Trading with SMART MONEY

Trading with Smart Money

Trading with Smart Money(SM) Tutorials

In this Trading with Smart Money tutorials series, we will cover all the features of Trading and Smart Money. You will learn from the basic to advance level features of Trading and Smart Money as we progress in these tutorials series. 

How does the market really work?

All financial markets work on the universal law of Supply and Demand.

Law of Demand– The higher the price of an item, the fewer the demand (buyers don’t want to buy at a higher price), and the lower the price, the higher the demand (buyers want to buy at a low price)

Law of Supply– The higher the price of an item, the higher the supply (sellers want to sell at a higher price) and lower the price, lower the supply (sellers don’t want to supply at a lower price

So prices go up to find sellers and then go down to find buyers

Let’s think from the perspective of a big player/smart money(SM). Smart Money (SM), what they do is remove the floating supply of stock by buying, this process is called accumulation. Now they have the power to move the stock up or down.

When general market conditions appear favorable, the Smart Money can then mark up the price of the stock At some time in the future, a point will be reached when the SM will take advantage of the higher prices obtained in the rally to take profits by beginning to sell the stock back to the uninformed traders/investors. This is now called the distribution phase.

Why does the price move?

What truly moves the price is AGGRESSION. If the price goes up, then the buyers are more aggressive. If it goes down, then sellers are more aggressive.

If you are aggressive, you want to buy or sell NOW. If you want something NOW and you want to be 100 % sure you will get it, you need to use MARKET ORDER. This type of order means that whatever the price is, your order will get filled. In other words: you place a MARKET ORDER to buy or sell immediately at the best available current price

It is the aggressive market participants, who drive the price aggressively up or down with their market orders. This is the true reason why the price moves. After accumulation or distribution, the smart money AGGRESSIVELY move price higher or lower

Trading with Smart Money

Who they are?
  1. They Actually move the market, they have the power
  2. They have the ability to influence values and direction
  3. They have the ability to pick against the trend or to pick top or bottom
  4. They usually move the price at very low volume
How to spot Smart Money (SM)?

Through analyzing

  1. The Spread (i.e. range of the price bar)
  2. The Close (the point where the price closes on the current bar)
  3. The Volume (i.e. activity),
How to trade with Smart Money?

So, TRADING WITH Smart Money IS ABOUT to GO WITH Smart Money IF THEY BUYING WE WILL BUY. We will discuss all topics with greater details in a step by step process

About Me:

I am R. Ratnakar and working as a day trader. Trading since 2015 in stock and future. I am a learner of the stock market and still, learning and updating my skills. I have decided to help aspiring traders by reducing their learning curve by giving what I learned. Please join my Telegram Channel to learn more and clear your doubts.


Trading involves the risk of financial loss. The information provided here is for education purposes only.

Note: If we missed any topics or if you want to learn any topics, then let us know by giving a comment in the comment box and we will definitely make a video as well as publish an article on the same as soon as possible.

Course Information

Course Instructor

Dot Net Tutorials Dot Net Tutorials Author

Price Action

Day Trading Strategies

Risk Management

Stock Selection & Live Scanner

Intraday Trading Course 2020

Volume Price Action Analysis

Option Chain Analysis




Chart Patterns

11 thoughts on “Trading with Smart Money”

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    Good work.
    Wish you can develop & share Trading strategy Python programs on Zerodha Kite api, helpful to retail traders for algo based day trading

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    Hi sir please design a strategy which u rely most and give training with small amount so that we can learn from u as u have great knowledge.

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    I have gone through most of the course, but I didn’t finish, starting again today from scratch since it has been a while. My only wish is that you get to translate or narrate the videos in English, Videos give much more clarity as it is a practical activity being done, besides besides, I love your work sir, its wort alot yet its free from you, thank you for presenting us with an opportunity to learn

  4. Pingback: Two Free (Great and Legal) eBooks about Trading – Blue Jay Bird

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