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