In the journey of investing and trading, many investors have paid a high price due to a lack of solid knowledge and the absence of a clear trading system. A typical story is that of a friend of mine, who invested a large sum in the forex market without understanding the basic elements like technical analysis, market structure, or trend identification. He often entered trades based on gut feelings, without a clear plan, and as a result, his account was quickly wiped out after a series of wrong decisions. Another story is that of a well-known investor who faced significant losses because he didn’t understand the importance of risk management and setting stop-loss orders. While his market analysis was accurate, the lack of a clear trading system and discipline in managing risk led to a complete loss of capital due to an unexpected market reversal. These mistakes are not rare in the trading world, and they serve as costly lessons about the lack of preparation and a solid trading system.
These stories are far from uncommon in the investment world. Therefore, equipping oneself with a strong trading system and understanding how the market operates is crucial. After experiencing failures and learning from the market, I sought a more systematic and structured approach to trading in order to avoid unnecessary mistakes—Smart Money Concepts (SMC). This method not only helps me understand the market but also allows me to follow in the footsteps of the big players, those who truly control the flow of financial markets.
SMC is not a “magic bullet” trading method, but it has helped me reduce risk and improve trading effectiveness. The cryptocurrency market, with its low liquidity and high volatility, demands a clear strategy. Using SMC allows me to identify key signals left by large players, enabling me to make more accurate trading decisions, rather than relying on gut feelings or guesswork.
One of the key aspects of applying SMC in cryptocurrency trading is understanding market structure. I have learned to recognize trends—whether bullish, bearish, or sideways—so I can better understand the “waves” of the market and find suitable trading opportunities. Identifying Order Blocks and Fair Value Gaps (FVG) is also essential in pinpointing price levels where large money flows are entering. These price zones present excellent opportunities for executing trades and avoiding mistakes during volatile market movements.
Moreover, understanding liquidity and Stop Hunts in the cryptocurrency market is another crucial factor. The crypto market often experiences sudden reversals aimed at “hunting” stop-loss orders from traders. Knowing how this mechanism works helps me better prepare for strong market movements and take advantage of the opportunities these reversals create.
The most important principle when trading with SMC is patience. In the cryptocurrency market, having a clear strategy and waiting for the right signals is key to success. I no longer have to scramble with vague predictions or make decisions without basis. Instead, I simply follow the tracks left by big money, which SMC helps me do with precision.
With SMC, I no longer need to guess or gamble on the market. This method helps me follow clear signs left by the big players, thereby minimizing risk and increasing the likelihood of success in cryptocurrency trading. Trading is no longer a game of chance but a process of control and careful management, and SMC is the tool that helps me achieve that.