How Retail Traders Gain Strategy Advantage

Have you taken the time to identify who you are trading against?

Do you have clear understanding for their strengths and weaknesses?

Have you examined your own strengths and weaknesses as a retail trader?

Working through these tasks will reward you with great clarity for how to gain a Strategy Advantage. Here are the basics to get you started:

  • Institutions control the trend because they have the deep pockets required to sit through moderate volatility and are hedged to protect against severe price drops.
    • Retail traders are not likely to have the capital or the stomach (especially if they are trading futures) to sit through moderate volatility. They cannot be expected to have the staying power required to trade the trend successfully over the long-term.
  • High Frequency Traders control the tick; 1 increment price movements. Their proprietary platforms and high speed networks can execute over 1000 trades per second.
    • Retail traders are not likely to have access to, or the capital and expertise required to construct and maintain high speed platforms and networks. They cannot expect to succeed trading for a tick.
  • Fair Value Traders benefit from generational knowledge and years of their own trading experience to trade price deviations effectively.
    • Retail traders can expect to be well behind the learning curve attempting to trade Fair Value.
  • Retail Traders, by trading without a Strategic Advantage provide much of the capital feeding the Smart Money (successful Retail Traders).

If you would like greater detail then go here and watch the free video Strategy Advantage and How to Get It.

You will learn the strategy that places the strengths of a retail trader against the weaknesses of institutional, high frequency, fair value, and other retail traders; how to construct the intelligence package to execute; and what is required to support practical application.