Ok guys. I know most of you already know that there are big and I mean very big players in the market whose every click to enter or exit a trade can sent price volatility through the floor or through the roof.
Nevertheless, I feel compelled to show you guys this video that was recorded on Bloomberg on how markets are “manipulated” and which makes retail traders basically at the mercy of the big boys.
If you have watched the video, you would realise that hey, this whole thing is being manipulated by program traders that trade huge volume within milliseconds. So, how can I as a retail trader ever win?
The thing is that these programs do not just take any trades, they are also guided by certain parameters and indicators and that they are made by other humans like you and me. The only difference is that they have much more resources to do this kinda thing and of course a mega capital base to back that up.
So, as a retail trader, always try to be on the side of the big boys. In other words, follow the trend. A trend set in motion will take huge amounts of force to turn it around. Hence, you have to be observant and look at the chart and ask yourself, “Is this trend continuing, consolidating or correcting?” From there you decide the risk management strategy that you would like to employ. With a stop loss in place, there is so much that the big biys can do to you and you still have capital to continue trading.
So, do not be afraid. Follow the big boys, deploy your strategy and stick to your rules. The big boys can only do so much as you allow them to do if and I say again ONLY if you are able to put a stop loss and manage your risk.
Try your very best to follow the big boys and when the big boys change course and you are on the opposite side of the trade, limit your loses.
~ Ardy Ismail
Singapore Forex Blog