Yes you’re a retail trader, but that doesn’t mean you have to trade like one. The big players, financial institutions make a living off the retail trader – so change teams and trade like they do. Forget that the dollar amount in your account is no where near the size of the theirs and make your trading decision based on the same criteria as they do. What this means is that rather than jump into existing trends long after they’ve started, have the patience and strategies to wait for the trend to end and then look for the reversal. Depending on your strategy and the time-frames you’re trading on, either you can trade the retracement after a reversal signal, or have the real patience and discipline to wait for the retracement to run it’s course and then use your strategy to rejoin the original trend. These both require an understanding of supply and demand and how to recognize these areas – and this can be learned. But just jumping in when a resistance or support level has been broken, the breakout strategy, and then watching your trade immediately reverse is a common mistake made by the majority of retail traders.
FXtrademark: Trade like you own it!
