Scoring in the Forex Red-Zone with Institutional Target Trading
It’s Sunday afternoon, your team is in the playoffs and the hair is standing on the back of your neck. Once again, they’ve grounded and pounded an agonizing 80 yards over seven minutes to find themselves knocking on the door again.
Will they get it done and come away with a TD and 7 to keep this close? Or will they eke out another field goal, essentially wasting all that time for only three points? The game hangs in the balance and time is running out.
Every second of every trading day, retail traders toil for hours only to come away with a few measly field goals. Not nearly enough to reflect the effort – or round the corner in making a full-time income from their trading efforts.
Fortunately there is a way to efficiently trade, the way the institutions do – with profits that reflect the effort.
Why most retail traders toil for losses, or field goals at best
When an NFL offense gets inside the 20, otherwise known as the ‘Red Zone’, the likelihood of scoring is at least 30% for all 32 teams. For those of you who have stuck with your team’s drive into the red zone, the agony of the play-by-play can be too much to bear.
Coming away with anything other than a touchdown – or worse yet, a turnover – is like a shot to the gut. Yet that’s the reward millions of retail traders receive for their hard work every day, every minute, in every currency pair out there.
They spend most of their time agonizing over trades that only net a few measly pips, taking several exhausting hours to generate a few bucks. Why? They are simply unable to spot or anticipate the rate swings that deliver big profits.
Looking at blank candles and hoping for a formation that’s favorable – they settle for micro swings that are incredibly risky and yield limited, highly inconsistent results.
This can be changed by seeing what the institutions see and trading when they trade – through Institutional Target Trading.
Trading for touchdowns without risking more time or capital
For many NFL teams the mix of pass and run plays is about 50/50 when in the red zone. The Packers led the league for a period in 2015 with 69% of their red zone plays being pass plays – until the head coach took back the play-calling responsibilities. Needless to say, being unpredictable is an advantage.
Not so much when trying to generate a profit in Forex. When in the red zone, you can run or scalp, which will be time-consuming and increase your potential risk. Or you can incorporate Institutional Target Trading – which is essentially a highly-targeted passing strategy.
Designed to spot and exploit macro swings in any given currency pair, Institutional Target Trading means you’ll likely be in fewer trades for a longer period of time. All with the goal of generating far more pips in relatively the same amount of time it would take you to eke out a few bucks.
At the core of this strategy: The ability to see the activity within each candle – in real-time. This allows you to see the aggressive activity on the bid and the ask side at major price levels in a currency pair. Think about that for a second. You can see what’s happening within every candle of your currency pair.
So instead of reading tails – you can now spot tapering activity and know when a big swing may be on the way. Game-changing!
Spotting red zone entries that consistently score
As you would expect, it’s the top defenses that make their reputation on stuffing teams once they reach the red zone. The best red zone defense in the league this year? The New York Giants – who have allowed a team to score only 39% of the time so far.
Don’t let the market stuff you on big moves. Use Institutional Target Trading to determine when a big swing is taking place. Note the EUR/JPY chart below. You can spend your time attempting to read micro shifts in the rate – or you can stalk a big swing after a dip takes place.
After the initial dip takes hold, you can clearly see how selling activity tapers off and the buyers step in. Comparing this to your typical candle chart – you would still be trying to guess on the support level that would pay off and likely be late on this big move.
Different from your red/green signals
Just like the NFL, the concept of a ‘sure’ thing is a fallacy. Unlike the rate-based signals and indicators that glut the Forex trading landscape – Institutional Target Trading is a methodology, not a signal.
The methodology is predicated on analyzing the buying and selling behavior that takes place at different rate levels to target bigger macro swings.
Being able to read the behavior that takes place within each candle is what spells the difference between a trinket with red/green arrows – and the practices that institutional traders employ every day to generate profits.
Understanding the difference between this approach, and the signals that you may have bought before, is a big part of making the leap from retail rookie to an institutionally-minded pro.
Additionally, this methodology is predicated on preserving capital by incorporating risk mitigation measures – should the rate go against you.
Trade your break-even efforts for championship profits
Believe it or not, it’s the Dallas Cowboys who have the most postseason wins, currently sitting at 34. They’ve also found their way to the Super Bowl five times – so if you’re grading on the curve, they’re still America’s team. If you look at the last 10 years however – it hasn’t been pretty.
One thing is for sure: They didn’t win their Super Bowls by only kicking field goals. They knew how to get into the endzone, and did so efficiently – thanks in the golden years to Troy Aikman and Emmitt Smith.
You can turn a peewee offense into an NFL juggernaut with Institutional Target Trading. Instead of pushing for micro moves in your selected currency pair, target macro shifts that will deliver more pips over the same period of time.
Take the inside view that Order Flow Sequence Tracking gives you, tracking tapering activity after big rips and dips. Get in with the institutional traders that really drive the market’s volume.
Turn your trades into touchdowns and advance your account to postseason glory!