Brandon Wendell, CMT
Brandon Wendell
One of the core pieces of Online Trading Academy’s Core Strategy is to help traders succeed by trading in the same manner and direction as the large trading institutions. Many people have questioned the ability of being able to know where these buying or selling points lie; that is until they learn the strategy and see it working for themselves.
Many people even doubt that these large trading institutions exist. We commonly think that the large banks solely engage in businesses like managing client accounts and thrive on commissions. The truth is that trading activity constitutes either a large portion or even the majority of their profits. Need proof? Well, these large institutions are publicly traded companies so one only needs to view their annual reports to see where their profits really come from.
Bank of America, for instance, made 13 billion dollars from their investment and brokerage services but over six billion from their trading activities.
Morgan Stanley’s largest income producer was in fact their trading at over $9 billion. This easily dwarfed their moneys received from investment banking or commissions.
JP Morgan Chase is known as a banking center and a brokerage, but they also made over $284 million from their trading activities.
If you have ever been involved in trading the US equity markets, you should be aware of market making activity. If you do not know what this is, you definitely need to educate yourself before risking any more money in the markets themselves. Market makers create liquidity in the equity markets by buying and selling securities for themselves and their clients. But they are also able to manipulate prices in the markets. This leads to losses from the uneducated traders who still commit money to the markets.
One of these big market makers is Goldman Sachs. We know them as an investment banking company, but as you can see from their financial information, they made over $9.5 billion last year in market making activity. This is trading!
If you think that I am just trying to promulgate an “us against them argument”, let’s check out the facts. There are scores of data points that show that the big institutions are more interested in profits for themselves than helping you secure your financial future. In fact, trading activity for these institutions has become much more profitable.
Neither Freedom Management Partners nor any of its personnel are registered broker-dealers or investment advisers. I will mention that I consider certain securities or positions to be good candidates for the types of strategies we are discussing or illustrating. Because I consider the securities or positions appropriate to the discussion or for illustration purposes does not mean that I am telling you to trade the strategies or securities. Keep in mind that we are not providing you with recommendations or personalized advice about your trading activities. The information we are providing is not tailored to any individual. Any mention of a particular security is not a recommendation to buy, sell, or hold that or any other security or a suggestion that it is suitable for any specific person. Keep in mind that all trading involves a risk of loss, and this will always be the situation, regardless of whether we are discussing strategies that are intended to limit risk. Also, Freedom Management Partners’ personnel are not subject to trading restrictions. I and others at Freedom Management Partners could have a position in a security or initiate a position in a security at any time.
Editors’ Picks
EUR/USD moves sideways below 1.1800 on Christmas Eve
EUR/USD struggles to find direction and trades in a narrow channel below 1.1800 after posting gains for two consecutive days. Bond and stock markets in the US will open at the usual time and close early on Christmas Eve, allowing the trading action to remain subdued.
GBP/USD keeps range around 1.3500 amid quiet markets
GBP/USD keeps its range trade intact at around 1.3500 on Wednesday. The Pound Sterling holds the upper hand over the US Dollar amid pre-Christmas light trading as traders move to the sidelines heading into the holiday season.
USD/JPY corrects further to near 155.80, gives up entire BoJ policy-led gains
USD/JPY surrenders its entire gains made on the BoJ policy announcement day, and retraces to near 155.80. Investors are in vogue over the outlook of the BoJ’s monetary tightening campaign. The Fed is expected to cut interest rates by at least 50 bps next year.
Editors’ Picks
EUR/USD Price Annual Forecast: Growth to displace central banks from the limelight in 2026 Premium
What a year! Donald Trump’s return to the United States (US) Presidency was no doubt what led financial markets throughout 2025. His not-always-unexpected or surprising decisions shaped investors’ sentiment, or better said, unprecedented uncertainty.
Gold Price Annual Forecast: 2026 could see new record-highs but a 2025-like rally is unlikely Premium
Gold hit multiple new record highs throughout 2025. Trade-war fears, geopolitical instability and monetary easing in major economies were the main drivers behind Gold’s rally.
GBP/USD Price Annual Forecast: Will 2026 be another bullish year for Pound Sterling? Premium
Having wrapped up 2025 on a positive note, the Pound Sterling (GBP) eyes another meaningful and upbeat year against the US Dollar (USD) at the start of 2026.
US Dollar Price Annual Forecast: 2026 set to be a year of transition, not capitulation Premium
The US Dollar (USD) enters the new year at a crossroads. After several years of sustained strength driven by US growth outperformance, aggressive Federal Reserve (Fed) tightening, and recurrent episodes of global risk aversion, the conditions that underpinned broad-based USD appreciation are beginning to erode, but not collapse.
Bitcoin Price Annual Forecast: BTC holds long-term bullish structure heading into 2026
Bitcoin (BTC) is wrapping up 2025 as one of its most eventful years, defined by unprecedented institutional participation, major regulatory developments, and extreme price volatility.
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