World Trading Champions Reveal: How to Always Win as a Trader! (3 Mistakes Every Trader Makes)

The three biggest mistakes in volume trading. Forget indicators, that shows you only the past. Today I will explain you a lot of more how to use intelligent stuff for trading where I am. I am Tom Forwald, I am the trainee of Patrick Nell, the two times World cup championship of trading and I do my job for over than 20 years. I think you will learn a lot of intelligent stuff today and feel comfortable to do it. I love it. To explain your other stuff. Thank you very much.

What tools do professional traders actually use to gain an advantage in the markets? Are you aware that volume trading or scanning with indicators often relies heavily on the past and that this basically doesn't help you much, if at all? And if you want to learn and get to know how we do it, how we at trade, the traders analyze the markets for ourselves and what we focus on, then follow me now. It's going to be a very exciting and entertaining lecture for you because I'll explain to you from A to Z how we scan markets and which myths we might need to clear up. What was it like for me in the beginning when I first got into the stock market? Back then I learned a strategy that was based on moving averages. What are moving averages? They're simply moving averages that refer to past days or weeks, depending on which charting timeframe you use. And do they actually provide me with any added value? No, they simply show me whether a market is currently trading above, below or right in the middle compared to the past values of these moving averages. But what advantage does that offer for the future? Well, maybe you can see a little bit like we're not extremely high or we're not extremely low. But one thing I can tell you is that sometimes markets become much more extreme than we can imagine. And if we trade in such a way that we're always looking for counter trades, for example, to return to these moving averages, then that's not effective. And it's precisely these moments that cause many traders to lose all their money because they keep trading against these trends, believing the market has to come back. Now we just recently had a great example of this in copper when we saw a 30% price drop in a very short time. 30% in a futures contract. Now just imagine you were active in this market and you were trading against this trend. Even better intraday with 5, 6 or 7% moves and on top of that, reduce the price. A lot of retail traders do that too. That's not good for you and it will wipe you out. But how can you really read what will actually help you reach your Goals. I can tell you that you have to read the tracks left by the global players. You have to use the tools that these guys adapt and apply for themselves, and then you see if you can follow in their footsteps, because that's really the only thing possible for us. So let's be aware, indicators only reflect past values which are based on price movements that have already happened. But how does that help us? Yes, we can see where markets were higher, lower, or move sideways in the past, but what does that really do for us in terms of the future? We use what's called context. What does context mean? Context means that we look at where the global players are most likely to move the market from and to today or for the coming week. And how is it even possible for us to determine something like that? Yes, we also have to refer to the past, but we read the past in such a way that we look at where the global players have been active and where they haven't. And then we refer to the here and now and observe how they are currently acting. And only if we can derive this combination can we predict with a certain probability which direction a market is heading. And if we then also consider the following in quotation marks, indicators such as the volume profile, for example, or the market profile, and then form combinations from them, we gain an advantage because this allows us to see whether a market is supported by volume. And only then does it make sense to trade in that direction. Just imagine you have a trend structure and some Bollinger bands, one of those typical fancy indicator tools that shows you the market is now moving outside of these Bollinger bands. You have a strategy that says the market always comes back inside these Bollinger bands. But now trading volumes are surging outward, and supply and demand, that's really all that ultimately moves the markets, keeps shifting further and further into the extreme. If that's the case, then there's a strong imbalance among the big players. Let's say it's a commodity future, and some major producer has a hedging problem and needs to start hedging at a certain price. That's how the market really works. In that case, they're forced to keep buying more and more, or, of course, on the other side, keep building up the short positions larger and larger in order to hedge. And if that's the case, then the market certainly won't return to that Bollinger band range quickly and definitely not within the same day. And now there's a jump to the next day, and the Bollinger bands start being drawn somewhere completely different on the chart. Again, does that really help you ask yourself that question? I'm telling you, no, it doesn't help you at all. You keep referring back to past topics, to past indications without understanding how the shift in volume happens in such a way that there's a certain logic behind it. And you need to be able to read whether the global players currently have a reason why a market is falling out of balance. It's the same with breakout trading. Breakout trading only works when a market is out of balance. Many traders look for setups within ranges to trade quick breakouts because they only know the setup. But they haven't understood the preceding context that the market is currently moving sideways and that during this sideways phase you should actually only be doing counter trades because you have to understand the context for value in a sideways market is such that you go short at the top and long at the bottom. And that's it. And everything in between is just noise. Volume traders then say that the market always tends to move back to the vpoc, the volume weighted point of control. But what does this information actually do for you? It does absolutely nothing for you if you can't determine how likely it is that the market will continue to move sideways or where exactly the point is where the market will break out. And now comes the breakout. Now the big question is, is it backed by volume? Does it have a real foundation? And are the market participants after the breakout actually willing to accumulate new volume in a new dimension, meaning on a higher or lower time frame and to process these prices there in a stable way. Only then do you have an advantage. And only then is the probability high that the market will now continue to move in the direction of the trend. And on the second run the probability is even greater that the market will continue to push higher after a small pullback. And you should bring these things together. You should be able to read how the tops or the lows are formed in a trend. Do you have weak highs? Do you have strong highs? Are they backed by volume or not? And that's where most retail traders think the wrong way around. It's super exciting to recognize that. And we gain an advantage from it because we can recognize relatively quickly when a so called fake breakout is happening or when a market is truly establishing a new trend with solid volume and substance. And it's crucial to classify that correctly. And we'd like to raise your awareness so that you're simply able to identify whether the context is sideways or if the context is is truly trending, then we'll take it a step further. And for example, in our team we have different types of traders. I've already talked a lot about trader DNA. There are people who always go against the flow. Yes. In such a trend, they won't trade against the flow anymore because they understand that's not a good idea. And they simply look for another market to analyze for themselves. And that's where they play their game. But the traders who love trend following setups or who love breakouts, they only take those phases where markets are trending. And it's not that easy to pinpoint when a market is really in an overall trend or when within that overarching trend a long value phase suddenly sets in. And what comes after that. You absolutely have to understand these things and listen up. Stop with this indicator nonsense. I can promise you it won't help you. Sometimes you see charts with ichimoku clouds combined with some MACDs, overlaid RSIs and then some Bollinger band on top. It looks like a painting by an artist. And then someone wants to tell me that's how you make money. You can forget about that. If you've ever been in a professional trading house, you will certainly see order books, perhaps a few small charts, just to carefully check if those order books are actually proving useful at that particular moment, whether the traders are trading aggressively or if they are acting somewhat lethargic. But most professional traders, they visualize their charts in their heads. They focus on dynamics. They pay attention to the actual executed orders that are happening right now. They look at what's happening right here, right now. Is the speed high? Or are large players currently absorbing markets with iceberg orders? That's what they look at, not at some Ichimoku clouds. That simply has no place in professional trading. Of course there are phases where things like that work. But I promise you, when the markets become unbalanced and we can't determine whether this imbalance is turning into a real extreme, then you can forget about it. You always have to go back to the simplest model of supply and demand, of balance and imbalance. These are like laws of nature and they also apply to the stock market. And now you have to learn how to read and assess these balances and whether they are still dominant in the direction of the trend or not. And if you manage to do that, then you've won. And if you then go ahead and use smart, intelligent risk management for yourself and don't fall into gambling or the need to be right, then you'll make very smart money with it. Let me summarize that again. Please erase all indicators and just take a chart and draw in ranges and trend phases. And then observe what happens when the market returns to the range phases or goes back into old trend phases. And you'll see. And this is one of the little secrets. It's always the second attempt. That's the exciting one where the breakout happens. Or at least that's usually the case. And if you pay attention to that, you'll realize that sometimes patience is the solution to help classify my trades better. And that's what I wish for you, that you simply don't fall into these traps and spend ages trying to make money with some weird things people give you. You'll just burn it. Stop it, please. To sum up, just look and consider. Is the supply and demand truly fair or are the prices themselves unfair? You can pinpoint this by identifying the real volume flows for yourself by looking at whether the traders are currently big or small. You can see that in the order book and you can also see it afterwards in the footprint chart. And if you just evaluate these topics for yourself and then use a blank chart without all the other information, you'll already have a big advantage. Please take this path for yourself. Use this approach and stop with all these indicators. Then your trading will take a completely different path. And I'm really happy for you if you choose this path. At Trade the traders, we only follow the path of supply and demand. We don't have any other indicators in our templates at all. We look forward to a great collaboration with you.