Ep 50 - Trade Supply and Demand Levels Like the Banks
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An historic episode 50 (mega!) of the podcast starts with a look back at Round The Clock Trader Live, a trading conference that we attended on Saturday. It was great to meet forex trading mentors and educators that we knew by name but not in person. It was even more great to meet some fans of the show and chat about their trading systems, hopes and dreams. We interviewed Andre Minassian - The Intuitive Trader - on stage and it was a tremendously enjoyable experience. We also bumped into our old pals at XTB and realised that we would be in a competing time slot with David Cheetham, their Chief Analyst! We compared attendance notes after and called it a draw....
Interviewing Andre on stage in front of real-life traders was a pretty cool experience, and a whole different thing to recording a podcast that can be edited! From a trading perspective, the big take-away for me was the value of experience and focus. Andre trades a small number of markets that he knows inside and out. It is this depth of knowledge that he believes enables him to trade intuitively. When you know, you know! You know?
Our trader interview for episode 50 needed to be a cracker. We’ve made it to half a century and felt that we owed it to our listeners to put out a legendary interview. Tom ranks this week in in his top five interviews that we have produced. We talked with Paul Scott, an ex Investment Banker who believes that Keep It Simple Stupid is the order of the day when choosing how to trade forex or any other asset class. He believes that institutional speculators, like the big investment banks, trade from specific historic price levels; levels that haven’t changed for decades. He trades these historic levels as he believes the price ranges between them on a routine basis.
Paul differentiates between the commercial forex buying by large companies who may need to pay foreign suppliers or repatriate foreign profits, and the forex speculation by banks. By drawing historic levels on his charts he can see where commercial currency buying is driving the price and at what point the big speculators will be jumping in. He believes that the speculators know at what levels the price is cheap and at what levels the price is expensive. By capitalising on these supply and demand price levels, Paul is able to make simple, profitable trades - up to 300 pips profit on EURUSD for 40 pips risked, for example.
Paul Scott’s stated mission is to turn retail traders into professional traders. If you want to find out more about Paul and how he picks the supply and demand levels that he trades, you can find his site at http://paulscottfx.com/
Our journey with Traders Support Club is continuing and we will be jumping into the video learning portion of the programme this week. As a partner of TBT, Tom has convinced Ali Crooks of TSC to offer the Two Blokes Trading audience an exceptional offer. Mention Two Blokes Trading when signing up for the Traders Support Club course to get money off worth hundreds of pounds!
Now that the French Election is out of the way, we should see a move away from political risk driving our trading, at least for the time being. But markets remain volatile, so stay sensible, and…