Dongfang District reported earlier this week that Taiwanese YouTuber "Haobang Bump" released a video titled "Become an institutional trader and you can earn 6 million!...", which triggered heated discussions in the community. (Note in the moving area: The rewards he mentioned are not real dollars, but simulated gold. It is also very difficult to get real rewards. The author does not recommend that novices try it).
In addition, in the video, Bump introduced that he and his team used the "SMC trading strategy" in the trading exam and said that the points were captured very accurately. Of the 6 people in his team who took the exam using this trading strategy, 3 passed the exam and passed. The rate reached 50%, and he even used this strategy to pass the level three times in a row.
What exactly does "SMC trading strategy" mean? Is its winning rate really that high? The following will give you a quick introduction.
What is "SMC Trading Strategy"?
SMC trading strategy is also called "Smart Money Strategy", and SMC refers to Smart Money Concept. It is reported online that this strategy was invented by foreign trader The Inner Circle Trader (ICT).
According to online information, the core concept of SMC trading strategy is to use the behavior of institutional investors (that is, smart money) to make trading decisions, and follow these influential market participants to increase the winning rate.
The general steps for an SMC trading strategy are:
- Confirm market direction
- Looking for liquidity
- Guessing the price points that smart money might be interested in
- Look for entry opportunities on smaller timescales
Is "SMC Trading Strategy" really that amazing?
However, after the author actually understands it, it may be too much to say that this strategy is called smart money. It can only be said that it is a common trading strategy that integrates morphology. Because this strategy does not actually track the flow of large funds from these institutions, most of it just predicts from the current trend of the K-line chart which point can hit the stop loss of the leverager to obtain liquidity.
Although this does often happen in market fluctuations, it is a big problem for beginners to make accurate judgments, and the supporting strict stop loss/take profit settings are also indispensable. But the amazing thing is that since this year, many Internet celebrities have been promoting this trading strategy in the community, with titles such as "Trading plug-in with a winning rate of 95%", "Trading strategies that ordinary girls can master"... Attract investor attention.
We know that trading is a difficult thing, and there are very few traders who can make sustained profits. Taking "SMC Trading Strategy" as the bible of investors, the author believes that it is mostly composed of words, and I do not even rule out the possibility that there is something behind it. Some self-employed traders may share this strategy to advertise...
Opposition in the community
In this regard, a YouTuber "Sapphire Man" also released a video 5 months ago, saying that SMC is not a trading bible. The core shortcoming of SMC trading is that there are actually hundreds of institutions in the market at the same time. When participating in transactions, every K-line is the result of a game of market funds. Therefore, it is very difficult or even ridiculous to judge the trends of institutions. Therefore, the high dependence on institutions has led to SMC not treating ordinary retail traders. It is not a trading method with a high winning rate, nor is it a good concept to explain market changes:
SMC's trading logic first assumes an enemy, and then makes trading decisions based on this bias against market changes. But the problem is that the market does not operate like this. The market is composed of a variety of participants. Yes, the market only includes people who trade with SMC, which is not wrong, but it is not the whole market.
As for those who promote SMC, Sapphire added that these people just want to make money by selling courses on SMC:
If you search on the Internet, you will find a bunch of ICT and SMC courses for sale. There are a lot of so-called free groups, but they actually require you to pay for the courses. Don’t be fooled~
First lecturers themselves usually do not have long-term profitability
The second course is actually full of errors and omissions. SMC is a bunch of new terms that have been coined, but what is actually taught is just a bunch of old stuff. There is no difference. These lecturers are just using this gimmick to make money. , either selling courses or secretly having an agency cash flow relationship with a certain exchange or unknown securities firm on the Internet.
Third, most people simply cannot and cannot learn to make money through trading.
In general, the author believes that SMC is a common trading strategy, but to truly make sustained profits requires a lot of additional data support, as well as a lot of research and experience, which is provided for readers' reference.
