Strategic Risk Approaches in Trading

To master strategic risk approaches in trading, one must possess strong technical analysis skills.

Numerous technical trading strategies exist, but today’s piece focuses

on how to excel in trends and support and resistance zones because that’s how I personally trade.

There are various ways to apply risk management to gain an edge over the market.

What I am about to share works, and these strategies have been thoroughly tested.

Strategic Risk Approaches to Have an Edge

Mastering these three strategic risk approaches in trading will allow you to gain an edge over the market.

Strategic Risk Approaches in Trading

This skill set will enable you to navigate market manipulations effortlessly.

I have previously discussed who is responsible for market manipulations and how to protect yourself as a retail trader.

Today, I will dive deeper into three strategies and provide

a blueprint that you can apply alongside your technical ability.

Take note: if you have good risk management but lack technical skills, your trading business will collapse.

Similarly, if you have strong technical skills but lack risk management, your business will also fail.

Think of trading as a business that you run alone.

To gain an edge over the market, you need to find harmony between your technical skills and strategic risk approaches.

Strategic Risk Approaches in Trading: Using Stop Losses

This approach is crucial because it helps protect your investments.

You should internalize this formula or write it down and place it somewhere visible at your trading station:

Formula: Stop Loss = Edge over the Market

The S=D approach is a recommended starting point, suitable for traders with varying levels of access to capital.

Once your overall strategy is aligned and all components work in harmony, capital investment becomes your next focus.

Remember, we all come from different financial backgrounds,

so use your situation to your advantage.

Do not compare yourself or attempt to fully replicate someone else’s capital investment strategy.

Example 1: Mrs. Daenerys

Mrs. Daenerys saved R10,000 ($546) to invest in the forex market.

After spotting a setup, she quickly entered buy positions.

As prices rose above her entry point, she felt confident and left for work, assuming prices would remain stable.

Strategic Risk Approaches in Trading

Unfortunately, she did not place a stop loss.

Five hours later, during her lunch break, she checked the market and was shocked to see a drastic

price drop, reducing her account from R10,000 to R2,000 ($109).

She closed the trade, wondering what went wrong.

Example 2: Mrs. Reeves

Mrs. Reeves, on the other hand, saved R5,000 ($273) for forex trading.

After identifying an opportunity, she entered buy positions but ensured she placed a stop loss.

Like Mrs. Daenerys, the market dropped drastically, but her stop loss

limited her loss to 5% of her account, amounting to R250 ($14).

The strategic use of stop losses protected Mrs. Reeves from significant losses, ensuring her trading account remained healthy.

Conversely, Mrs. Daenerys’ failure to use a stop loss left her account severely depleted.

Strategic Risk Approaches in Trading: Risk/Reward Ratio

The second approach involves managing your risk/reward ratio. The formula for this is:

Formula: Target – Risk Exposure = Edge over the Market

A balanced risk/reward ratio ensures you win big and lose small, regardless of market conditions.

Strategic Risk Approaches in Trading

By exposing only 1-5% of your account and potentially gaining 10-15%, this approach

allows you to trade with discipline, ensuring long-term survival and profits.

It also helps curb fear and greed by clearly defining acceptable risk and potential gains.

Example 1: Nelson

Nelson reviewed his trading history, wondering why his account remained negative despite winning and losing trades.

Upon analysis, he discovered that his average profit per trade was $14, while his average loss was $30.

This imbalance revealed issues with fear—exiting trades too early in profits—and greed—holding trades too long, leading to losses.

Example 2: Adolph

Adolph’s trading history showed consistent growth.

He realized that, on average, he lost $40 per trade but gained $150 on winning trades.

With eight losses and four wins, he remained profitable due to his disciplined approach to managing risk and reward.

This demonstrates the importance of adhering to a favourable risk/reward ratio, especially

for growing small accounts into significant balances over time.

Strategic Risk Approaches in Trading: Overleveraging

In my previous article, “Protect Your Trades from Manipulations,” I highlighted the dangers of overleveraging.

Overleveraging can lead to significant losses, potentially

wiping out your trading account with a single trade.

However, there is a way to use overleveraging strategically without exposing yourself to excessive risk.

This approach involves amplifying gains while minimizing losses by not funding your entire trading account upfront.

Example: Mpumi_n_co

Mpumi_n_co saved R10,000 ($546) for trading.

Normally, he risks 5% of his capital, or R500 ($27), per trade, aiming for a 15% return (R1,500 or $82).

This time, he employs a strategic overleveraging approach.

overleveraging strategy

Instead of funding the entire R10,000, he funds only R500.

He places more positions than usual and allows the trade to play out.

If he loses, he only loses R500, leaving him with R9,500.

However, when he wins, he gains an average of R2,000 to R3,000.

This strategy enables Mpumi_n_co to amplify gains

while maintaining effective risk management, even without placing an actual stop loss.

However, this method requires mastery of timing market entries and exits before attempting.

Strategic Risk Approaches in Trading: Conclusion

Strategic risk management is essential for trading success.

Using stop losses, maintaining a disciplined risk/reward ratio, and strategically

overleveraging are proven methods to protect and grow your trading account.

Mastering these approaches requires practice, discipline, and a thorough understanding of market behaviour.

By integrating these strategies into your trading routine, you can gain a significant

edge over the market while minimizing risks and maximizing returns.

Protect Your Trades from Manipulations

My goal with today’s piece is to teach you how to protect your trades from manipulations.

To fully master this pure technical skill, one first needs to understand why

market manipulation occurs and who is responsible for its occurrence.

Since I’m a pure technical trader who does not use news or any other form of indicators,

I’ll teach you how traders like me navigate through this deception, which is designed to target retail traders.

Protect Your Trades from Manipulations: Overall Market Direction

On my YouTube channel, I always emphasize the importance of trading with the overall market direction.

Protect Your Trades from Manipulations

The reason why most traders don’t adhere to this principle is their desire to trade every day (a lack of patience).

This is exactly what market manipulators want,

as they use it to take money from retail traders and into the pockets of the elites.

The Oracle of Omaha, Warren Buffett, is often paraphrased as saying, “The stock market is a device for transferring money from the impatient to the patient.”

I uploaded content on my YouTube channel titled How to Triple Your Initial Investment,

where I showcased all the trades I placed throughout 2024, trading only the Nasdaq100 and S&P500.

How I Avoided Unnecessary Manipulation

At the beginning of the year, I identified that the overall market

was in an all-time bullish trend by using the daily timeframe.

The daily timeframe allows me to identify the overall market momentum.

Protect Your Trades from Manipulations

I focused solely on buying opportunities and ignored all selling opportunities throughout the year,

thereby trading with the market’s direction.

Trading against the market is like trying to swim against a strong current.

As I mentioned in my previous piece on how market manipulation targets retail traders,”

manipulators have enough liquidity to move the markets. So why trade against them? Instead, you should trade with them.

Protect Your Trades from Manipulations: News Releases

News releases can be influenced by manipulators to drive activity in the markets.

They know a lot of retail traders will be looking for buying or selling opportunities to capitalize on market spikes or volatility.

How Manipulators Use News Events

News Events

This is when manipulators inject money to trap impatient traders. For example, John Lannister enters a buy order

at the support level because Non-Farm Payrolls (NFP) news has been released, and he sees volatile bullish candlesticks emerging.

Seconds after John and many retail traders enter, market manipulators place large sell orders,

driving the price of the stock/currency down below the support area (creating large bearish candlesticks).

This triggers John’s stop loss, along with many other traders’ stop losses.

With frustration, John tries to capitalize on the selling opportunities

since the market broke support, hoping to recover his lost money (revenge trading).

However, seconds after placing his sell orders, the market shoots back up

because the manipulators close their sell positions, leaving retail traders holding losing trades.

This happens to countless retail traders worldwide, enabling manipulators to make millions at their expense.

Protect Your Trades from Manipulations

I don’t trade news events or get hyped about them;

I trade setups, not hype. If I spot an opportunity during a news release, I let the market wipe out impatient traders.

After the temporary unstable surge in price movements (± an hour),

I then look to enter under stable market conditions. This is one way I avoid market manipulation.

Protect Your Trades from Manipulations: Use High Timeframes

The lower you go down in timeframes; the more manipulations you can expect. Market manipulators target traders

who use lower timeframes (1 min – 30 min) more than those on higher timeframes (1 hr – weekly)

because less liquidity is required to move the markets.

Higher timeframes require significantly more liquidity, making manipulations harder to execute.

Difference Between Low and High Timeframes

It’s important to understand that you cannot avoid manipulation entirely as a retail trader.

However, you can control how much exposure you have to it by choosing your timeframes.

Low Timeframes

 Lower timeframes allow you to open and close trades within minutes or hours.

You don’t need to wait as long as you do with higher timeframes.

The downside is that there is a lot of market “noise” and frequent manipulations.

Fake breakouts at support and resistance areas happen often.

High Timeframes

 Higher timeframes are cleaner and less noisy, allowing you to make clear decisions.

The downside is that they require extreme patience.

When trading on high timeframes, you may find yourself holding positions for hours, days, or even weeks.

Understanding these differences is critical.

By knowing the obstacles you face, you can reinforce your trading psychology and develop better strategies for success.

Protect Your Trades from Manipulations: Overleveraging

Overleveraging can yield great returns, but it can also cause significant losses,

especially when manipulation is involved.

Market manipulation can wipe out your trading capital in seconds

if you don’t use proper risk management, regardless of your account size.

market manipulation

To protect your account from being wiped out,

implement a 1:3 risk-reward ratio: for every 1% risked, aim to make 3%.

This strategy gives you an edge over the market.

Even when manipulation occurs, your losses are minimized.

On days where manipulation doesn’t happen, you stand to make significantly more than what you may have lost.

Protect Your Trades from Manipulations: Conclusion

Protecting your trades from manipulation starts with adopting the right mind-set and strategy.

By trading with the overall market direction, avoiding unnecessary news-driven hype,

using higher timeframes, and implementing sound risk management,

you can minimize the risks posed by market manipulators.

While manipulation may never be fully avoided,

you can control your exposure and navigate the markets with confidence.

Remember, patience, discipline,

and proper strategy are your greatest tools as a trader. Stay focused, trade smart, and always protect your trades.

How Market Manipulation Targets Retail Traders

It is crucial to understand how market manipulation targets retail traders.

As retail traders, we don’t have the capital or resources to influence the price of currencies or stocks in the short or long term.

This lack of influence makes us frequent targets of manipulation,

with institutional players making millions by intentionally manipulating the markets.

As a result, retail traders must adopt strategies to navigate this game effectively.

What is Market Manipulation?

Market manipulation involves the artificial adjustment of currency, stock, or other security prices.

The manipulators, often large institutions or influential individuals, do this at the expense of retail traders.

The purpose may range from controlling consumer spending to making enormous financial gains.

Below, we will examine the individuals or institutions responsible for these tactics and explore their methods.

How Market Manipulation Targets Retail Traders: Hedge Funds

Hedge funds are corporations or private investment partnerships that pool capital from accredited investors and use it to generate profits.

How Market Manipulation Targets Retail Traders

Accredited investors are individuals who meet specific income or net worth requirements,

typically excluding middle- and lower-income individuals.

This regulation exists to protect less-wealthy individuals from the high risks associated with hedge fund investments.

The sole purpose of hedge funds is to maximize profits for their organization and investors,

treating everything else as collateral damage.

Instead of relying on fundamental or technical analysis, hedge funds create opportunities by engineering outcomes in the market.

Fear and Greed

A significant reason why over 90% of retail traders fail is the influence of fear and greed.

Hedge funds understand that human behavior is driven by emotion,

and they exploit this through psychological tactics that bait retail traders into unwise decisions.

 Many of these practices are entirely legal. For instance, hedge funds leverage traders’

fear of losing and their greed-driven FOMO (fear of missing out) to push them into ill-timed trades.

News Manipulation

The manipulation of news is a key tool used by both retail and institutional investors to influence market decisions.

How Market Manipulation Targets Retail Traders

Retail Traders and News Manipulation

Consider this scenario: a trader buys shares in a company called ShapeShifters. After making their purchase,

the trader posts glowing reviews of the company on social media, spreading rumours about its potential to dominate the market.

This kind of manipulation relies on virality, as more people buy shares based on exaggerated claims.

Hedge Funds and Strategic News Manipulation

Hedge funds use a more strategic approach. For instance, if they’ve entered a long position in ShapeShifters at $30/share

and want to exit without causing a massive sell-off, they might fabricate rumours about ground-breaking products or innovations.

By using their connections with major media outlets, they make these rumours appear true,

which retail investors spread further.

As retail traders pile into the stock, its price rises, sometimes to $40/share or more.

During this frenzy, hedge funds silently sell their shares, locking in profits.

When the fabricated rumours lose momentum and institutional players exit,

leaving only the retail traders with buy positions, the stock price collapses,

market manipulations

leaving retail traders with significant losses and hedge funds swimming in millions of profits.

Pump and Dump Schemes

A pump and dump is a securities fraud scheme

involving the artificial inflation of a security’s price using false or exaggerated claims.

Hedge funds employ this tactic to maximize profits with minimal risk.

Here’s how it works:

  1. Hedge funds enter a large buy position to inflate the stock’s price, causing volume indicators to attract retail traders.
  2. Retail traders mistakenly interpret this activity as a signal to buy, pushing the price even higher.
  3. Hedge funds sell their positions near the peak, leaving retail traders to bear the loss as the price plummets yet again making millions in the process.

How Market Manipulation Targets Retail Traders: Central Banks

Central banks also influence markets, often for macroeconomic goals rather than profit.

2008 Financial Crisis

However, their actions still impact retail traders.

Increasing Interest Rates

When central banks raise rates to control inflation, borrowing becomes more expensive

for consumers, small businesses, and corporations.

This decreases market activity, driving stock prices down but strengthening the currency.

Cutting Interest Rates

Conversely, central banks lower interest rates to stimulate borrowing and spending.

This boosts stock market activity but devalues the currency.

Such strategies can indirectly manipulate markets, as seen during the 2008 financial crisis

when central banks injected billions into the economy through quantitative easing.

How Market Manipulation Targets Retail Traders: Market Makers

Market makers, also known as liquidity providers, are essential for market operations,

but they also manipulate prices to profit from retail traders’ losses.

The Spread: Bid and Ask Prices

Market makers profit from the spread—the difference between the highest price a buyer is willing to pay (bid)

and the lowest price a seller will accept (ask).

This explains why trades often start with a small loss immediately after being executed.

Stop-Loss Hunting

Stop-loss hunting, often in the form of bull raiding or bear raiding,

involves placing large buy or sell orders to trigger stop-loss levels.

For example, market makers may push prices

above resistance to bait retail traders into entering buy positions.

Once stop-loss levels are placed just below resistance,

market makers inject large sell positions,

triggering the stop losses and causing further price declines making the markers millions from their short position.

How Market Manipulation Targets Retail Traders

How Market Manipulation Targets Retail Traders: Conclusion

Market manipulation is pervasive, with hedge funds, central banks, and market makers

all playing a role in targeting retail traders. However, with the right strategies and an understanding

of how the game is played, it is possible to join the small percentage of retail traders who achieve long-term success.

The key is staying disciplined, avoiding emotional decision-making,

and adapting to the realities of a market stacked against you.

Aligning Trading Patterns and Principles Explained

I remember two years ago when I was about to apply the concept of aligning trading patterns and principles.

My patterns, key levels, zones, trends, and impulse correction theory did not align at first.

They seemed to tell me different stories. For example, I would analyse a currency pair and spot a W pattern (indicating potential reversals for buying opportunities),

but at the same time, my key levels would signal a different narrative—price at a resistance level (indicating selling opportunities).

Aligning Trading Patterns and Principles

This contradiction left me wondering whether to buy or sell. I didn’t know—I only knew I had to enter the trade (FOMO took over). This lack of alignment led me to lose hundreds of dollars.

What It Takes to Master Alignment

The secret to mastering alignment is you. Unfortunately, that’s why many forex traders, whether they’ve been trading for months, years (unsuccessfully),

or have recently joined the industry, will never become profitable traders. The reason is simple: you are the key.

To effectively use patterns, trends, and key levels, you must master each concept and understand it inside out. Otherwise, you will struggle to align all these principles.

Your inability to stay focused and consistent will lead to failure. You need to have a deep conversation with yourself to assess if the way you are living or trading aligns with these principles.

If it doesn’t, make the necessary changes. As I mentioned earlier, your inability to stay focused and consistent will lead to failure.

Avoid These Behaviours

The reason many traders remain unprofitable, even after years of trading, is a lack of discipline, consistency, and problem-solving skills.

If you don’t learn from your losses or mistakes and keep repeating the same behaviours, you’ll find yourself stuck with a mountain of losses.

Aligning Trading Patterns and Principles

This stagnation prevents growth and evolution as a trader, no matter how long you’ve been in the industry. Don’t let yourself fall into that trap.

A lot of new traders fail because they enter the industry with unrealistic expectations of becoming millionaires within weeks or months.

I’ve been there, too. This mind-set is why many of them quit or never reach the next level.

Aligning Trading Patterns and Principles: How I Did It

As I mentioned, two years ago, I felt conflicted when my market patterns and principles didn’t align.

Instead of blaming my strategy, the market, or the market makers (as I often did back then), I acknowledged the problem and focused on finding solutions.

After months of losses, I went back to the drawing board and began by perfecting trends.

The more I analysed my setups and revisited them later (hours, days, or weeks), the easier it became to spot what I was doing wrong and what I was doing right.

Aligning Trading Patterns and Principles

Over time, this approach helped me understand trends effortlessly.

I applied the same method to patterns and principles, addressing each concept individually.

It wasn’t easy, but consistent practice, detailed note-taking, and determination helped me navigate through the challenges.

Eventually, I saw the light at the end of the tunnel. Always remember: focus on the skill, and the money will come; but focus on the money, and it won’t come as easily.

I made a habit of working diligently every day. I became so committed to perfecting my strategy that I stopped wasting time on distractions like partying.

The less attention I paid to the outside world, the better I became at aligning trading patterns and principles.

Aligning Trading Patterns and Principles: Step-by-Step

The reason I cover every topic individually in the Strategic Trading Academy is so you can thoroughly understand the principles of each concept—such as traditional trends, M&W reversal patterns, and trading psychology.

Once you achieve mastery, here’s your step-by-step guide to achieving total alignment:

Step 1: Trends

By this stage, you should have a clear understanding of how to apply trends. You should know which timeframes to use for analysis.

If you follow my weekly market breakdowns on YouTube, you’ll notice that I start by analysing trends on the daily timeframe.

Placing trends on the daily chart helps me determine if the market momentum is bullish or bearish. I then add trends on lower timeframes (4-hour or 1-hour charts).

Step 2: Key Levels

Next come key levels—critical points in the market where price reversals might occur.

At resistance levels, we look for selling opportunities; at support levels, we look for buying opportunities.

These levels are essential because they define my “playground,” giving me an idea of the potential pips I could gain over different timeframes (hours, days, weeks, or months).

By marking key levels on daily and 4-hour/1-hour charts, I can better predict whether a trend might reverse or break.

When trends and key levels align—for instance, when a bullish market is at a support level—it reinforces my confidence in my analysis.

Step 3: Zones

Zones, like key levels, are areas in the market where price reversals or continuations are likely.

The difference is that zones allow you to account for more price activity, enabling more informed decisions before entering a trade.

I use zones and key levels for different purposes. Key levels define my playground, while zones help me refine trades, scale in entries, or adjust stop-loss levels.

I apply zones on lower timeframes, such as 4-hour or 1-hour charts. Testing these tools extensively will help you understand what works best for your trading style.

For example, I used to create my playground using zones but later realized that it didn’t work for me in the long run.

Step 4: Impulse-Correction Theory

This is likely the easiest step. You need to train your eyes to spot impulsive and corrective price movements.

Consistent practice will sharpen this skill. Once your patterns, market levels, and zones align, allow the correction or pullback to occur.

When it breaks, enter the trade and capitalize on the impulsive price surge—provided it aligns with the previous steps.

Here’s an example of a trade I took on December 12, 2024.

total alignment
This is total alignment all in one picture. As you can see, I used the W pattern along with the inverted head-and-shoulders pattern, which indicates a potential buying opportunity. I also incorporated zones (scaling in a new entry), a support key level, and impulse correction theory before placing my entries.

Aligning Trading Patterns and Principles: Conclusion

This is my blueprint. Use it as a guide to improve your trading skills. Never give up, and always learn from your mistakes—otherwise, you’ll keep repeating them.

You don’t have to follow my strategy exactly. Everyone’s trading experience is different.

If you prefer starting your analysis on a weekly timeframe or exclusively using zones, that’s perfectly fine.

This blueprint is merely a starting point. Over time, as you gain confidence, you can adapt and refine it to suit your style.

2008 Financial Crisis Part 3

In this final part of the 2008 Financial Crisis Part 3 series,

we will explore the greed that fuelled the biggest crash to date and

how it nearly brought down the entire interconnected financial system.

If you haven’t read 2008 Financial Crisis Part 1, CLICK HERE, and for Part 2, CLICK HERE.

2008 Financial Crisis: CSE

As discussed in 2008 Financial Crisis Part 2, the U.S. Securities and Exchange Commission (SEC)

allowed investment banks to set their own leverage ratios under the

Consolidated Supervised Entities (CSE) policy.

To me, it seems the SEC didn’t give this policy any proper thought whatsoever.

This policy granted significant power to five major investment banks.

With this power, greed overtook their judgment.

Without considering the consequences,

 they began taking on so much debt that their reserves couldn’t even come close

to covering their losses if their holdings went sour.

In essence, even a beginner trader can tell there was zero risk management.

The 5 Investment Banks

1. Morgan Stanley 

2. Lehman Brothers 

3. Goldman Sachs 

4. Bear Stearns 

5. Merrill Lynch 

Let’s examine how each of these banks increased

their leverage ratios from the time the policy was issued in 2004 until 2007:

Morgan Stanley

• 2004 Leverage Ratio: 24:1 

• 2007 Leverage Ratio: 33:1 

• Increase: Approximately 38%

Lehman Brothers

• 2004 Leverage Ratio: 23:1 

• 2007 Leverage Ratio: 31:1 

• Increase: Approximately 35%

Goldman Sachs

• 2004 Leverage Ratio: 22:1 

• 2007 Leverage Ratio: 26:1 

• Increase: Approximately 18%

Bear Stearns 

• 2004 Leverage Ratio: 27:1 

• 2007 Leverage Ratio: 33:1 

• Increase: Approximately 22%

2008 Financial Crisis Part 3: How Leverage Ratios Work

To explain how leverage works, let’s use Bear Stearns’ leverage ratio from 2004 as an example.

First, you need to understand that a leverage ratio is the total assets divided by shareholders’ equity.

For Bear Stearns, the 27:1 ratio meant that the firm held $27 in assets (or liabilities, including borrowed funds)

for every $1 of equity. In other words, for every $1 of equity, Bear Stearns borrowed

an additional $26, making up the $27 in total assets.

Here’s a step-by-step example:

• Suppose Bear Stearns had $1 billion in equity. 

• This would translate to $27 billion in assets. 

• If the bank experienced a market loss of just 3.7% of total assets,

it would eliminate its equity reserves completely.

Isn’t that insane?

2008 Financial Crisis Part 3: The Beginning of Horror

In June 2004, the Federal Reserve (the Fed),

influenced by the U.S. government, began increasing interest rates.

Let’s revisit the context: In prior years, interest rates were cut to 1%

to prevent the U.S. economy from falling into a recession following the 9/11 attacks and the dot-com bubble crash.

Fast forward to 2004, and the Fed initiated a tightening cycle, gradually increasing rates.

• June 30, 2004: Rates rose from 1% to 1.25%. 

• September 21, 2004: Rates increased to 1.75%. 

• The hikes continued steadily, and by mid-2006, rates had soared to a whopping 5.25%.

This sharp increase in interest rates set the started one of the most horrific financial crises in modern history.

What Did It Mean to Home Lenders?

Before we address the horror about to unfold, we need to understand this: At the time, banks had issued a lot of loans based on the 1% rates.

Now that rates had jumped to 5.25%, this simply meant that many homeowners were about to default.

2008 financial crisis part 3

(Rising rates + low-income subprime borrowers = disaster.)

For many homeowners with low credit scores,

paying little to nothing in interest suddenly became unsustainable. For example:

• Old payment: $640 

• New payment: $1,100 

Home Prices Falling

Home prices began crashing due to widespread defaults (foreclosures).

In 2007 alone, approximately 1.3 million properties were foreclosed

upon, according to NBC News, further escalating the housing market crash.

2008 Financial Crisis: New Century Bankruptcy

Investors started witnessing the horrors that were about to unfold. In early 2007,

New Century Financial Corporation, one of the largest subprime mortgage lenders in the U.S., filed

for Chapter 11 bankruptcy on March 12, 2007.

This shook the market and contributed to a loss of confidence in the housing sector.

Investors scrambled to sell any investments tied to mortgage loans.

Interconnected Global System

The collapse of New Century Financial Corp

and subprime mortgages spread across the global system.

2008 financial crisis part 3

For example, after New Century Financial Corp filed for bankruptcy,

Northern Rock, a UK bank heavily exposed to the subprime mortgage market,

faced a bank run on September 14, 2007. This was the first bank run in over 100 years in the UK.

The UK government quickly intervened,

bailing out and later nationalizing the bank to prevent further financial distress.

The Madness Continues: Financial Crisis

In March 2008, the horror continued as Bear Stearns became the next casualty.

According to CNN Business, Bear Stearns, the fifth-largest bank in the U.S.,

had a market cap of approximately $15 billion before the crash.

Excessive leverage led to its downfall.

Bear Stearns was acquired by JPMorgan for just $2 per share,

with a $29 billion government bailout to address the liquidity crisis.

2008 financial crisis part 3

2008 Financial Crisis: Lehman Brothers Bankruptcy

According to the Corporate Finance Institute, Lehman Brothers,

the fourth-largest investment bank, had a market cap of $60 billion

 and was heavily invested in mortgage-backed securities and subprime loans.

Facing bankruptcy, Lehman Brothers attempted to raise capital but failed.

 Unlike Bear Stearns, the U.S. government did not bail out Lehman Brothers,

as main street opposed using taxpayer money to rescue Wall Street.

The UK government also blocked Barclays from purchasing Lehman Brothers.

On September 15, 2008, Lehman Brothers filed for bankruptcy.

Investors Lost Everything; Big Banks Made Billions

Banks like Morgan Stanley and Goldman Sachs began betting

against the same mortgage securities they were selling,

making hundreds of millions of dollars while investors lost everything.

2008 Financial Crisis: Recession

During this time of uncertainty, banks stopped lending

to each other due to shaken investor confidence.

This lack of credit led to massive job losses,

With the U.S. economy on the brink of a depression,

recession

hundreds of thousands of jobs were being lost each month.

Small businesses shut down, and over 2.3 million foreclosures occurred in 2008 alone.

The stock market crash wiped out trillions in retirement savings, putting financial strain on the middle class.

AIG Bailout

The U.S. government bailed out American International Group (AIG) because it was deemed “too big to fail.”

AIG’s collapse would have had disastrous to the global economy

consequences for banks and pension funds insured by it.

The bailout totalled approximately $182 billion, according to the U.S. Department of the Treasury..

Public Outrage

The Federal Reserve printed massive amounts of money and flooded the system,

which ultimately had to be repaid through taxes.

Hard-working civilians who had no role in causing the crisis bore the burden,

while big banks grew even richer.

2008 financial crisis part 3

Some argue that allowing these institutions

to collapse would have led to a Great Depression-like scenario,

Others believe the intervention only encouraged corruption and greed.

Quantitative Easing: Q4 2008

In November 2008, the Federal Reserve announced a quantitative easing program to combat the crisis.

They purchased $600 billion in mortgage-backed securities

and government debt to stabilize the housing market.

How Did This Affect Main Street?

The 2008 financial crisis led to massive job cuts and small business closures.

Over 2.3 million foreclosures occurred in 2008,

and the stock market crash wiped out middle-class retirement savings.

2008 Financial Crisis Part 3: Conclusion

The 2008 Financial Crisis demonstrated the devastating consequences of greed,

too much risk-taking, and a lack of effective due diligence .

From the SEC’s misguided policies to large leverage volumes,

these factors created a catastrophe that spread globally.

Millions suffered due to foreclosures,

unemployment, and lost savings.

While the intervention may have stopped the bleeding by preventing

the country from going into a depression,

it also left long-term challenges to address,

the aftermath left many questioning whether the benefits outweighed the costs.

As we close this chapter of financial history, it’s crucial to carry these lessons forward.

 In future articles, I’ll explore ways to hedge

against financial crises and equip you with tools to navigate uncertainty.

Stay tuned to learn how to protect your wealth and prepare

for potential challenges on the horizon.

Mastering Expanding and Contracting Channels: Technical Trading

In today’s piece, we will cover Mastering Expanding and Contracting Channels.

In our previous articles, I’ve discussed mastering the art of successfully trading Head and Shoulders patterns,

M and W patterns, and more for both bullish and bearish markets.

Mastering Expanding and Contracting Channels: Before We Begin

I urge you to read Mastering Technical Analysis: The Power of Price Action. If you’ve already read it, I recommend revisiting it.

Repetition is how we, as humans, are programmed to learn.

The reason I encourage you to read that article is because it covers traditional channels/trends, and this piece serves as an extension to that topic.

What to Expect Going Forward

To best approach this piece (Mastering Expanding and Contracting Channels),

start by reading a section—for example, expanding channels. After reading the entire section on expanding channels,

use the link provided in that section.

The link will direct you to my YouTube channel,

where I’ll demonstrate how to spot and capitalize on these channels. Once you’ve watched the video,

move on to the next section (contracting channels).

By doing so, you’ll effectively combine both theoretical and practical lessons offered in this article.

continuous learning

Take Action as Soon as Possible

After understanding the logistics of expanding and contracting channels,

it’s time to take action. You might wonder: How do I take action?

Start by analyzing charts and training your eyes to spot these patterns.

Through repetition and consistency, you’ll learn to identify these patterns with ease.

Once you spot one, practice taking advantage of these setups using a demo account until you’re comfortable applying them in a live trading environment.

Mastering Expanding and Contracting Channels: Expanding Channel

On my YouTube channel, I always emphasize the importance of having two identical trends

when trading a traditional bullish or bearish trend, like in the example below:

mastering expanding and contraction channels

However, this rule does not apply when trading expanding channels. Here’s an example of how they take form:

mastering expanding and consolidation channels

As you can see, the distance from support to resistance starts narrow but gradually

increases over time as the price moves between support and resistance.

An expanding channel acts as a consolidation pattern, and once it completes,

we typically see a strong impulse move—either to the upside or downside.

This is why I also encourage you to read my previous articles under The Strategic Trading Academy.

Just as a car requires various components to function optimally,

mastering what I teach requires you to study all the pieces I’ve written.

They work together to achieve maximum trading performance.

How to Capitalize Using Expanding Channels

There are two primary ways to capitalize on expanding channels:

  1. Trading Within the Channel
    This is effective when the pattern forms on the 1-hour, 4-hour, or daily timeframe.
  2. Trading the Breakout and Retest
    Wait for the market to break and retest the channel. Once the retest is complete, capitalize on the anticipated impulse move—either for buys or sells, depending on the overall trend.

CLICK HERE to access my YouTube channel, where I provide practical examples.

Mastering Expanding and Contracting Channels: Contracting Channel

A contraction is the exact opposite of an expanding channel. Instead of the price range expanding,

it contracts (narrows) as the price moves between support and resistance.

mastering expanding and contraction channels

A contracting channel differs from a traditional channel or trend.

The trends are not identical but instead form a triangular pattern that slopes to the right.

Once the price contracts to its maximum, we typically

see a breakout—either to the upside (bullish) or downside (bearish).

A contraction acts as a consolidation phase, and once it completes,

we can anticipate a strong bullish or bearish impulse movement.

How to Capitalize Using Contracting Channels

There are two main ways to capitalize on contracting channels:

  1. Trading Within the Channel
    This works when the pattern forms on the 1-hour, 4-hour, or daily timeframe.
  2. Trading the Breakout and Retest
    Wait for the market to break and retest the channel.
  3. After the retest, capitalize on the anticipated impulse move—either for buys or sells, depending on the overall trend.

CLICK HERE to access my YouTube channel, where I offer practical examples.

By understanding and practicing these techniques, you’ll enhance your trading precision

and take your technical analysis skills to the next level. Keep learning and refining your craft!

Mastering Expanding and Contracting Channels: A Key to Precision in Technical Trading

Mastering expanding and contracting channels is not just about spotting patterns—it’s about understanding market behaviour and positioning yourself for precision trades.

These channels provide unique opportunities to identify potential breakouts and capitalize on impulse moves.

By integrating theory with practice—whether trading within the channel or targeting breakouts—you can refine

your technical analysis skills and elevate your trading performance.

The journey to mastery requires consistent practice, repetition, and a commitment to learning.

Take the time to study these patterns, apply them in demo environments,

and gradually transition to live trading with confidence.

Remember, every successful trade begins with a solid understanding of price action and a disciplined approach.

Stay dedicated, keep evolving, and let expanding and contracting channels become a powerful tool in your trading arsenal.

Let’s conquer the markets, one pattern at a time!

The Fall of Zimbabwe’s Currency: How Inflation Took Over Part 2

Before the fall of Zimbabwe’s currency, it is important to note that after Robert Mugabe became

Prime Minister of the new Zimbabwe—where black oppression was no longer,

and black people were able to vote for the first time

(January 14, 1980)—Zimbabwe was shaping up to become one of the top players in Africa.

Before continuing, I urge you to read The Fall of Zimbabwe’s Currency: Part 1

for a better understanding of the context.

Robert Mugabe’s Plan for Zimbabwe

At this time, Zimbabwe was thriving in mining, agriculture, and manufacturing.

Mugabe’s influence also led to an education boom (over 200%), with Zimbabwe’s education system

being recognized as one of the best in Africa—just four years after the

first black elections. Over 12 years, Zimbabwe built more than 500 healthcare centers,

making medical services accessible to all.

As we can see, Zimbabwe was off to a very promising future.

Both the majority black population and the minority white farmers,

who were highly experienced, played a significant role in driving

the booming agriculture that Zimbabwe enjoyed.

The Fall of Zimbabwe’s Currency: The Beginning Stage

Beneath this solid start, Robert Mugabe was also orchestrating a

sinister plan to ensure he stayed in power for an extended period by

eliminating competition from rival parties. The question now is: how did he plan to achieve this?

The Formation of the Gukurahundi

The term Gukurahundi has profound cultural significance in Zimbabwe.

It originates from the Shona language,

translating to “the early rain that washes away the chaff.”

Between 1983 and 1987, Zimbabwe experienced a series of violent internal

conflicts led by the ruling ZANU party under Robert Mugabe.

In 1981, Mugabe enlisted North Korean instructors to train his loyal,

pro-assembled soldiers, known as the Gukurahundi (the Fifth Brigade).

Zimbabwe War

Mugabe used the Gukurahundi like chess pieces to eliminate or weaken his competitors,

mainly the ZAPU party led by Joshua Nkomo.

This military operation targeted members of the Ndebele ethnic group.

The Fall of Zimbabwe’s Currency: Damage by the Fifth Brigade

The scars left by this military operation have become a historic moment that Zimbabweans will never forget.

The operation resulted in numerous human rights violations, including mass killings, rape, torture,

Zimbabwe's currency

and the destruction of villages. It is estimated that between 10,000 and 20,000 people were killed,

though the true figure may be higher due to a lack of detailed investigations.

One-Party State: Mugabe’s Power

After the destruction caused by the Gukurahundi,

the weakened ZAPU party left Joshua Nkomo with no option but to sign the Unity Accord in 1987.

This legislation merged ZAPU into ZANU,

enabling Robert Mugabe to eliminate political competition and establish a one-party state.

With control over the constitution, Mugabe became executive president and used propaganda

to control media outlets, silencing what remained of his opposition.

These actions ensured Mugabe’s authoritarian rule and extinguished any hope for democracy.

The Fall of Zimbabwe’s Currency: Economic Policies

Next, Mugabe influenced economic policies that made it difficult for entrepreneurs to fire employees,

discouraging hiring due to fears of being unable to terminate unproductive staff.

Mugabe then made a destructive move by flooding Zimbabwe’s

economy with its own fiat currency (currency not backed by precious metals like gold).

This excessive money printing was intended to buy support from the people by funding education,

The Fall of Zimbabwe's Currency

healthcare, and sizable monthly payouts for veterans.

However, this increased the government payroll by an estimated 60%.

Lesson: Money Printed Is Money That Needs to Be Paid Back

When a central bank prints money for education, healthcare, and other expenses,

the government must repay it, often through increased taxes.

Unlike infrastructure or industry investments,

these expenses do not generate returns, increasing government debt.

Crumble of Zimbabwe’s Breadbasket

By 1989, excessive government spending accounted for half of Zimbabwe’s GDP.

State-owned enterprises failed to meet investment demands,

unemployment surged to 26%, and international lenders pressured Zimbabwe to reduce spending.

The IMF implemented a structural adjustment program (SAP) to stabilize the economy by reducing government spending,

easing import controls, and attracting foreign investment.

While it brought some stability, it also led to unemployment

and a decline in public services, plunging Zimbabwe into a steep recession.

Default on Repayments

After the World Bank refused to grant a $100 million stimulus,

Mugabe halted debt repayments. Foreign investors lost confidence,

and the Zimbabwean dollar lost over 70% of its value in a single day.

Land Reform Act: Redistributing Land

In 1999, Mugabe introduced the Fast Track Land Reform program,

seizing white-owned land and redistributing it to black Zimbabweans.

However, much of the land went to ZANU elites, and its productivity plummeted.

More Money Printing and Hyperinflation

To suppress protests, the government printed more money,

leading to inflation surpassing 100%.

By 2008, inflation was estimated at 89.7 sextillion percent,

End of the Zimbabwean dollar

rendering savings worthless and public services non-functional.

The Fall of Zimbabwe’s Currency: Conclusion

Zimbabwe’s economic downfall, once promising under Robert Mugabe’s early leadership,

was driven by poor governance, corruption, and catastrophic policy decisions.

Excessive spending, rampant money printing, and land reforms destroyed agriculture,

fueled unemployment, and triggered hyperinflation.

Mismanagement of international loans and neglect of economic fundamentals

devastated the currency and economy, plunging millions into poverty.

This tragic story serves as a powerful reminder of the

consequences of unchecked power and economic mismanagement.

The Fall of Zimbabwe’s Currency: How Inflation Took Over Part 1

The fall of Zimbabwe’s currency is the result of mismanagement of state resources by a corrupt and dysfunctional government.

The Fall of Zimbabwe’s Currency

This led to massive repercussions for the once-great nation of Zimbabwe and its people.

But before we discuss the situation and how Zimbabwe suffered a 94% unemployment rate,

let us first journey back to the country’s prosperous past, before chaos ravaged it.

Before the Fall of Zimbabwe’s Currency: Importance of History

Ladies and gentlemen, before we dive into the details, I urge you to read Inflation Part 1 and Inflation Part 2 if you have not done so already.

These articles provide a solid understanding of inflation, how it can escalate into hyperinflation,

and how it has existed long before paper currency (fiat currency) became widespread.

Inflation is not a new phenomenon. To grasp its significance, we must study the past to better understand present and future economic challenges.

History of Zimbabwe: Before the Fall of Its Currency

Let us journey back to 1865, when two Dutch settlers purchased farmland containing a 215-meter-deep trench/excavation

The Fall of Zimbabwe’s Currency

in the area now known as South Africa. This hand-dug trench, located in Kimberley,

in the Northern Cape Province, is famously known as The Big Hole. Today, it is a popular tourist attraction.

After purchasing this farmland, the Dutch settlers benefited from a booming diamond market.

By 1888, The Big Hole had become the world’s richest diamond mine, then under the control of Cecil Rhodes, a British-born mining magnate.

The British South Africa Company (1889): Before the Fall of Zimbabwe’s Currency

Cecil Rhodes sought even greater power, dissatisfied with merely holding a diamond monopoly in South Africa.

In 1889, he founded a new enterprise, the British South Africa Company (BSAC).

This company was equipped with a royal charter from the British Crown. A royal charter is a formal document issued by a monarch,

granting specific rights, powers, or privileges to an individual or company.

The Fall of Zimbabwe’s Currency

With this authority, the BSAC invaded Mashonaland (inhabited by the Shona people)

and successfully conquered the Ndebele Kingdom using the newly invented Maxim gun,

a weapon that proved devastatingly effective.

The newly acquired land was named Rhodesia in honour of Cecil Rhodes.

Southern Rhodesia, as it was later called, is the region now known as Zimbabwe.

What Happened to Native Africans?

The native Africans who had occupied the land before the invasion were forcibly relocated to reserves.

The Fall of Zimbabwe’s Currency

There, they faced heavy taxation, forced labour, and political exclusion. It is crucial to note that,

while the land was under British governance,

it was owned and controlled by the British South Africa Company.

The company’s sole vision was to exploit the land’s rich resources.

The Company’s New Goal

The region was abundant in gold, coal, chrome,

and other resources. However, these resources were scattered,

making large-scale operations difficult.

To address this, the company shifted its strategy.

Instead of directly profiting from the resources, it sought to promote European migration.

The company encouraged white settlers to exploit the resources,

offering mining rights, military protection,

and prime land to these settlers, privileges that were not extended to the native Africans.

In return, the settlers would pay taxes,

boosting economic growth and funding projects like railway construction.

A Booming Farming Industry

During this period, farmers benefited the most.

They cultivated corn, wheat, tobacco, and cotton on some of Africa’s most fertile lands.

The Fall of Zimbabwe’s Currency

These crops sustained the growing population and generated immense wealth.

By 1923, Southern Rhodesia achieved a semi-autonomous status,

allowing partial self-governance

in specific areas while remaining under British authority.

However, this prosperity was highly unequal—2% of the white population controlled 70% of the land.

Break Away from the British Empire: 1965

In 1965, Southern Rhodesia, led by Prime Minister Ian Smith, became

the first and only white colonial government to break away from the British Empire.

This was a desperate move to retain their political power and dominance in the region,

especially as European colonial powers had begun collapsing due to

the rise of independence movements across Africa.

Political Sanctions

When Southern Rhodesia declared independence from the British Empire,

several international governments took notice.

This prompted Britain to protest to the United Nations,

which led to the imposition of political sanctions on Southern Rhodesia.

Despite these sanctions, the country engaged in clandestine trade with nations like South Africa,

ensuring economic stability for its commerce.

The Bush War

Despite the growing international tension,

the government managed to maintain a healthy economy.

However, unrest among black Africans led to a 15-year conflict known as the Bush War.

bush war

This struggle resulted in the emergence of two anti-government parties:

The Zimbabwe African National Union (ZANU) and the Zimbabwe African People’s Union (ZAPU).

ZANU, led by Robert Mugabe with support from North Korea and China, and ZAPU,

led by Joshua Nkomo with Soviet Union backing,

mounted significant resistance against the ruling white minority.

With no support from the British Empire,

Southern Rhodesia found itself isolated and outnumbered. Ultimately,

the government was forced to negotiate peace,

which marked the end of white minority rule.

New Zimbabwe: The First Election Before the Currency Collapse

On January 14, 1980, Zimbabwe experienced a historic shift as black

citizens were allowed to vote alongside white citizens.

vote

This pivotal moment led to Robert Mugabe,

leader of the ZANU party, becoming the first black Prime Minister of Zimbabwe.

This symbolized a new era for the nation, with international sanctions being lifted.

However, unbeknownst to the population,

Zimbabwe was on the brink of economic turmoil,

as inflation would soon lead to the collapse of its currency.

Zimbabwe’s Next Mission: Thriving Before the Fall

At this time, Zimbabwe thrived in industries such as mining, agriculture, and infrastructure.

Robert Mugabe sought to harness the country’s potential to create a

peaceful and harmonious society for the Zimbabwean people.

However, these aspirations were soon overshadowed by the economic challenges that lay ahead.

The Fall of Zimbabwe’s Currency: How Inflation Took Over

 The story of Zimbabwe’s rise to prominence,

from its rich history of resources to its fight for independence,

paints a picture of hope and resilience.

But beneath this surface lies a tale of missteps, corruption,

and economic mismanagement that set the stage for one of the most devastating financial collapses in modern history.

What happened after Zimbabwe’s initial prosperity? How did a thriving nation fall into the grips of hyperinflation,

economic ruin, and a 94% unemployment rate? In Part 2, we’ll uncover the critical decisions and events that led to the collapse of Zimbabwe’s currency—and the lessons it holds for the world today.

Stay tuned—you won’t want to miss what’s next!

Master the Head and Shoulders Pattern: Unlock the Secrets.

Welcome back to the Strategic Trading Academy! In today’s lesson, we’ll focus on how to master the head and shoulders pattern. Previously, we covered trading the M and W patterns.

Why It Is Important to Understand the Basics of Patterns

Understanding the basics of patterns is crucial because it lays the foundation for successfully trading our strategies.

Inverted Head and Shoulders

To master the head and shoulders pattern, we must first recognize its appearance

on both support and resistance levels, acting as a reversal pattern.

An inverted head and shoulders pattern appears at a support trend, key level, or zone.

If this pattern appears elsewhere, it could be a trap set by market makers.

Master the Head and Shoulder Pattern

As I often emphasize on my YouTube channel, our Funds and Galore community focuses on high-probability setups

to gain an edge over the market and maintain consistency and profitability in the long run.

How to Capitalize on an Inverted Head and Shoulders Pattern:

To capitalize on an inverted head and shoulders pattern,

patience is vital. Allow the pattern to form in the support area. The sequence is as follows:

  1. The market drops to the support area, forming the left shoulder.
  2. Prices drop slightly lower, creating the head.
  3. The right shoulder forms at the same level as the left shoulder.
How to Master head and shoulder

This confirmation indicates that the market has created our bullish

inverted head and shoulders pattern, signalling high-probability buying opportunities.

To master this pattern, it is essential to backtest and understand these setups thoroughly,

ensuring you can capitalize on these high-probability opportunities.

How Do You Know When to Enter an Inverted Head and Shoulders Pattern?

A practical lesson will be available; to access it,

all you need to do is click the link provided in this blog post.

The question now is; how do we know when to place our entries?

The best way to approach this is by placing your entries after the break and retest

from the neckline of the head and shoulders pattern.

After this confirmation, you can place your buy entries until the end of the pattern (take profit),

and you can also place your stop loss just below the neckline.

How to Master Head and shoulder pattern

This will ensure you have an edge over the market by risking less than what you potentially stand to make. Click here to access the practical lesson.

Master the Head and Shoulders Pattern on the Resistance Area: Head and Shoulders Pattern

To master a resistant head and shoulders pattern, one should be aware that these setups

should only be traded on a resistance trend, key level, or zone.

If this pattern appears elsewhere, it could be a trap set by market makers.

As I often emphasize on my YouTube channel, our Funds and Galore community focuses on high-probability

setups to gain an edge over the market and maintain consistency and profitability in the long run.

How to Capitalize on a Head and Shoulders Pattern (Resistance Area): Unlock the Secrets to Profitable Trading!

To capitalize on a head and shoulders pattern that appears in the resistance area,

as I previously said, patience is vital.

Allow the pattern to form in the resistance area. The sequence is as follows:

  1. The market pushes up to the resistance area, forming the left shoulder.
  2. Prices then push further up above our left shoulder, creating the head.
  3. The right shoulder forms at the same level as the left shoulder.
Master head and shoulder pattern

This confirmation indicates that the market has created our bearish

head and shoulders pattern, signalling high-probability selling opportunities.

To master this pattern, it is essential to backtest and understand these setups thoroughly,

ensuring you can capitalize on these high-probability opportunities.

How Do You Know When to Enter a Head and Shoulders Pattern?

A practical lesson will be available; to access it, all you need to do is click the link provided in this blog post.

The question now is; how do we know when to place our entries?

The best way to approach this is by placing your entries after the break and retest

from the neckline of the head and shoulders pattern.

After this confirmation, you can place your sell entries until the end of the pattern (take profit),

and you can also place your stop loss just above the neckline.

Master the head and shoulder description

This will ensure you have an edge over the market by risking less than what you potentially stand to make. Click here to access the practical lesson.

Conclusion: Master the Head and Shoulders Pattern: Unlock the Secrets to Profitable Trading!

In conclusion, mastering the head and shoulders pattern is essential for profitable trading.

Understanding the basics of patterns provides the foundation for successful strategies.

Recognizing the head and shoulders pattern on support and resistance levels

helps identify high-probability setups. For an inverted head and shoulders pattern at support,

wait for the market to form the left shoulder, head, and right shoulder, signalling a buying opportunity.

Conversely, at resistance, a head and shoulders pattern signals a selling opportunity.

Patience and thorough backtesting are crucial for capitalizing on these patterns.

To know when to enter, look for a break and retest from the neckline, ensuring you risk less than your potential profit.

For practical lessons, follow the links provided in the blog post. Happy trading!

Secret of Success: Mastering M’s/W’s

Secret of Success: Mastering M’s/W’s

Welcome to the Advanced Trading Academy, where we will be exploring the secret of success in trading.

Our first lesson will primarily focus on patterns that the market tends to repeat over and over again.

secret of success

It is important for you to click the links provided in the upcoming headings because they will lead you straight to the practical lessons.


Always take notes to ensure you don’t forget any valuable information,

as this can be the difference between winning and losing in the long term.

Mastering M’s and W’s Patterns

The first rule for successfully trading M’s and W’s patterns is to understand

that these patterns occur at support and resistance areas.


As we always say, look for buying opportunities at the support areas and look for selling opportunities at the resistance areas,

as covered in the basic strategy of our academy.

Secret of Success: Mastering M Pattern

M patterns always occur at the resistance area, whether in a bullish trend,

bearish trend, or consolidation trend—the rule remains the same.

Secret of success


If you spot one anywhere else, you should not trade it,

as it could mean that market makers are trying to trap you.

By knowing this secret of success, you are already ahead of many traders

who have been attempting to trade this pattern but consistently fail to get it right.

Decoding the Secret: Importance of M’s

Understanding the importance of M patterns is crucial.

M patterns strengthen the continuation of a trend.

Trends that don’t experience reversal patterns like M’s at the resistance lack merit.

If you spot a trend without reversal patterns like M’s,

entering at the resistance means our trades won’t have high probability.

At Funds and Galore, we encourage our students to only place entries with high-probability setups.

Secret of Success: Mastering W Pattern

W patterns always occur at the support area, whether in a bullish trend,

bearish trend, or consolidation trend—the rule remains the same.

If you spot one anywhere else, you should not trade it,

as it could mean that market makers are trying to trap you.

Knowing this secret of success puts you ahead of many traders who consistently fail to get it right.

Watch how we successfully trade these patterns in the practical course, which will be presented to you shortly.

Decoding the Secret: Importance of W’s

Understanding the importance of W patterns is essential. W patterns strengthen the continuation of a trend.

Trends that don’t experience reversal patterns like W’s at the support lack merit.

If you spot a trend without reversal patterns like W’s,

entering at the support means our trades won’t have high probability.

At Funds and Galore, we emphasize that our students place entries with high-probability setups.

To do this successfully, you also need to master the skill of being a patient trader.

This will help you grow your account over time and balance trading with your personal life.

Professional traders don’t spend all day looking at the charts;

instead, we spend less than two hours in the market.

Secret to Success: How to Approach the Practical Lesson

The first practical lesson will show you how to trade these patterns effectively.

Stay tuned and prepare to put these insights into action.

Conclusion

Mastering the M and W patterns at their respective support

and resistance areas is fundamental for successful trading.


Understanding these patterns allows you to make high-probability

trades and avoid common traps set by market makers.


At Funds and Galore, we prioritize high-probability setups and emphasize patience and strategy.


By focusing on these principles and integrating them into your trading routine,

you can achieve consistent success and maintain a balanced lifestyle.