Independent trader vs Retail trader

Just want to understand what is the difference between this two terms? Watching WSW1, the Shatz trader introduce herself as an independent trader trading her own money. Isn't that being a retail trader?

The term independent trader sounds tons better than introducing yourself as a day trader or as a retail trader.

 

i always thought they were the same...i prefer the term 'commodities trader' myself

 

Is trading interest rate futures under the category of "commodities trader"?

"Commodities trader" term has that effect too.

 

definately in my book....i dont know why but when i tell the girls i am a commodities trader they inevitably ask what are commodities? i tell them gold, oil...index funds.....they seem impressed....thats good enough for me. when i tell them i trade my own account they seem doubly impressed. as you can tell for me its still all about getting laid

 

LOL. I need to learn the nuances of more products other than interest rates. Especially gold and ES.

 

lol...especially gold. that word alone can get me laid some nights. they dont have to know i only trade ES.

 

I'm gonna check out Gold.

You trade YG or GC or ZG?

 

Independent trader = profesional trader who trades his own money

Retail trader = amateur trader

 

I agree with this description.

'Indepenent trader' connotes a degree of autonomy, continuity & success.

A 'retail trader' is one who has a TD Ameritrade account & trades sometimes or puts in some orders before going to the office.

All striving traders deserve RESPECT, however.

Even the suckers

 

I'm just gonna copy & paste this read I found pretty interesting on a futures trading portal.

Rules of the Retail Trader, Oct 22 2008

Retail trader = any trader who is not trading for an institution, a.k.a. YOU!

Retail traders are food for professional and institutional traders everywhere. Eager traders enter the markets in large numbers, hoping to find the “Holy Grail” of trading. They take various paths, but in the end a staggering percentage of retail traders are left with heavy losses and broken spirits.

In the course of my ten years in the trading education field, one of my primary tasks has been to disengage my clients’ ingrained thought patterns. Here is a tongue-in-cheek list of “rules” followed by retail traders:

1. Do everything you possibly can to lose as much money as possible, in as little time as possible, and then blame someone else for your losses.

2. Since all analysts are completely clueless, avoid any and all information they may divulge. Ignore government reports and market research. The chart will tell you everything.

3. Pay as little as possible in commissions. Who needs little things like advice, market insight, risk management strategies, and a higher probability of profit from working with top brokers who make a living overcharging you? After all, if they could make a living from trading, why would they be brokers?

4. Technicals are the only way to trade; therefore search continually for the perfect mix of technical indicators. Ignore the fact that 90% of traders exclusively using technical indicators fail.

5. Trading success depends solely on the trading platform. It makes perfect sense to spend week upon week looking for the perfect trading platform.

6. Ignore in-depth strategy completely. If a market is going up, it will likely keep going up forever. After all, “the trend is your friend.” The chart is all that matters.

7. Trading education is for suckers. You’ll learn everything you need to know by losing tens of thousands of dollars in your trading account. The fact that educated traders tend to have a higher probability of success is meaningless. If you do decide to take a course, make sure its sole focus is on technical indicators, the answer to all successful trading.

8. If you only trade in one direction, you eliminate 50% of the risk of loss. What better way to protect yourself? Short selling is too complicated to be useful, so why bother?

9. Free information available on the Internet is pure gold! Why squander money working with a trading mentor who complicates your life with risk management strategies, trade strategy, not to mention silly goals like consistent profits?

10. Gamble freely with your profits. It’s house money; if you lose it, big deal.

This list is actually based on common misconceptions I hear from retail traders on a regular basis. I hope it shocks you into thinking “how many of those attitudes am I applying to my trading?” It should be obvious that thinking like a retail trader is not the best path for long-term trading success! Since how you perceive the market and your place in it is vital to your success over time, your primary task is to look at the market in the manner of professional and institutional traders.

From the outset, I always encourage all our clients to shift their mindsets from the retail mode to the mentality of a successful professional money manager. This simple shift in thought pattern can have a huge impact on your likelihood of success. Let’s compare the retail trader mindset to the professional money manager mindset to see which makes more sense for you.

Retail rule # 1: Do everything you possibly can to lose as much money as possible, in as little time possible, and then blame someone else for your losses.

Professional and institutional rule # 1: Capital preservation is the key to longevity. A trader cannot make money if he’s losing his shirt in the market. To be successful over the long term, a trader needs to be in the market for the long-term. Also, the trader striving to be successful must take full responsibility for all trading-related actions and decisions.

Professional and institutional traders understand that burning through an account, excessive trading, and chasing markets aren’t conducive to long-term success. Top traders consider a wide range of variables before entering any trade, and when they do enter, their trading structures focus on minimizing risk. By taking responsibility for their trading decisions, they are increasing their probability of profit. The equation for the successful professional is simple:

Thought → Plan → Action → Execution → Monitoring → Exit → Assessment

Retail rule #2: Since all analysts are completely clueless, avoid any and all information they may divulge. Ignore government reports and market research. The chart will tell you everything.

Professional and institutional rule #2: In any profession there are people at the top —usually with good reason. Then there are those who will never make it past midpoint or even the basement level. Your obligation to yourself as a professional trader is to search out the best analysts and work as closely as possible with them. Your job as a trader involves execution and risk management. These are the only activities that bring money into your account on a regular basis. Be informed about the markets you trade, but know that you may never be as informed as the top analysts you employ.

Retail traders tend to dismiss all analysts and news events as useless. Nothing could be further from the truth! Every field has a group of top performers, and trading is no exception. All top performing mutual fund, hedge fund, professional, and institutional traders employ analysts whose job is to provide a deeper understanding of the markets being traded.

Interview analysts to see if there is any potential for building a long-term, profitable working relationship.

Retail rule #3: Pay as little as possible in commissions. Who needs little things like advice, market insight, risk management strategies, and a higher probability of profit from top brokers who make their living overcharging you? After all, if they could make a living from trading, why would they be brokers?

Professional and institutional rule #3: Trading is a business, and like any other business, the total cost must be assessed before making any decision. If you’re after deep discounts from vendors going out of business, try going to a flea market. It’s pointless to spend time jumping over $100 bills to pick up pennies. If a broker is able to add significantly to your bottom line at the end of the year, then he is worth the added expense. Top brokers are often some of the best traders, analysts, and strategists in the industry. Hedge, pension, and private equity fund managers consult them; so should you.

Deep discount firms, who generate their revenue based on the level of activity in your account, have limited services and offer no value-added features. Another little-known fact is that these firms often promote discount trading to eliminate liability. They are interested in your trading volume, not your trading success. Think seriously of employing a leading broker/analyst to watch your account on a daily basis. Paying an experienced professional a fair price is a worthwhile expense as you accumulate more of those $100 bills.

Retail rule #4: Technicals are the only way to trade; therefore search continually for the perfect mix of technical indicators. Ignore the fact that 90% of traders who exclusively use technical indicators fail.

Professional and institutional rule #4: Although technical analysis is a valuable tool, decisions based exclusively on technicals are not often wise trading decisions. Novice traders spend huge blocks of time looking for the magic technical indicator formula that will unlock the secrets of trading. Professional and institutional traders know profitable trading involves assessing a market which includes technicals, developing a strategy, execution, and finally, exiting. The cycle is never-ending. Cutting corners by solely using indicators or chart formations leads to BIG LOSSES! You need a systematic approach if you intend to be trading for any length of time.

Here is a fact that marketers of trading systems and indicators do not want you to know: no system, indicator or groups of indicators have been proven to possess the ability to predict market direction with any degree of accuracy.

All professional and institutional traders know that trading success comes the old-fashion way — from hard work, training, dedication, and education.

Retail rule #5: Trading success depends entirely on the trading platform. It makes perfect sense to spend week upon week looking for the perfect trading platform.

Professional and institutional rule #5: Even though platforms are great tools, life was fine before they became prominent. Profits were still being made before computers were in wide spread use. Like the case with technical indicators, too many novice traders think a platform will help make them better traders. It won’t. You either know what you’re doing or you don’t. Spend your time becoming a better trader.

Platforms are fantastic and make some trading decisions easier, but the answer to the question of success will not be found on a computer screen. Instead, try looking in the mirror to begin your search.