You need all every third day to close and start from new. Yeah.

You were forced to to be a short term trader.

Yeah, because. Yeah, because you need to see what's happens now in the market. Because the market is dynamic. It can change. Yes, I can change it. So if I taught you what do you do in the next 35 minutes you do a podcast with me. Yeah, that's. That's the most biggest opportunity at the moment. What you have what you do. If I ask you what you do in the next 10 days there's a big.

There's a. There can be a variety of different.

Things that can happen. Yeah. Yeah. That's why you need to learn autoflow stuff and that's why you need to understand that's autoflow show you is it real resistance or is it not strong resistance or support resistance that you need to understand how the market was buying. Is it buying strong, Is it buying fast or is it buying slow? Yeah. On this information you can make your decisions decision because if it's go Too fast to your resistance. It's too. It's the highest rate. That's breakthrough. That's breakthrough. If it's gonna too slow the market too slow to your resistance and have no. I don't know what the word is strong base. If it go maybe like if you look on the order flow on the order book and you see that transition goes bit ask and bid. Yes. Make one turn. Yeah. Bid, ask, bid, ask. And you see that's two. Both of them trade big and the market goes up. Yeah. That's its foundation. It's the market goes on the strong foundation. And this is go on the strong foundation. And it's a fast and you have a resistance. I give you to 96%. It's break. That's. That's so information what you. That's what you see in the order flow. You cannot see this on the chart. You can eat on the indicator.

Would you be able to trade with only a chart price chart?

No, it's not possible for me.

Would you be able to trade without that price chart?

Yeah. Just with order flow? Yeah. That is what I start to trading as I start in the future trading with the liquid market. Like or sick market. Big mamas. I still talk to them Big mamas. Sorry for girls or mamas because they are so liquid. So like boom future. It's one of the at the moment not my best market. But I start with the boom future. That was my bread and butter at the market. That's every day.

I start in the morning the opening cash opening make maybe in 10 seconds my money for the day. And that's what I like. Bund future. It's a German market and I start with them maybe in the morning it's a cash open. At the moment it's cash open isn't gone, it's not there. But in the past it was cool strategy. In the morning you see some guys start to buying observed the market on the other on the long side or side side. And pre market. You see that somebody now starting to observed and you go with them and. And the old cash open it's make a fast move. Maybe like 10 to 12 ticks. Seven ticks or more. And if you put the size. Good enough. Good enough. I have sometimes trade. So on the start at the moment I trade note bond. But in the past I trade maybe 100 contracts. 100 contracts per tick was thousand euro. And if it's make 10 ticks in the seconds and the on the cash open, that's 10k.

Yeah, yeah, yeah.

That's it. That was my strategy. That's where I meet the Tom. We have so small. Yeah, this is cool story where I meet the Tom. This was a small community and there was a guy trades for the bank and she's a bun trader, a bond trader. FGBA and I also trade bond and nobody know his name but there was there. And. And every morning I said what do you think? Where's the market going? I. I think I buy long. And so many guys don't know that I can read the order book. Because in the past nobody in Germany had trading on with the order book. It's so many, so few people. That's trade with Zoro. That was so many trades with charters. Okay, okay, okay. And I know that they trade every day to 7 to 10 10k contracts. That's what is a trade. And every day I only look in the book and look of somebody buys 500. 500 contracts per block. So 500, 500, 500. And so see it. I know that's maybe the guy. And you are front running them. Yeah. It's a cool strategy. That's well easy. Easy, easy money. Easy money. Yeah. And so. So how did it.

How did it change? Because through time I think there's a lot more algorithms in the market.

Yes.

HFT firms.

Yeah.

How did you like. Did you see the change in the order book speed in the order book dynamics and how did you adapt to it?

It's easier adapted. It's for me it's not so.

Yeah. I say so many guys was crazy like oh, it's algo makes so many broke. The market was broke. So many strategy was broken. It's for me it's okay, let's go. Let's do it algorithm. Because the algorithm gives you this new market maker. Because all the pitrader they're gone, it's not there. And the liquidity is what's gone. If there are no algorithms in the future market the market don't move. And what somebody change is the speed order flow change.

Speed change. More HFT firms started market making. How did you adapt to that change change?

For me it was easy because I have no problem with the algorithm. Because algorithm are now the new market maker. What the professional do now the algorithm do it automatically and it's no problem. So many strategies not work like a flipping, you know, flipper. Yeah.

Flipping.

Yeah.

When the order where the order book flips.

Yeah. The orders, you know they're in the bids and then. Yes. This was how many years ago it was a one guy his name was Flippa. You know Flipper, Pa Rotter. No, no. Pa Rotter is one of the biggest guy in Germany. Say they move the market, the bull market and they. The flipping strategy is based on his name Flippa. Because there was an inside nickname Flipper because he created this flipping strategy. That's what.

When was this?

Oh that's so many years ago. No. Yeah. Maybe. I don't know. But before my time and that was a big guy. He moved maybe in a day 5 to 600,000 contracts in the bond per day. Crazy there she make maybe like a trader she go to Singapore and make a hedge fund and sell this company. But I know two guys from his team and I think they made over 100 million bond trading. And so. And that's why this I'm flipping because. Because he creates a strategy flipping. That's. Yeah. And the algorithm is now faster than that is a big problem. This. The speed. Yeah, that's the speed was changed. But the strategies also work. You can see it. You can also see the algorithm as they take it somewhere sometimes. What's. I like it. This is crazy. When you see the algorithm go crazy. You can see it in the other book. Some in maze, some often in them. € USD, € Forex. Yeah. Forex futures, huge forex futures. You see so many sometimes maybe two or three times in the year. That's algorithm now go crazy. You see on the bid and ask like that's so freaking free money. You can so many men make money. You see on the bid and ask side that the algorithm buy and sell on the bid inside ask buy and sell. Taking up and down, up and down, up and down, up and down on. It's maybe gonna go five minutes. You need to put all every time sell limit, buy limit sell.

So you're like a market maker.

Yeah. It's called. It's ready. It's go up and down, up and down, up and down, up and down up. Now maybe five minutes and you can put on if you see it. You put every time order on the bit and ask bit and ask a cigar while you. You got it the order and you fill it and get your take profit.

There's a strategy guys.

Yeah. Yeah. That's crazy. This is free money. And that's. Can you. That's what you know why you need to learn order flow. Yeah. Because you see it in the chart. You never see it. That's. That's one algorithm strategy. And see when it go crazy algorithm. I have no problem. The speed test was only changed the Transition was changed. Some strategies not work like a flipping Some strategy are not so good work. Maybe front running. But it's possible that's what's. What's not work. Maybe.

Do you still like spoofing?

Is spoofing you can.

Is it still happening?

It's happening. Yeah. And you can also trading. Even though it's.

Even though it's illegal, is it still happening?

Yeah but for the retail trade it's illegal for the algorithm trading is legal because the problem of the stock of the exchanges is the algorithm confirms or so or a big bank. So hedgehog who trade with is they are so near to the exchange that the exchange not can see that this spoofing because it's so fast they can see it. That's a spoofing is wow. That's why it's not. It's not today happening.

Does it happen in the big markets also like in. Yes.

Yes. It's yes, this has happened. But for the retailer if I spoof I had to do it some. I had some guy I don't know on the YouTube speculator. So it's a OS guy trade futures and she don't believe me that I have. I trade big size. I have. Okay look, go and look SAP. I put some 300k order also. 300 contracts.

Contracts.

Yeah yeah. And you see and I do it. Did it. What what do you think? What do you think what's happened? One minute later they call you the. The broker called me and said dude, what you are doing you you're crazy. You dump or you stupid or whatever. Why you spoof?

Wow. Because they you wanted to show the.

Contract and you deleted the orders. Yeah.

So they thought you were spoofing.

Yeah. And the exchange called the broker and the broker called me. Wow. And they say hey, if you do you. If you done one more we need to close your your trading trading and cancel also my brokerage account. And so.

Wow.

That's yeah. That's why it's for the retail spoofing is not allowed but for the high FD is allowed and you can see it. One of the spoofing strategies I can give you here gift is if you see in the other book. That is so crazy. If you see front run strategy. If you someone spoofed on the bit size that they won't go long with a big size. And every every market maker or algorithm and see that also and put on go front run maybe 1, 2 ticks above the big size. It's not just a book. Just a book. You see the large order on the bit, maybe 10 price. 10. Yeah, 1k contracts on the buy side. And some algos put one to ticks above the sides and start to buying and front running. And front running. But if you see that the front running they start buying and it's go move up. But on the move up you see that's observed on the ask side. Some, some guy, you know, oh, it's maybe spoofing because she needs liquidity. That is what the liquidity is. And that ICT is something liquidity, fair value gap or so. No, liquidity is, you see only in the book. And that's. They need liquidity, they need size that I need to sell. Because if there's some big guy.

Yeah.

They can't sell on the market because they move the market down and they average price was.

They lose money and they start observing, observing the price, the prices. And you see the move up and you see on the ask side somewhere someone observed 200, 300. And you see if, if the moves up now go slower and not so large. It's a small up moves.

Yeah.

And you see that's a smaller, smaller, smaller. And it comes to nerve here, the big size. And you see they got, they go, yeah, it's done.

They delete the, delete it all.

What do you think what's happened with the undergrad?

It's gonna fall now. Yeah, everyone's gonna sell.

Yeah. And everyone is gonna sell. And that's why the move, the moves, that is what, what liquidity is. They need to close their positions.

Yeah, yeah, yeah.

And the guy who observes the positions, they give the size to close their positions lower. Yeah, that's all the market, you can see it, you can see it. All the spoofing stuff is if you know how to read, how to trade, it's possible. That's, that's why it's so important to understand what's happening in market.

Yeah, definitely.

That's this. If you know how the market work, it's like drive a car, you know, like drive a car. If you see on the German autobahn, you know German autobahn, you have no speed limit and you see the street is three. What you're doing, you give gas also. Yeah, yeah, yeah, you get gas, you drive 200, 300 kilometers per hour. And if you see that's the, on the front, the too many cars stop it. It's stuck, it's stuck. What you do, you stop, you go from the gas down. And that's so also in the market, if the market's free, you see that the market moves fast up and they slow down. You see that the market stocks start maybe absorption someone is say distribution or so stuff what you see and that's real life. That's also life. You can do it like in real life or on the bazaar. If you are in Turkish bazaar. Maybe you see the guys who is one of the loud. Loudest.

I have a question for you that. You know, I've been talking about this a lot on social medias and there's a big controversy about it. So my thesis, my idea is that since most traders in the YouTube space trade forex and CFDs and prop firms which are demo accounts mostly their stop losses are not hunted by anyone.

No.

Do you agree with no statement?

No, that's. That's too many. Nobody know where the stops is where the liquidity is. Nobody know in the retail market Sso too many gurus. And so learn to. To put your stop under the low or above the high.

Yeah.

The market know that maybe that was stops but it's not interested for the retailer stops. That's what does the retail stop. Maybe 100, 100 contracts or so. Yeah, but if the hedge fund need to set 10,000, 100,000 contracts that they need to fill his order. Fill his order. Maybe one week they don't need to look at see. Oh well, we need liquidity. We go and look what's happened in the one minute chart. What's happened in the 50 minute chart. What's happening in the 30 minute chart? Not important. That's nobody hunting. Some. Some.

But there's still some fights. Yes, some fights are happening.

Yes.

What is the real fights that are happening?

Real fight is happening because somebody between who you know, between who is. I don't know, it's hard to say because you need to see it. If you don't see it, that's a fight. That was liquidity hunting or something. As some algos also gives algos. They are doing hunting liquidity hunting. They're searching for liquidity. But the search for the big money, the searching for the other algorithm, that's like a scanner. They put some orders in the market to see what's happened. What's happened maybe on the weekly high or daily high, but not on the one minute chart high. That's not important. It's guaranteed. That's. It's to say that the mild. It's a big guys want hunting the liquidity stops. Sorry, Hunting stop. No, that's a. That's not important.

I think it's a misconception but still it's still weekly highs and weekly and daily lows.

Yeah, yeah. It's important there's money going on because what's happened on the weekly high or a daily high. There's are so many traders going. There's so many traders going like maybe scalper momentum trading. There's break momentum like trend follower goes in like position traders go in and that's what create liquidity. And that's it's what and what's happened now then they start maybe one big company start liquidity hunting because. Because they see that so many go long and they flip the market now because they know that maybe 10,000 contracts was long and they know and they see that nobody won't go long because all the people are long. They see that the market not more more move more along because they know it's all the people long and you need to learn. And the market was min distance. I don't know. It's max and minimum. Minimum was two big big traders. One is selling, one is buying. And if someone guy who think hey the price is good for me to sell. They know that nobody was buying. They know that all the people are long. Yeah. And then they start to maybe hunting the liquidity. Well then they push the market down because they know if we push the market a little bit down the guys have problems. They need also cover your position longs.

And they will sell.

Yeah. And they'll sell. And that's what liquidity hunting is. But not they put the stops above a low and so on this. No. If the too many and too many traders on the location start trading that's great liquidity. Yeah. And that's then high tech liquidity. But not maybe they had put the stops and so 20 contracts. Some but sometimes you see on the high it's what traded five contracts. Yes. What is the liquidity? Is this liquidity?

Yeah.

Yeah. This is bullshit. This is nothing.

Definitely.

No, that's not. Yeah.

I think this is the stuff you can only see with audio. You can't.

Yeah. You can't see it with the price, the price. You can see it with no visual price knowledge price give you confirmation like what's happened in the past. What's. How's the structure? CEO maybe higher lows, higher highs. CEO, some guys want too long. What Maybe you see also on the bar. Is the bar small or large bars? Yeah. And if you have so maybe large bars with like confirmed with the volume profile on the bar. Maybe it's strong buying and selling. You can if you had some so idea what you see. And that's. You need to confirm with the. What you see now. Yeah. And now it's only make to see. See it above order floor. That's how you. And that's the.

That's the point about this liquidity hunting stuff because when. When price goes above a high.

Yeah.

What are the options like.

Yeah.

What can happen.

Yeah.

On a volume side.

Yeah.

And how do you trade or what do you think? If you see for example high volume or low volume.

Yes.

What do you. How do you.

If. If I want to go long, maybe I want to go on the high. I want to make breakout. Breakout. What I need to see. Like I told you German Autobahn it's free, you give gas, you need power, you move. That's the same stuff in the market. If somebody want to go if someone you want to go long, you need to see in the book like aggressive trading like bid and ask need confirm that that's where that is what volume creates as a volume. It's. If the market go up and you see the transaction tradition between bid and ask they accept the higher prices because there's interesting. And if the. The speed is crazy go up crazy go up bit ask. Bit ask with the size, you know that's maybe it's 96% that we have move up. Yeah. How far or how long it's go? I don't know. I don't know.

It's scalp.

Yeah. But it's maybe it's can also also give a trend for the day. I don't know. But it's a possible to 60 now 60, 96 or more that's happened. If. If you see that the market go slow to the high and no transaction gives and it's break out. What will do? What do I do?

Yeah, it's likely going to reverse.

Yeah, I guess. Yeah, yeah. The change is so more the change that's a reverse. That's go higher. That's what you need to see. If this break out without the volume, without the speed the change is high, that's reverse. If it's break out, there's no interest. Yeah, let's break out. And you see volume and size and speed. The change is a height that's go up. That's how you treat it. And that's stuff you need to see and need to learn. That's it's possible also with the footprint. But in the footprint is what you don't see is the speed. The speed is not so clear like in order book. Yeah, yeah, yeah, yeah, yeah. If you want to trade like sculpting, you'll need only the order book. You cannot sculpt with the order book. Nasdaq as in market, you can read with the only with the order book. But the fake market like bond S and P stocks, you need a chart for the trading, for Skype, for day trading also you need it. You can do it without the chart because you see all the stuff. What you need, price, time, volume, speed. That's the structure of the market. This is a. That's the essence of the market. Essence? Yeah, yeah, yeah. This is really essence of the market.

If, if someone is starting from zero with trading, which a lot of my viewers are and they don't know what to do or what do you suggest is the best approach to take into the market? Is it with a little bit of backtesting or is it like right away into the markets and learning back testing?

I think backtest bring nothing because the market changes every time. What worked five years ago, it's not working. That's dynamic. The market's so dynamic.

I don't like backtesting. If you want to start with the trading, you need to understand what is the sense of the market. And you need to understand, okay, it's volume, price, speed, how it work. What is volume? Why so important volume? Why is the speed important? That's the stuff. What you need to learn. And if you want to learn really, really learn trading, you need to make so many trades. Is it possible because you learn from the mistakes? If you make maybe in the month 1000 trades, you learn more than if you want to go long term, maybe you make in the year three, five trades, as I heard so many in the communities. Yeah, I'm a trader. What you're trading, swing trading. How many years? Seven years. Seven years. Oh, seven years. Okay. How many transactions do you make in the year tree and what the. You're not a trader. So you may, you may know nothing about the market. That's is. This is not for me, it's so important. That's how I start is with scalping. Scalping is so the best way to start. It's not the easiest way, but you learn so many stuff over the market.

If you, you learn faster.

Yeah, you learn faster. And you learn so many stuffs. If you look at the book, time and sales and so what's going on in the book? Book on time and sell, how the market moves, why the market moves. And so is this is a foundation in the move or not? It's like building in the houses. If you need a house, strong house. What you need strong foundation.

Yes.

If you bow. Let's see. On the not so strongest foundation, you put the house as some. What is earthquake? Earthquake. Boom. It's thought that's the same as the market. It's a not struck foundation. On the move. On the upside move. It's for fast down. That's why you. I might. This thing is so it's best way to learn with Skyping. Maybe sometimes it's not sometimes saying you need to go higher level and go down. No, my design is all it's you need to do with the Skype. You need to go to the essence of the market and then start. It's not the easiest way, but if you do the way the hardest way then you have. It was in the future. It was all the stuff. What you see on the chart, you see on the. I don't know indicators, footprint, market. It's easiest for you but you know how it's work and why it's work.

Yeah.

Because you understand what's behind the hair. Behind there. Yeah.

Behind the scenes.

Yeah, that's the way.

How do you manage? Because also this is another big problem with nowadays traders. They are very emotional and all the emotional side of traders trading is. Is one of the big struggles of traders. Aside from finding an edge. How did you manage it? Like how was your journey like psychological journey into trading. And did you. What were your biggest problems?

Let's. Let's freeze emotions. If I. If I am my emotions, I'm angry, I break. Or sometimes also my. I don't know, I break it. It's okay, I'm emotion. I have to film break it. For me it's emotion. So not the problem. I give this emotion change. One of the biggest problem for me is my ego. You know ego? Yeah, that's as well. If I want to have right, I want to fight against the market. That's for me the big problem because the emotions is if I angry, it's the table. And so it's for me I give it three. Because you. You need give this chance free. Because if you put it in the EU it's not good. Give the emotions. Leave them, leave them. But what the biggest problem is it's the ego of the person. Because if I trade against the market, I want to have the right. I see an ad move. It need to go long. It need to go long. That is the biggest problem for me. For the motion it's not the problem. Because on the beginner side maybe it's a problem because. Because they begin well how they start the beginner. They start with like YouTube channel or in some on the Internet strategy, learn and think I'm a genius. I know so many stuff now. I make money and then start to trading. They lose the money. They begin to struggle and say maybe they think they come on the point where this thing. I know that I know nothing.

Yeah.

And then they start learning from the beginning and learning extremely Learn and learn and learn. And then comes a point where they think, oh, I know what I doing. And there starts there no emotions. Because if you know what I doing and you be with the market, you. If you see what you think the emotions on your side. I think those emotions. I don't know how I say it, but emotions is not so for me personally. So for me personally, it's not the problem. The emotion if you know what you're doing. Yeah. Because if you make money, your emotions are clear. If you lose. Yeah. Your emotions now struggling and think, oh, what I doing? This. That's a part of the game. We are not a robot or we are not a trading machine. We are not alone is one of the important part. But if you not know what you're.

Doing, if you know what you're doing, if you build your skill is. Is.

Yeah. Ocean. But. And the first. Yeah. For the beginners is a problem. Yeah. Why? Because they don't know what to do.

Yeah.

And so you think it's just a.

Matter of knowledge and experience and skill.

Yeah, yeah, yeah, definitely. Yeah, definitely. Yeah. That's the same part. If you drive the car, if you sit the first time in the car, what you emotion. You're angry, afraid, give you guys because you don't know what you do.

Yeah.

That's the same part in the trading also. If you know what you do, just.

Trade and trade and trade and trade.

Yeah.

Thank you very much, Serge. It was amazing interview. Really a lot of insights and yeah, I think people will love it.

Thank you very much. Yeah, good.