The advantage of the small trader is, you can take trades the real big players can not. With your 1-10 lots, you can hopp on every small breaktout, even on the 5m chart, and scalp a few ticks out of it. Cant do that if you try to move huge size, no matter which market. Thats one of the reasons why the small retail trader can achieve returns of >100%, which seems so hard to believe for many members here. Retail trading/ scalping is different from the huge money move operations the big institutions are doing.
Good Morning CALLumbus, I agree with you. Getting a few ticks alot times, is mentally better than getting alot of ticks less times.
Hello MacBookProHo, I agree with you on this. I always thought the goal of retail trading was to get to $1 Million dollars as fast as possible. Fast meaning 1 - 2 years.
Always made more sense to me. Like an insurance company, you collect the "premiums", many of them. Once in a while, an "insurance event" happens and you have to give back a bit. The challenge is to keep the losses from these rare events less than the cash that you collect regularly with your small scalps. It is no rocket science. With practice you get better, and after a while you are able to avoid most of that bad events that cost you money. But this is a very personal stuff. I feel better with a high win rate, and somewhat low reward/risk. Others dont care about the win rate but want the big winner once in a while. Both can be profitable. Risk reward ratios, win rates say absolutely nothing about the profitability of a trader/ system. Everything can work if you do it right.
Grab that money! “A bird in the hand is worth two in the bush.” “A live dog is better than a dead lion.”
Hello CALLumbus, Either way, takes ALOT of practice and effort. Especially scalping. Getting out of drawdown is the biggest challenge.