I disagree, but I will not ague that point. The biggest issue that retail traders face is themselves, and their failings being reflected in the way they trade. It is not market manipulation etc. Take any system that has positive expectancy, and then put someone who is market ignorant, or has unresolved psychological issues to trade it, and they will fail.
If you have a billion dollars, and you trade only 2%, it is only 20 million. At 20 mio, you may not even have to Iceberg your order, 20 mio is the type of liquidity that gets sucked up pretty fast, and even if you do Iceberg it, you are talking 5 mio a pop anyway, obviously only 4 trades need to go off.
So the Big guys are not as agile really does not hold water. At any rate I have said my piece for now.
Yes the retail trader is in strong disadvantage because he have to master strategy + risk management + psychology. Even if one of these 3 fail then its game over, there is no shortcuts. But if one trader can master these 3 prieces, then its powerful.
You are right, 20 million is not the problem but hedge funds are not making 4% profit in a day if currency pair moves lets say 40 pips because they either use wide stops or no stops at all and just hedge their position in option market if need it. But for retail trader who executes a trade with lets say 20 pip stop loss and get 40 pip profit, he have made 4% profit that day.
the trick is to try trading with the banks and institutions. A lot of the stuff we read online about how to trade i feel is used against us retail traders a lot
I depends on your strategy, so the best answer I can give you is, take your strategy and test it with different stop losses if you have no idea where to put it. For example backtest the strategy and write down the winners and losses in excel sheet with maximum drawdown of your winning traders. Then you can adjust the stop loss in excel sheet and you see how many trades you loose and how many you win with x stop loss. This way you can find an optimal stop loss for your strategy.
Hey T, yes I agree that short term 20-40 pips on some days is possible, but the probabilities that it can be done 10 times in a row with no losses is extreeeeeeeemly low. I have made 40-60 pips in minutes, but is it generally rare, and certainly not very common.
this is something I’m going to master. I just know it’s very important to focus on the high probability areas of support and resistance/supply & demand zones
By looking at clues of manipulation, trade with strong handed traders and if you can learn how to understand fundamentals / other markets that can indicate is your market overprices or underprices compared to other markets that have correlation.
Thank you for taking the time in advance to assist us newbies. What platform do you prefer? What do you deem as the best times to trade? Do you agree with trading with lower volume currencies? Just a few questions. I’m also still a bit confused with the lot sizes.
I apologize, I meant lower price action (I forgot volume can’t be tracked). I’m still new and I am practicing paper trading but since the market is 24 hours, I’m am just a bit lost on when to trade. I understand each currency has different opening and closing hours for their market but i’m trying to figure what times would be recommended to try the most.
Yes, That’s what it is VOLATILITY !! Is it better to trade during lower volatitlity? I watched all six of the videos you made and they were very informational on finding good entries and exits. AWESOME!!!
Well it depends on what kind of trader you are, in high volatility there is more stophunts but if you use stophunts to find trades then its great to trade during high volatility times but on the other hand when volatility is lower you will get stoped out less often. I just use wider stops when the volatility is higher.
Great to hear that you like the video series
This is suprising as you can’t inforce an NDA which is based on public knowledge, and in fairness after looking at your vidoes (briefly) what you were showing was no secret or ‘new’ skill - no disrespect intended of course.
I’d certainly go back to them and ask them to explicitly list what you can and can’t do…
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