Get Your Complimentary Book and Trading Course – Text your email to Trading in the Shadow of the Smart Money. FTSE Stock Scan. Trading in the Shadow of the Smart Money Book - Ebook download as PDF File . pdf), Text File .txt) or read book online. Trading in the Shadow of the Smart. In “Trading in the Shadow of the Smart Money” Gavin discusses why market manipulation is actually Download the PDF "Master the Markets" by Tom Williams.
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Trading In the Shadow of the Smart Money by Mr. Gavin Holmes audiobook | * ebooks | Download PDF | ePub | DOC. # in eBooks File . Trading In the Shadow of the Smart Money Mr. Gavin Holmes, Tom Williams, Philip . Williams, Philip Friston, Sebastian Manby, Dr. Gary Dayton ebook PDF. In "Trading in the Shadow of the Smart Money" Gavin discusses why market manipulation is actually a good thing for traders and investors who.
On the other end of the line was a deep, but pleasant voice with a thick Yorkshire accent. Roy began to explain how Tom had started the company as a hobby. This implied that they had no marketing budget. Roy also explained that the company Tom had founded several years prior to promote the program, Genie Software Ltd.
The proposal was that the marketing arm would take a profit share in return for its services. At the outset I was skeptical and somewhat intrigued by Roys approach, so I asked him why he was interested in my company. Roy told me he picked about 60 companies he found on the Internet, and we were one of those companies that had suitable qualifications to suit their purposes.
I then asked how many phone calls and visits he had made, and what type and level of response he had received. We were one of the last companies on his list.
He had a dejected tone in his voice. I could sense that it was an issue to work without a marketing budget, and most likely, there had been little or no interest in the software. At this point, a little voice in my head urged me to invite him to call on me at my office to find out more. In those days my office was in Beckenham, Kent, which is approximately miles km from Yorkshire. I asked Roy if he had a business plan, and whether it was possible for him to come down from his base upcountry to visit me at my office in the south to discuss his proposal.
I was a bit surprised by the obvious enthusiasm with which he jumped at my suggestion, and we et a meeting the following week.
Roy informed me that he would be bringing along Tom Williams, the inventor of the program, to explain to me how the financial markets really work.
I was fascinated, to say the least, so the next few days passed by very slowly as I eagerly anticipated the follow up meeting. Roy and Tom arrived early and were asked to wait in the boardroom. The day was already hectic with my extremely busy exhibition design company and e-marketing business. I felt that I could give Roy and Tom 45 minutes out of my chaotic day for them 12 to show me the business plan. That should be enough time, I thought. I would meet with them briefly now, take it away, and digest its content later.
As I entered the boardroom, I noticed both men were very well dressed. Roy greeted me first and eagerly shook my hand. He struck me as being somewhat ill at ease, but went on to reveal that he used to work for Ernst and Young Cap Gemini, one of the worlds largest management consulting, outsourcing, and professional services companies.
Roy then quickly turned to introduce Tom Williams. Tom at first glance was an elderly gentleman that I estimated to be in his early 70s. He impressed me as highly alert and articulate.
This was going to be an interesting meeting! Roy handed me their business plan. It was well prepared and highly organized. He then began his presentation. As I mentioned before, I knew very little about the financial markets at that time and unfortunately, after about 15 minutes, I ceased to have the faintest idea what Roy was talking about!
I was about to call the meeting to an end since my day was already very busy, but Tom, on the other hand, would not let that happen. He had already noticed my body language during the presentation and as I was just about to speak, the distinguished gentleman held up his hand. With a glint in his eye and hand in the air, Tom said, Stop!
He then said, Gavin- lets go back to the beginning, and let me explain to you how the markets really work! With no hesitation, Tom began to explain the markets to me. All financial markets move on the universal law of Supply and Demand. When you say this to any trader or investor, they will nod in agreement and say Well thats obvious, tell me something new! However, what they do not understand is how to correctly pull this information out of a price chart.
It extracts the Supply and Demand information on a chart to give clear signals when the big players, or what I call Smart Money, are very active or inactive, so the user can trade in harmony with their moves.
Tom continued, You know, Gavin, the markets do not move by accident! They are not random as many traders and investors think. They are, however, deliberately manipulated to wrong-foot the unsuspecting herd, in other words, the uninformed traders. If you can read Supply and Demand by analyzing volume, you will give yourself a distinct trading advantage over the uninformed and unsuspecting herd, in order to position yourself where you too can trade in harmony with whats going on!
The markets are manipulated? I gasped.
Cmon Tom, I said naively, We have regulatory bodies here in England that prevent all that. I have friends in the city who trade and they would laugh if you told them that! Your eyes will be opened to the many opportunities on offer if you can interpret the action of the manipulators. I was spell bound. This fellow clearly knew something that I did not. So I let him continue with my next question being, So how do you know all this?
There was a reason why he was able to retire at 40 a very wealthy man, as I was to find out later. Well Gavin, in the late s, I decided I wanted to make money. Serious money. I was in my late twenties then and I had just sold my popular coffee bar, the Whisky Go-Go in Brighton. I was also a qualified registered nurse so I figured I would make my way to Beverly Hills, in California, since that was where the money was.
And thats exactly what I did. One of my earliest assignments with this agency was working for the family of a very wealthy oil tycoon and trading syndicate member. The family was deeply worried about this individual, who I will refer to as George because he had a drug addiction needing to be controlled. The family believed that a full-time Registered Nurse was necessary to monitor his behavior. I interviewed for the position and was chosen shortly afterwards.
George was the boss of an elite group of trading syndicates in the United States.
During that time, they traded mostly their own money and some money for others in the stock market. They were successful, but they shunned publicity. That was their nature, which is probably why very few people even knew of their existence. Their basic strategy was to target company stocks and remove what they called the Floating Supply of that stock if any of it was available on the open market.
This process could take months, sometimes even years, but eventually, the syndicate would be in majority control of that stock. This phase of downloading is known as accumulation.
When general market conditions appear favorable, the syndicate can then mark up the price of the stock, which is surprisingly easy since they have removed all the Floating Supply and Resistance to higher prices.
This means that the sellers of the stock have all but disappeared. It follows that there is thus very little stock left that can be sold once their price rally commences. At some time in the future, a point will be reached when the syndicate will take advantage of the higher prices obtained in the rally to take profits. This is now called the distribution phase. At this point, a handsome profit will be made for the syndicate and its members.
I asked Tom how the syndicate would get the Herd to download stock at much higher prices than what the syndicate had originally paid. Tom just gave me a big smile as he remembered the moment he was about to share with me.
Our syndicate had heavily accumulated them and it was time to take profits. To acquire this, any tricks are fair game.
For example, we would target the annual general meetings and ask bullish questions that would often be reported to the media the next day.
We would create as much positive news as possible in order to get the crowd excited. True or not, it was irrelevant to us, as long as people were downloading the now high- priced stock from the syndicate. This was very profitable business and is one of the basic reasons why there are Bull moves and Bear moves in the markets. Its Supply and Demand working in the longer term.
Ironically, the directors of most companies barely have an idea of why their stocks move up or down. They will have no clue why their stock declined, especially when the company is in better shape now than the previous year. To them there appears to be no logical reason why these moves happen.
However, the syndicates know better since they were actively involved in trading these stocks up and down!
The more Tom explained the mechanics of how the financial markets operated, the more absorbed I became. The minute turned pleasantly into an hour and 45 minutes, and before long, lunchtime was upon us. I instructed my Personal Assistant to cancel all my afternoon meetings because I had a feeling this could be something potentially very big. And now, as I write about this important event 9 years later in , how right I was!
The TradeGuider journey had begun. Back then, little did I know it, but Tom was grooming me to be his protg. I was to learn everything he knew and he would teach me to read the charts just like he did. Tom went to Beverly Hills to find his fortune where he met George, gained his trust and confidence, and became an established member of a trading syndicate that understood and played the game only insiders truly understood. It wasnt long before Tom was asked to start hand drawing the charts the syndicates would use to make their speculative attacks.
On his own admission, Toms hand drawn charts were a work of art. It turns out that he was a natural when it came to drawing and detail. The more Tom got involved with charting the various stocks hand-picked by the syndicate, the more inquisitive he became about what was going on with the price movement, the volume, and where the price closed.
Tom constantly asked the traders in the syndicate for information, but they were far too busy making money. It was here that he finally got a grip on what was happening. Tom realized that all clues were in the charts if you knew how to read them correctly. Tom spent twelve happy and prosperous years with the syndicate in Beverly Hills, and traveled all over the U.
By the age of 40, Tom had made enough money to live the rest of his life very comfortably and decided 15 it was time to move back to England. Then during his mid-forties, he downloadd a facility for retired folk so he could continue his nursing and fulfill his passion for helping others.
Tom continued to trade as well, but became consumed with all the knowledge he had learned from the syndicate and its traders back in the United States. This was also the time when computers were beginning to become more readily available to the general public Tom had a brilliant idea, which he spent the rest of his life developing and improving. He wanted to computerize the Wyckoff Method and the knowledge he had gained from that study to produce automated trading signals that did not have to rely on human intervention.
Tom scoured locally in Torquay, Devon, UK, to find a programmer skilled enough to interpret his specific instructions. The computer would need to identify download and sell setups using Volume Spread Analysis. This method of analyzing the market does not use past price formulas, which never seem to work.
Tom was only interested in: The Volume i. Its the point where the bar closes that is the most important of the three key analysis factors. Price closes either at the bottom, the middle, or the top of the current bar, and as such is considered extremely significant to the analysis. By good fortune, Tom stumbled across a newspaper advertisement for programming services situated close to where he lived.
He immediately arranged a meeting.
Tom was still unsure about whether his ideas were able to be programmed, let alone give the accurate trade setups this methodology produced. It was agreed with the programmer, Robert Harwood that they would at least give it a try and see what would happen. Within weeks, the first ten indicators were programmed in, and to their utter amazement, they worked!
The indicators gave clear and accurate signals of imbalances of Supply and Demand as they appeared. As the weeks went on, the indicators grew in number and were refined many times over. As the software progressed to the point of being a usable program, a rumor spread amongst Toms trading friends about his new program and its astonishing accuracy.
He began to sell the software for a small fee to his close friends and colleagues in the business. Amongst other things, this man recognized that tape reading was the key to becoming a successful, profitable trader.
I decided that this was an opportunity not to be missed. Tom left the meeting on a somber note. He looked at me and said, Gavin, always remember that the market has to have more losers than winners. It is devious. I have never heard the truth about the market through the media.
If you recall, the markets closed for a week. During that entire week, the news was horrific, especially the news about the future performance of the financial markets. Once the markets opened, they did indeed plummet and many media sources were predicting an inevitable Bear market. Grim-faced reporters looked at you from the television screens, telling you that billions of dollars were being wiped off the markets, and that a collapse was inevitable. On the surface, this news may have been partly true, but the general public will never be told the whole truth.
It is highly likely that the self-regulated exchanges were only too aware that all their traders were frantically downloading from the panicking sellers because a bargain was to be had.
A more truthful media report should have said this: Good evening ladies and gentleman. As you know the markets have re-opened today and prices have fallen rapidly as President Bush and Prime Minister Blair have warned of further attacks. This is having a negative impact on stock prices even though on 10th September these companies were in the same shape as they were on 12th September, so this panic selling seems somewhat irrational. The good news however is that we have direct contact with the insiders and market specialists on the various exchange floors, and they have told us that their traders are busy downloading everything that is being sold by the panic-stricken Herd.
You will see in a week or two that this market is not Bearish at all, but Bullish, and will rise rapidly as stocks and other instruments have passed from weak holders to strong holders. This will be clear from the massive volume to the downside. Note that the bar has closed in the middle, not on the low; this indicates that downloading must be taking place, and therefore, contrary to what the news is implying, prices will go up, not down. Remember, the chart never lies if you learn to read it correctly - and that is what I will teach you.
After that day, I contacted my business partner, Richard Bednall, and told him of this great opportunity. After some due diligence, and speaking with some of the city traders I knew, we were convinced that this was a most worthwhile venture that would help retail traders and investors to start to level the playing field, and give them the opportunity to make money in harmony with the manipulators.
I began to see things I had never seen before. I began to read the chart as a musician would read music.
I felt enlightened and open minded, seeing things for what they really were, and not how they are reported in the mainstream media.
I promised Tom I would help him continue his work to show unenlightened traders how to find the truth and thereby become profitable in the markets. So with that said, I hope you enjoy this book. I also hope you read it more than once truly to embrace the knowledge imparted within. This day is now referred to as the Flash Crash. Even as I write about this more than 6 months after that eventful day, no credible explanation has been provided by the regulatory authorities as to exactly what caused the crash or who was responsible.
In fact, many investors began to suspect that all was not what it seemed.
Below is a transcript of fellow reporter Matt Nesto explaining to Bartiromo some unusual anomalies in a number of stocks, even though the mainstream media claimed that it was caused by a lone trader from a major banking institution hitting the wrong button.
The conversation went as follows: The conversation is also available to view on Youtube. I mean, weve talked a lot about Accenture, ACN. This is a Dublin-based company. It's not in any of the indexes. So those have at least eight names that they're going to have to track down on top of the Accenture trade, where we have the stock price intraday showing us at least, we'll assume, a bogus trade of zero. This is outrageous. According to Nesto, these are frequent occurrences, at least at the NASDAQ exchange, and if you make a trade and lose money, theres no recourse.
It really does. And they go back and they correct. And the thing that stinks is if you, in good faith, put in a trade and made money and then lost it, you lose it. And there's no recourse and there's no way to appeal. When I called Tom Williams about what happened and I mentioned that CNBC had actually reported the trading activity that day as market manipulation, Tom laughed and said jokingly, I bet there is a signal in our TradeGuider software program showing what we call a Shakeout.
To my amazement, I opened the program and there it was. Bar Description: A 'Shakeout' is a mark down on a wide spread closing up near the high to shake out weak holders. If volume is low, then supply has dried up. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress.
All markets work because they are governed by three universal laws, which are the law of supply and demand, the law of cause and effect and the law of effort versus result. To make money in life there is a fourth and very important law, the law of attraction, and for the first time in any book on trading that we are aware of Gavin unlocks the key to success in trading and investing in the markets: BELIEF in your human ability to make money and in your system to read charts.
The book gives actual trade set ups taught to Gavin by Tom Williams and gives over 50 annotated color charts explaining the VSA principles bar by bar. There are 12 chapters of the book as follows with a brief description of each chapter. About the author - In Gavin Holmes had the good fortune to meet Tom Williams, a former syndicate trader who traded with one of the largest stock trading funds in America during the late ?
Tom wrote two books that he self published,? Master the Markets?. Both books have now sold or been distributed to over , traders and investors worldwide.
Tom connected with Gavin, and at their first meeting Tom explained that the markets were being manipulated on a daily basis by the? Smart Money?. Tom was himself a? Smart Money? Tom developed a methodology called Volume Spread Analysis and computerized his system with amazing results.