After watching this video until the end, we are going to understand everything that you need to know about synthetic indices in dc.
So here’s what you are going to learn number one is what are synthetic indices and i’m gonna show you the different types of synthetic indices that you need to know, then that you can trade and also can the broker really manipulate synthetic indices prices. This is one of the biggest questions that people have about synthetic indices and the pros and cons of trading synthetic indices.
I’m going to show you if you really want to choose synthetic indices or if you really want to leave them or stay away, and also i’m going to give you the top tips that you need to profit from synthetic indices? So, let’s start off with what are synthetic indices. Synthetic indices is just indices that simulate real world market, but these indices are computer generated. So let me let me explain this a little bit fed. So if you look at this chart here in this picture on the screen here, you can see that these are people in a betting shop right.
So these are people in a betting shop, and you know if you have been ever been to a betting shop. You know what happens in there there’s a corner where there’s some people who are looking at a small screen there at some screen there and they’re looking at what is called um virtual football and this type of football it only plays for 90 seconds payment right! So these games are computer generated right, which means um. The the betting house or the beta cannot know the the result before the match happens right. So this is exactly what happens with synthetic indices right, so synthetic indices are computer generated, but they they they simulate. What happens in the real forex market like they follow the support and resistance. They follow everything in technical analysis that you can do in the real world market, but you have to know that these markets are computer generated, which means every result that you that comes out in the synthetic indices trading is not coming from the real world market it coming from what the computer is? Uh is uh predicting for you at that moment right. So let me explain this a little bit further, so that you can understand. Like so! Let’s say you are playing a fifa game right! Let’s say you are playing that fifa game and you want to see you you! You want to simulate the match between two teams right. You know that you can simulate the match and the match is going to be played without you being involved, but you cannot predict the result of the match! That is simply uh. What synthetic indices does? So when you are placing trades on synthetic indices, you are just betting on uh matches that um just betting on matches uh on the on the market that has been. That is moving right? So, let’s say: let’s say you you, you place a buy on a volatility indices, you’re, going to see that if the market goes up, it simply means it’s simply because the the the computer, if, if, if you have predicted ndf uh generated numbers to push the the prices highway, so the supply and demand of synthetic indices is not uh is not contributed by real people, making uh placing trades, but it’s all all from the from the computers right. So it’s kind of a software right! So can the broker really manipulate the synthetic indices? because if i start talking about it’s, not a real market, so now you are thinking that the broker can really uh change. What is happening and take your money but think about this there’s, maybe the broker that is offering synthetic indices. For example, the reef there’s got maybe two or three million people trading! So do you think that the reef will change the whole market for your ten dollar trade? i don’t think so! So can the can the broker really manipulate uh, the the the the indices? well, what happens is with the synthetic indices they are!
They are generated from a cryptographically, secure, random numbers right, so this uh, this cryptographically, secure random numbers are created by a third party software so that you and the broker cannot know what happens? Now. Let’s talk about the different types of synthetic indices, so we have got uh the the volatility indices and the boom and crash indices. We have got the step indices, the range indices and the jump indices right.
These are the types of indices that you can trade and let me get deep into each and every one of them and let me explain how these work. We start off with the volatility indices, so the volatility indices is just an indice that measures the volatility right. Is it it’s just an index that have different volatilities right? it’s just a move, just like any other market, but if it have got different levels of volatility and also it have got constant volatility, pay each and every level. So let me explain: let’s say you are trading the volatility 10 in this. You are going to be trading even in the morning in the afternoon in the evening, in the in the night! Right in the middle of the night or even tomorrow morning, but you are just trading the same level of volatility right so because uh for most people, what happens is if you go into the forex market right if you go to into the forex market now i’m jumping into the pros and cons, but i’m not gonna go deep into that? But if you go to the forex market, you can see that there’s some times that you can trade in there. Sometimes that there’s no volatility. The market is just ranging between some levels and you cannot uh, implement your strategies and it’s very, very frustrating, and you end up placing very little trades. But if you, if you trade, synthetic indices right, if you trade like volatility indices, then you are going to see that as long as you are trading, the volatility 10 indices, the volatility? The level of volatility is the same in the morning in the afternoon in the evening. In the night right, if you’re trading for 300 the same level of volatility is going to be the same, so the difference between them is that the volatility team you’ve got only 10 percent of the volatility 100 in this right. The 1400 is the most volatile of these indices.
It moves a lot right if you have a huge account, if you know what you are doing, if you trade the over 300 in this or the validity 75 in this they’re, going to make a lot of money right.
But if you, if you have a small account, you have good uh, you don’t have much of the experience every small account.
I would advise you to start off with the volatility team in this, because it have got only 10 percent of the variety it means it doesn’t move a a a lot right, which means your account can be a little bit safe?
You can place small trades and get uh small gains right because it’s for me! I believe that forex is just a game of probabilities. Right, you have to lose some. You have to win some right? It’s not like! you have to win hundred percent of the time. There’s nothing like that in forex. If you ever see some someone telling you that they’ve got a 99 win rate strategy, even on this youtube, i probably can tell you that that person is lying to you, because what i know is when i place 100 trades, i can win 60 trades and lose 40 trades, but what i make sure is my wins are bigger than my losses right, because that is the most important thing in trading right. Let’s talk about other other indices right! The booming crash is simply in in this? That makes some kind of uh a funny pattern right. It makes small tick, small, tix, motifs and then one huge spike right. It makes a series of small ticks and one huge spike in most of the time. What happens here is it makes like 500 tricks and then in every 500 tricks, there’s an one average of one huge spike right that they that that’s why they call crash 500. .
So if they say crash 1000, you have to know that in every 1000 ticks there’s an average of one spike right.
So you have to know that if you look at the chart right here on the screen right now, you can see that there is a small series of small ticks and one spike small series of small ticks and huge spikes right.
As you can see right here, we have three spikes in a row!
This happens sometimes because what they say is one average spike, which means they can be zero spikes!
They can be one spike, two spikes, three spikes, maybe four spikes. This is an average right. This is an estimation? This is not?
This information is not from from the reef or it’s not from other traders right? This is just an estimation from meta trader. The trading platform that records this data right.
So there’s four types of uh spikes, there’s uh these four types of uh booming crash indices. We have good crash 1000 boom, 1000 crash 300 and boom 300 right. You can trade these and have good other tutorials that teach you how to do that. I will leave the link in the description now. We have good jump, 10 indices, we have got jump 25. This is called jump indices right, uh, this one uh? What they do is it’s just like the volatility indices right, they’ve, just they’ve different types of volatilities right. If you master jump, 10 indices, you’re, going to see that there’s lower volatility there, the market doesn’t move as much right, it’s safe for small accounts, and if you, if you have a huge account, you know what you are doing. Maybe you wanted the jump hundred, because the volatility in the jump hundred is bigger than the volatility in the jump ten in this right. So there’s a um. For example, this is uh, they say uh in this industry. You’ve got a 10 percent volatility in three jumps per hour on average, so this is jump 10 right, so jump. 10 you’ve got a an average of uh three jumps per hour! So this job three jumps? What happens is when it is. It makes small ticks more ticks. Is the market moves with ticks right? so it’s it’s?
If you, if you watch uh this this line, this um this uh press line, you can see that it will be making some ticks say one two three and then, if this is in indices, it can say one two, three four and say boom one two, three four boom right!
So this is how this moves right, this same kind of a pattern right, so you can see that maybe it’s much easier for you to trade this, because you already know that this is going to happen right. You are no longer like predicting from nowhere like in the forex market! Right, i’m not saying the forex market is bad! I trade the forex market.
I like the trade to trade, the forex market, but i’ve seen them.
I’ve seen that synthetic indices have become maybe better because the i have flexibility. I know i can stick to technical analysis? I’m gonna talk about all those things in the pros and cons, so stay tuned until the end of this video. Let’s move on to some indices that we have! We also have the range uh. The range indices in this trip in this is right. So the range indices is really uh, some indices that i i i look at and i say how can i really make money from this market right? so look at these guys, this indices, what they do is they simply have got some ranges right? They move and they create some ranges uh they clear some ranges and once in a while, they will break that range? So they will obviously make this range and once in a in any while they’ll break that range right, so uh this!
So, for example, this is uh the range 100 right, so you might be? You might be wondering where am i looking at when i look this side right? so let me show you what is happening there?
I have a big screen right there and i’m i’m seeing this presentation so that i can really explain this to you? So if you look at this, i uh there’s a range and then once in a while, they break uh past this range right. So this is called a range index. So you have to know that once it enters a range, it’s going to stay in a range for a while, but it’s sooner or later it’s going to break that range. So you might you don’t know what is what is going on, but sooner or later that is going to break that range right. So these are the types of indices right! If you want to learn uh step by step each and every indice, you want to understand all these indices? I have got a post, a full guide on my website trading with turn? Com!
That will show you everything that you need to know about these indices, explaining each and every one of them so i’ll leave the link in the description below so make sure after watching this video check the description of this video because there’s some very, very important links in there now, let’s talk about which brokers offers synthetic indices right!
This is a huge question, but the truth is there’s only one broker that i know that offers synthetic indices and the broker is called derive right derive is the only broker that offers synthetic indices. I’m not gonna go deep into everything about the reef right? If you go to my website, i’ve got a review about the reef. I will leave the link in the description if you want to watch the video version of that i’ll also leave the link in the description below. Let’s move on to the pros and cons of trading synthetic indices, what are the advantages and disadvantages of trading these synthetic indices and you’re going to start off with the advantages right number one is high leverage and ted spreads. Leverage is two things in trading. It’s a double edged sword right. Leverage is good for good traders in leverage is bad for beginner traders? I want to say that, because what happens with leverage is, if you leverage your account with too much leverage- and you don’t know what what is what you are doing- you are always going to blow the account. So you have to understand something about leverage. You don’t know what you don’t want huge leverage, but in synthetic indices, this there’s some type of um options that i can play around!
If i have like a large right, i would say the lower volatility indices like i can trade, the velocity retain right. I can trade like the jump in this is 10 right!
It doesn’t move much so since i have got a high leverage, i can balance that so that my account is safe. If i have a small account right, but the good thing is they’ve got very, very tight spreads right because these are computer generated? These spreads are not are not are not!
Uh are not affected about how much demand or how much supply is there, because you know uh in uh, in in the real forex market, world, uh the supply and the demand it plays some kind of a role in if, if people are wanting to buy in people i want i want more people are wanting to buy and more people are wanting to sell. There’s some uh, some things that happens with the spread and all those things like that, this um, but in synthetic indices, what happens is the computer is always going to generate moves? it doesn’t matter if there’s more buyers or more sales, more sellers in the market! It’s just going to generate generate these moves? According to how um the program was like um, what did they say was programmed right? okay, i’m just doing some jokes to keep you guys interested if you’re liking? This video make sure you click that, like button, if you are new to this channel, smash that subscribe button and let’s keep moving number two advantage of trading synthetic indices is 24 7 trading. These are computer generated, as i said, so that does that means the weekend doesn’t affect your trading. There’s nothing like uh overnight trades like holding overnight? All those things like traders know how painful it is to close on a friday on a low side, because you don’t know what happens on the monday morning right.
The market can even uh worsen your trades right so in synthetic indices, it’s always running monday to sunday, monday to sunday, 24, 7 and the same constant volatility. If you are trading boom, 1000 is going to be boom 1000, and what is going to have to be happening is the same right.
So you want to you, you can see that there is going to be always some patterns that you can!
You can see trending and going right, but one thing that i wanted you to know is: if you are trading synthetic indices, make sure you are flexible enough to change strategies change strategies. If you see that this strategy is no longer working uh, you have to change it right, but you don’t have to change in one day, i’m not saying change the strategies every day, i’m saying if you said like for three four five months and you see now, your strategy is now getting uh more uh, not getting enough results as it used to you have to change that strategy because uh what happens this is the computer generated right, so these numbers can change. This anything can happen in terms of pattern, support and resistance, all those things right? So i put a lot of strategies on this channel. You can check out click on the channel and go to our videos and see the list of videos that we have about strategies and subscribe if you are new so that you won’t miss any of them, the number three advantage is not affected by news. These are computer generated right guys, as you already know.
How many times have you ever been in a trade and the non-farm payroll right, the nun from payroll is coming and you are in a trade. How do you feel as a trader? you know that in the next minutes, i’m maybe i’m gonna go very rich!
I’m gonna go very broke right, so you cannot. You cannot really uh plan towards events right and the none from peru is not the only event that affects right this! This trump tweets right now! That trump is not the president anymore, but there was trump tweets in this all those things that could affect the real market right, but synthetic indices! They are computer generated, they are always running in the same manner and they are same. They are doing the same thing that they did. Maybe yesterday, yesterday a day before yesterday, right and also you have to know that they can be traded with technical analysis only right.
This is the advantage if, if this is not affected by news, that means i don’t have to worry about fundamental analysis.
I don’t have to worry about sentimental analysis. All i have to worry about is technical analysis, candlestick patterns, uh support and resistance. All those things around technical analysis?
These are the only thing that i need to master right, so that means i can narrow down my learning curve and focus on technical analysis so that i can get results now? This is this is a lot of advantages, but let’s, let’s look at the cons? The disadvantages number one leverage is dangerous for beginners. Yes, because most people think that if you’re telling people about forex trading, you have to tell them that you always going to make money. No, no, no, no! no! no! no! this is not what i do on this channel!
If you have been following from day one right, i’ve been telling you that you are going to lose some trade right and in those losing trades, that’s where most people fail in forex trading, because most people they are not focused on what is going to happen in a long term, the most people they want to. They don’t want to lose traders hate losing! I hate losing right, but i have to accept it because i chose to become a trader, so i have to lose some trades, but my job as a trader is to balance my losses and win so that my wins are bigger than the losses. If the game is a game of probability guys, so i wrote about all these things in our ebook right. You can check it on the description below if you want. I have got this book and this book is going to show you how to change your mindset as a trader right. So let me tell you that leverage is dangerous as a beginning as a beginner, because as a beginner, you can make a lot of money in a short period of time or you can lose a lot of money in a short period of time right? So leverage is good or it’s either bad, but for beginners i i recommend you if you, if you, if you are a county, if good big leverage stick to the low volatility, um indices right in number two, the disadvantages- i can say, is it’s not a real market guys. So again i cannot say i cannot assure you that people are transparent. I don’t know what happens in uh in big uh industry uh business right, i don’t know what they do: the broker and the synthetic indices uh, the the synthetic indices, uh provider right. I don’t know what they can do behind our big ass traders right as traders there’s a lot of traders.
Oh almost almost all the trader is researching about. Can the broker really manipulate right? so one piece of information that can go wrong about manipulation can break the broker’s reputation. So, that’s why i think that the broker cannot risk manipulating our trades, because once we get that information as traders, the broker is out of business right, but this is. We have to know that this is not a real market right. We cannot say: okay, uh. This is a point where most people cannot keep buying right because sometimes when people are trading in the stock market in the forex market, because they can say, okay, uh the facebook stock have not gone below the hundred the hundred dollar mark right. So it’s never going to go down. So you’ve got more confidence, but in synthetic indices, you’re going to see is just a computer generated market, so anything can happen now! Let me give you the tips that you need to profit in synthetic indices. Number one is start small and build up right, most people they go into the market and deposit a lot of money right! If you have money- okay, it’s okay to diversity, a lot of money, but if you don’t have the knowledge that is required, i don’t think this there’s any need of depositing a lot of money because you’re not going to make money.
This is not a magic? This is not an automated uh game. It’s not it’s not a magic trick, it’s something that most people are doing and there’s competition between me and you right, because you have to know that if you enter the forex market and you place a buy and i place a sale, there’s a chance that when you lose, i take the money or when i lose you taking the money, because the forex market is the is an offer, the counter market right, the brokers just connecting my trades to your trades to other people in the world, so so the traders that are making money they are making money because some traders are losing money. You have to understand that! So you have to know these things. You have to understand people, people say: okay, i’m not going to learn about forex trading. These people are lying to us, but i’m just gonna go into the market and do it myself? okay, you can do that, but i personally think that you need to know these things right. You if you don’t understand candlestick patterns, it simply means you cannot trade candlestick parents? Maybe when the time you sell the uh in the market, i see a candlestick pattern? That’s saying uh this uh press rejection, so i have to buy. Then i buy and i make money and you say the broker have manipulated the trade and they have lost money. But the truth is you didn’t understand what was happening in the market right? so what i’m saying is you have to learn first and start small and build up once you build there’s a lot of things that are going to build. They are going to build up your confidence you’re, going to build up your skills, you’re, going to build up your your chat, drawing uh skills, you’re, going to build up your risk management tools, discipline all those things that you need to become successful in forex trading, you’re going to do it once learning, and you doing it with your small accounts right number. Two is manage your money wisely right.
Your number one goal in the forex market, i’m always going to say that and traders had that even saving educators. Yet what i say here, managing your money is way way better than making your profits, because your job as a trader according to me, is to is to protect your capital if i deposit one thousand dollars in the market right now to trade for the next month. My number one job is to make sure that i don’t lose that one thousand dollars in the next month, i’m not focused on the profits. I’m focused on protecting that money and i know that if i, if i’m able to protect one thousand dollars until the end of this year, it’s not going to be in 1990. It’s not going to be 999 dollars. It’s it’s! if i, if i’m able to protect that money, that means at the end of the year it’s going to be 1200 1300, depending on what i do right! So most people will say.
Okay, i want to double my account in 24 hours! That’s cool! that’s what most people want, but i have never seen a business where my warm, where people can double their bank accounts in 24 hours, because if there was someone who can do that, that person would be the richest person in the world. If you teach me how to double 10 dollars today and do it again tomorrow, do it again day after tomorrow for 10 straight days, i would say you are you’re a genius right, but what happens is this is a game of probability so manage your money wisely right? i’m standing firm on that statement. Just manage your money wisely, don’t just say: i’m gonna win! i’m gonna win, i’m gonna win. Okay, i’m gonna protect my account right when you place your trade, the first you have to know when to exit before you start thinking about. When are you going to? how much are you going to make? where are you going to spa to place your stop loss so that if this trade doesn’t go where you want you’re going to exit and accepting that small loss, because you know that if you keep your losses, small, your wins big you’re going to blow up and make money right guys? let me tell you one secret right.
I don’t want to make this video very long, but let me tell you what cigarette i’ve i’m in a trading business and internet marketing on all those things most people for every 100 people, you market, to there’s an average of one to two people that buys from you. So how much work do you put to get 100 people and just get two sales think about how much work people are putting to get hundred people and getting two sales, but for you, as a forex trader, i don’t know how do you think you are special that you can just want to get into the market with twenty dollars and double it every day and make money? that’s not going to happen. You’re going of course, you’re going to lose, but what you want to make sure is you want to make your losses small once you see that the market is not doing what i want get out of that market and wait for the next trade once the market goes in your direction! Hold up that trade? don’t hurry to exit the trade, don’t say: oh the market is gonna reverse! oh, let me just take this five dollars no hold on up to uh, maybe one to two one: two, three one, two three one, two three risky to reward ratio. If you are risking one dollar make sure that when the market goes into way, you don’t exit that trade until you reach two dollars in profit, because what happens if you get 100 trades and you get 50 trades win and 50 trades loses your 50 wins should should uh make sure that it covers all the 50 losses and gives you a profit. That’s how you become a profitable, forex trader! Number three tip is: don’t let your emotions overwhelm, you don’t be afraid to enter the trade. If you see a setup just go under the trade right, because once you build the mind said that i’m gonna lose some and i’m gonna win some you you get over the thinking of what. If i lose this one right, because you know that you’re going to lose some and they’re going to win some! So it’s important to know that trading is the just a a way of it’s a game of probability right! The next tip is create a trading plan and follow it guys to be honest with you most people trade without plans. But for me the reason why i don’t give signals to my uh to people that i i work with in trading people that i help with trading is?
I know that those people can never follow my trading plan, because i cannot. I can go for one to two days without placing a trade, but some people they don’t want to go for 30 minutes!
Look whenever they look into the market! They don’t want to get out of the chats without placing a trade, and this is a huge, huge problem! We’re going to talk about that. If you want me to do a live video guys explaining talking about all those things, these things to you about the trading mindset, click um put the comment below right. So what you want to do is create a trading plan. If you don’t see any setup that is in your trading plan, don’t trade, it’s not a crime to go for a day without placing a trade. That’s why i say: if you’re a beginner, don’t try to trade full-time, don’t try to make a living from trading. Why? because you are going to be pressurized to place trades, because you want to end that money to pay your rent out right, but if you’re trading like it is a part-time trader, you can afford to make go for a day without placing a trade you can afford to just ignore the market for one or two days to refresh your mind and then you come back later after maybe three four days and place trades right then create um. The next thing is master technical analysis right, technical analysis.
If you want to trade, synthetic indices is one of the things that you need right, because technical analysis is simply everything about synthetic indices, because there’s no other way that you can analyze synthetic indices, which is not technical analysis because there’s no fundamentals, there’s no sentimentals, there’s only technical analysis right so master technical analysis so that you can be successful in trading synthetic indices right. So how do you master technical analysis? there’s a four-step framework, four-step process? you only need four steps to master technical analysis, because the problem that most traders do is they want to learn everything they want to learn, trend, lines, indicators, fibonacci tools, rectangles chat patterns, candlestick patterns, rsi, everything that is there to learn right.
There is a lot of information about technical analysis simply because people are inventing new ways? People are inventing new indicators. Programmers are just building indicators to help you in the forex market, but that that doesn’t mean that you have to learn everything, but what you need to do is master only four things, and these four things are simply and ex simply explained in this video popping up on the screen right now. I don’t know if this is this side or this side, and this video is going to show you the first step framework that you need, if you want to master technical analysis and start making money with synthetic indices, so go and watch that video right now, as i’m signing out and i’m gonna be seeing you in the next video, but let’s meet on that video as i’m explaining to you.
What is it that you need to master technical analysis? thank you. .