What is the Professional Trader’s Code? Securities Act of 1933
Securities Exchange Act of 1934
Investment Company Act of 1939
Investment Advisers Act of 1940 (Amended in 1996)
Sarbanes-Oxley Act of 2002
During the trading year of 2008, millions of American households lost over 7 trillion dollars of accumulated wealth! Let’s see what that really looks like as a number; $7,000,000,000,000, that’s a lot of zero’s! If all of these American investors lost this much wealth, where did it go? Who did they lose it to?
These are important questions, and if you are currently trading or investing, or you want to start, you must know how the markets really work and who you are really trading against. It’s a nice thought to believe that the stock market is a level playing field for all participants, but it couldn’t be farther from the reality of the truth. Stock market manipulation has been ongoing since before the Wall Street days of Jesse Livermore and the bucket shops. The markets will always be used to transfer the wealth from the unsuspecting many to the very privileged few (the smart money). The same applies to the commodities and futures markets as well. These covert actions have led to several legal acts instituted by the United States government:
Please Google each of the above acts and learn as much as you can so you truly understand what is going on.
Richard D. Wyckoff wrote several books in the early 1900’s that exposed the activity of what he termed the “composite man” also referred to as smart money.
Richard Ney wrote a series of 3 books in the 1960’s and 1970’s, each exposing the professional trading tactics (price manipulation) of the stock market specialist system. This is the same stock market specialist system that was put in place from the Securities Exchange Act of 1934. This specialist system replaced the bucket shops of the day and they are still in existence today by the mandate of the United States government.
What does all of this background have to do with trading the markets today? I believe that in order for you to successfully compete against the smart money, you need to have a good history lesson to know the true essence of who you are really competing against. These Composite Operators, Specialists, smart money traders or whatever else you care to categorize them as, have been at this game for well over 100 years and they only have one objective: take as much money from the millions of unsuspecting public traders, as often as they can! The government, on the face of it, keeps trying to establish prevention mechanisms yet the smart money always circumvent the obstacles. Think back to the late 1990’s when the investment banks were issuing buy ratings on stocks while they were secretly selling their positions. When they were caught, they were fined a very inadequate amount compared to the money that they bilked from the public!
I know that this message can be hard to believe through your first read, but dismiss it at your own peril. It doesn’t carry weight how much fundamental analysis you perform or how much technical analysis that you do, you will never uncover the true intentions of these smart money players with those outworn tools; and they know it! The millions of retail traders are the easy money to be had, and 7 trillion dollars was dished up in 2008 alone. The media is not reporting that “so and so” made “so and so” billions of dollars in this debacle, they are out there reporting how bad everything is and how much worse it is going to get, making you sell your holdings and driving the prices down farther, which in turn, profits the smart money from their previously established short positions. The same scenario works in the etf, commodities, futures, and FOREX markets as well.
With all of this doom and gloom about the reality of the markets and the traders that we are really competing against, is there any good news in this?
Absolutely, the true equalizer is to learn the smart money’s secrets that they utilize to trap the retail trader into a losing position. As a collective group, individual traders and investors all act in the same basic manner, this is known as the herd mentality. When a stimulus is applied to the herd it will bring a predictable and known response. This is at the core of how the smart money is able to continue fleecing the millions of individual investors, year after year, decade after decade, and century after century!
Richard D. Wyckoff wrote that “the action of stocks reflected the plans and purposes of those who dominated them. I began to see from reading the tape what these master minds were doing”. So, in essence, it is the supply and demand from the smart money’s trading activities that move the markets. Richard Wyckoff knew this about 100 years ago but despite sharing his research with the world, very few people are aware that this continues to happen in all freely traded markets.
In order to be a successful trader, you need to have an edge. There is no greater edge available to the average individual trader or investor than possessing the skill and ability to read stock and commodity charts to reveal which side of the trade the smart money is on. If they are long, we want to be long. If they are short, we want to be short with them. When a trader can position their holdings alongside the smart money, the odds of succeeding increase exponentially!
It is part of the educational process at Traders Code to create these chart reading skills in all of its students. Todd Krueger of Traders Code has invented a new 21st century trading methodology called Wyckoff Candle Volume Analysis (WCVA). This new methodology renders Wyckoff’s pioneering work of 100 years ago out-dated and incomplete. WCVA analyzes the chart using 5 independent variables (open, high, low, closing price and the candle pattern that is created from the price movement) that expose the trading activity and intentions of the smart money. The Wyckoff approach to chart reading uses only the high, low and closing price on a simple bar chart, for a total of 3 independent variables. The addition of 2 independent variables produces staggering results compared to the old Wyckoff method. Reversal patterns are pinpointed with accuracy from the same place that Wyckoff analysis would miss completely! Chart reading and market timing become much more accurate and complete with WCVA.
So the smart money’s controlling interests in the markets are part of what we are talking about with the Traders Code, but there’s more. We not only want to have the ability to read the chart, we also want to be able to pinpoint the price levels where these traders are most likely to trade from. Collectively, the professional’s uses of technical analysis create support and resistance levels on price charts. Traders Code teaches you how to find these levels, and more importantly, how to quantify the strength of these levels so that we can improve market timing, decrease trading risk, increase winning percentage and pinpoint stop-loss placement. It is not enough to know which side of the trade the smart money is trading from because the price movement from a random reversal level may still stop the individual trader or investor out with a trading loss. We must have a more exact price level where we want to initiate our trades from, this prevents over-trading, controls risk and takes away much of the trading stress and tension.
Traders Code offers a complete solution to enable the retail trader to compete against the smart money, and win!