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THE MEAT GRINDER: HOW THE INDUSTRY HARVES RETAIL TRADERS
If you are new to trading, understand this clearly: You are the prey. You are not the hunter. You are not the smart money. You are the liquidity. You are the exit strategy for someone who is bigger, faster, and better informed than you. And if you trade the way the internet tells you to trade, you will be ground into dust. If you have been around for a while, you already know this. You have felt the friction. You have lost money on perfect setups. You have watched the rules change the exact second you clicked buy. You know the game is rigged. This course is not here to hold your hand. It is here to give you the map of the abattoir so you can walk out of it. Here is who is standing on the other side of your screen. 1. THE BROKERS: THE CHURN Your broker does not make money when you win. They make money when you trade. They collect the spread. They collect the commissions. They sell your order flow to high-frequency traders. To a broker, a highly active trader using technical analysis is a walking cash register. They will give you a hundred lagging indicators and a hundred chart patterns because it encourages you to click the button. And buried in the terms and conditions is the legal disclaimer that 70-90% of you will lose everything. They know you won't read it. But legally, they washed their hands. 2. THE SIGNAL SELLERS: THE EXIT LIQUIDITY When you see a "live trade" or a "perfect setup" posted online, ask yourself one question: Who is on the other side of that trade? If a large player is telling you to buy, they need someone to buy from them. You are the demand. They are already positioned. They need your money to push the price up so they can dump their shares on your head. You are not joining the trade. You are the exit strategy for the trade. 3. THE GURUS: THE CULT OF HOPE The internet is a sewer of Reddit threads, TikTokers, and YouTube gurus selling technical analysis courses. Some are outright frauds selling Lamborghinis. But the ones who are worse? The ones who are just as trapped as you are. They failed, lost their money, and now they sell the illusion of certainty to you.
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to start the foundation course. CLASSROOM The full course is now available with premium membership. Remember, I'm here if you need advice. Just DM.
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Learning how to invest in the stock market - The structure underneath the chart
TL;DR: Learning how to invest in the stock market starts with understanding the market rather than the chart. This video is an overview of the foundation almost nobody teaches - the structure underneath the chart that determines what a stock actually is, why it moves, and who is on the other side of every trade. (Try our free foundation modules) https://www.skool.com/trading-beyond-charts-1603/classroom The conventional entry point into investing education is a chart. The learner is shown a shape, told it repeats, and invited to trade on it. The structural reality is different. A chart is an output. It is the visible residue of transactions that have already occurred. The mechanism that produces the residue is what matters, and it is almost never taught. The plumbing of the market determines what a stock actually is and how it can move. Shares. The float. The spread. Leverage. A share is a claim on a business. The float is the number of those claims actually available for public trading. The spread is the cost of entering and exiting. Leverage magnifies both direction and risk. These are mechanical features, not aesthetic ones. The participants determine who is on the other side of every trade. Market makers provide liquidity and manage inventory. Institutions work large orders over time, often using algorithmic execution. Short sellers borrow shares and are constrained by borrow cost and squeeze risk. Retail traders operate with less information and fewer structural advantages. The behaviour of price is the aggregate result of their interaction. Risk and the tape are the primary sources of information once the chart has been set aside. The tape records what is actually being bought and sold, at what size, and at what pace. Risk has structural components: position size, exposure, liquidity, borrow cost, correlation. Managing risk structurally is a different discipline from setting a stop-loss. The framework that holds these elements together is testable. It approaches the market as a system of stocks, flows, feedback loops, and boundaries. Price is treated as an output of system dynamics rather than as an input to be predicted. The micro environment covers order flow and execution. The macro environment covers the conditions that constrain the micro. Narrative and reflexivity explain how beliefs feed back into price. Exposure and execution determine what a position actually risks and what it costs to act. Stress testing asks what would happen if the assumptions failed.
Why Bid-Ask Spreads Widen?
I’ve just published a new structural analysis on the Open University blog: Why Do Bid-Ask Spreads Widen? Adverse Selection, Market Depth, and Liquidity Risk. If you have ever been stopped out or suffered massive slippage during a volatility spike, this breaks down why liquidity providers pull their quotes. It covers the mechanical link between market depth, adverse selection, and the price of immediacy. Read the full article here: https://learn1.open.ac.uk/mod/oublog/viewpost.php?post=369941 Question for the community: When you're sizing a position, how much do you factor in the current spread and the depth of the order book? Do you avoid trading thin markets entirely?
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The Hidden Architecture of Order Routing
I’ve just published a new structural analysis on the Open University blog: How Do Order Types Work? Execution Mechanics and Market Microstructure. If you want to understand why your market orders suffer slippage and how PFOF routes your orders to wholesalers, this breaks down the mechanical reality of execution. It also covers the order book (Level 2) and why the visible price is not the whole picture. Read the full article here: https://learn1.open.ac.uk/mod/oublog/viewpost.php?post=369911 Question for the community: Do you check your broker's SEC Rule 606 report to see where your orders are actually routed? Do you trade differently knowing this?
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