True Smart Money Concept In Hindi | Bank Nifty (lecture 1)

What is SMC and Why Do We Need It?

Introduction to SMC

• The speaker introduces themselves as Gwyar and announces the start of a series on SMC (Smart Money Concepts), promising a comprehensive course from basics to advanced levels available on their YouTube channel.

• This introductory video aims to explain what SMC is and its necessity for traders, emphasizing that all traders work with various chart patterns, indicators, and price actions.

Understanding Trader Behavior

• The speaker discusses common trading tools like candlestick patterns, indicators (e.g., EMA, MACD, RSI), and how traders often jump into trades based on these signals.

• Despite using these tools, 99% of traders fail in the market. The speaker questions why this happens despite the presence of numerous trading strategies.

Market Dynamics

• The discussion shifts to the scale of daily trading in markets involving trillions of dollars, highlighting that large players such as banks and institutions operate differently than retail traders.

• The speaker challenges the audience's perception about whether big players rely solely on support/resistance or indicators for making trades.

Manipulation in Trading

• An example is given regarding trading based on a W pattern; however, it’s suggested that actual buying occurs at different points than where most are taught to trade.

• The speaker emphasizes that while patterns like W do work occasionally, they fail frequently enough that trust in them diminishes among retail traders.

Liquidity Creation

• A critical concept introduced is liquidity—how buying/selling orders create momentum in the market. Liquidity acts as fuel for market movements.

• Large players need liquidity to execute significant orders without causing drastic price changes. Retail orders can be filled quickly due to their smaller size compared to institutional orders.

Confusion Among Traders

• When large players place massive orders (in billions), they create zones of confusion where retail traders struggle between buying or selling decisions.

Understanding SMC and Market Dynamics

The Nature of Trading in the Market

• Traders are often engaged in buying and selling, leading to stop-loss hits due to premium decay. This results in market orders being filled after collecting stop-losses.

• The speaker emphasizes that if traders are executing trillion-dollar trades daily, relying solely on support, resistance, trend lines, or indicators is insufficient for success.

Critique of Traditional Trading Knowledge

• The speaker requests patience from listeners before judging the effectiveness of Smart Money Concepts (SMC), suggesting a complete understanding will come after all lectures are delivered.

• A significant number of traders fail despite having access to traditional knowledge about support and resistance; this raises questions about the efficacy of such strategies.

Limitations of Conventional Strategies

• Many traders have taken courses that focus on basic concepts like support and resistance but still struggle with profitability.

• The speaker plans to teach advanced SMC principles rather than conventional methods that have proven ineffective for many traders.

Introduction to SMC Learning

• Upcoming lectures will be crucial for understanding SMC; feedback on changes experienced by students post-learning is encouraged.

• Live trading examples will illustrate how the speaker identifies entry points based on market movements, showcasing practical applications of SMC.

Key Concepts in SMC

• The speaker describes using high timeframe Price Action Indicators (PI), capturing momentum through strategic entries and exits based on market behavior.

• Various terms related to SMC such as imbalance, order blocks, liquidity sweeps, etc., will be covered in detail during the course.

Importance of Advanced Knowledge

• Understanding liquidity is essential; lacking this knowledge can lead traders into traps set by larger players in the market.

• Acknowledges that most Indian traders lack sufficient knowledge about real trading practices which contributes to low profitability rates among them.

Commitment to Teaching Advanced Concepts

• The goal is to teach advanced concepts within SMC rather than basic strategies like support/resistance or price action alone.

• Emphasizes that SMC incorporates various sophisticated elements such as endorsement and order flow which will be taught comprehensively.

Anticipation for Student Success

• The speaker expresses hope that even a small number of students can achieve significant improvements through this course.

Understanding Trading Strategies

Key Concepts in Trading

• The speaker emphasizes the importance of deciding whether to trade based on SMC (Smart Money Concepts), support and resistance, or trend lines.

• A rhetorical question is posed regarding the belief that multi-trillion dollar trades are influenced by support, resistance, or trend lines.

• The speaker encourages viewers to reflect on their trading strategies and methodologies.

• Gratitude is expressed to the audience for their engagement up to this point in the discussion.