What Is A Retail Trader In Forex Trading? - YouTube

hi there manuel here and today i want to talk  about um retail traders i actually want to talk  

about what is a retail trader and sort of the  difference between a retail trader and what we  

do which is called smart money it's kind of smart  money trading we trade or we try to identify what  

the banks are doing and then ride the coattails  of the banks you know so in essence though  

let's be honest we are all retail traders the  only people that have enough money to move a  

market to actually force the market to move in  whichever direction they want it to move are  

banks or super super rich traders you know like i  don't know elon musk or warren buffett those sort  

of people that can put millions into a market  and make it move in the direction they want to  

most of us know we've got to kind of just follow  the direct hopefully we guess it right and we  

follow the direction that the market's already  moving in you know that's more what a retail  

trader does it's a more of a small trader you know  i mean to get a market to do this sort of a move  

this big move down like that that's banks pushing  money into that selling the price off or you know  

or like i said a really really rich trader that's  millions this cos this is millions and millions of  

dollars being pumped into this to push this price  down your everyday trader isn't going to have that  

you know your everyday trader is trading in i  don't know 10 10 pound a point maybe fifty ten  

dollars a point maybe fifty dollars a point you  know they're not trading in two million dollars or  

three million dollars a point you know so that's  that's big that's retail i mean that's um banks  

doing stuff like that but a retail trader so the  definition for me of a retail trader it's usually  

a person that follows certain patterns i'm going  to show you all the patterns that you're usually  

taught when you first come into this it's usually  also a person that stays on one time frame i'm  

going to tell you about myself when i first got  into trading and i done i done a course with my  

sister that actually cost me a lot of money  actually ended up costing us 30 000 pounds  

which is forty thousand dollars and it taught  us all these patterns you know i'll show you  

the patterns in a second and you know and that's  what most people do when they get involved in this  

so retail trader follows all these patterns they  trade off all these patterns support resistance um  

highs and low i mean double tops double bottoms  all this sort of stuff consolidation you know  

like that this sort of stuff when it next touches  the tops you you sell when it touches the bottom  

you buy you know all these sorts of things and  they usually stay on one time frame like we were  

we were talk to to trade off the daily time  frame and we were what we call position trading  

so we'll get a trade and you'd probably hold  it you'd hold it for a week two to three weeks  

and another thing with the retail trader is  your risk to rewards are usually quite small  

you know what we were taught say for example  we were taught like say let me just put this  

on here say i was going to sell this so  short position so i was going to sell this

you know say this there's something something  something like that so i was going to sell there  

my stop loss would be there so that's the amount  and i would want it to go to there something like  

that but i'd be waiting i don't know a week maybe  two weeks if i'm lucky to get a one to three yeah  

so you can see not saying it doesn't  work you can see it's quite slow  

now and usually they only stay on one  time frame you know and another thing  

with a retail trader usually they don't  spend any time at all on their mindset  

you know when they get a trade they live or  die by each and every trade so they get a  

trade right and they're kind of doing the dance  and they're like yes i'm a trader i'm gonna make  

my lamborghini i'm ready i'm gonna buy my house  i'm gonna go and live in miami or whatever it is  

and when they lose a trade they're like oh my  god you know i'm not getting it right where am i  

going wrong where am i going wrong they spend zero  time on their mindset there's a zero time thinking  

that you know this is this is a it's a long term  strategy thing it's not win one trade and you and  

you become a millionaire sort of thing so you need  to also spend time on your mindset you know which  

most retail traders don't they they they live and  die by their trades and when they get a few trades  

wrong they're either thinking right i'm ready  to give this up or they're looking for the next  

the next um program the next person over there  that told them that they win all of their trades  

so that's really my definition of a retail  trader they usually stay on one time frame  

i'm gonna move this to four hour they usually  stay on one time frame they trade off these pa  

certain patterns i'm going to show you and they  spend zero time on their mindset so when you get  

into trading really as a retail trader you're  usually given all these patterns here let me  

go through all of them so here we go we've got oh  that's too big there we go we got the double tops  

you know something like that i don't know if i  can show you on the chart but say it would be  

something along this lines there's something one  sort of two this kind of there's not it's not as  

equal as it as it is on this chart but something  along those lines head and shoulders yeah so like  

that's what you say head and shoulders you buy on  this line what they call the neckline rising wedge  

or flag sometimes it's called price titans up  and then you you expect price to go down double  

double buttons just like the double  tops again hits double times comes up  

head and shoulders the other way falling  wedge flag going down expecting price to go up  

continuation patterns these these wedges again  

goes down goes up bullish patterns head and  shoulde you know like this pattern i showed you  

on the chart this one is very very clear this time  this here boom expecting it to blast out one way  

with this one you know they say it's  come up go sideways and then continues up  

bullish pennant all this sort of stuff  wedges penance descending triangles all  

this sort of stuff these are the patterns  that you're gonna go you go on to the chart  

you look for these patterns and as well as  that you usually as a retail trader also have  

indicators let me show you my other charts this  is what the charts look like when i used to trade  

you have this in all i mean you can barely see  the price here it's just so messy you know um  

and it's just it's just horrible to look at you  know what i mean and usually with indicators  

here's the thing indicators are usually lagging so  what that means is that once the price has already  

moved and the indicator is telling you yeah yeah  get ready now because it's about to get ready now  

because it's about to move but it's gone the price  has already gone it's too late it's all gone yeah  

so you know that's tonight that's another thing  about about retail trading you know so but does it  

work does retail trading work well yeah of course  it has to think of a casino imagine you went into  

a casino and every single time you went into  the casino you lost eventually you wouldn't go  

but here's the thing what they say is they have to  give you one win out of six one win out of six is  

enough to keep you going to keep you in the game  you know that's even in gambling as well roulette  

all of this sort of stuff you need one win at  six so you could lose five of your trades and as  

long as you get one even if it's a small win that  doesn't cancel out all your losses that's enough  

to keep the juices going to keep you getting back  on and continuing to lose your money you know  

and another thing is that one win is usually  quite a small win compared to all the losses  

that you have do you mean because like i said i  mean like i showed you one to three would have  

to be waiting two weeks to do that you know when  you start to learn this stuff properly and start  

to see things like i've showed you in my other  in my other videos and you start to see the way  

that the banks trade because they have to leave a  footprint and then you start to follow the bank so  

you become what we call you know a smart money  trader and you bought and you catch moves like  

this this is a one two i don't even know what this  is one to let's see if we if we caught this move  

let me just have a quick look here and let me show  you uh short position yeah just imagine we caught  

this move here so now instead of catching a one  to three we call we call even just up to there  

that's a one to eight and that happened in this  is four hours this happens in less than two days  

all right so you can see the difference when you  start to see the smart money concepts and start  

to understand them you start to see the difference  and you can start to kind of make these risks to  

rewards this is like what i'm saying the people  that i trade with some of them make one to five  

you know 10 in a day some one to ten some one to  forty in a day in one trade risking two percent  

of your account to make these sorts of returns  do you know what i mean and they're not over  

leveraging what by that i mean they're not they're  not like risking tons and tons of their money all  

this sort of money there to make these little  these little um moves two percent of the account  

but if you catch it at the right place and you  know what you're doing smart money concepts  

you can make these sorts of returns you know  so i hope you understand the difference then  

the difference between the retail trader who  stays on one time frame usually as well you  

know with smart money you fish about you go  to different time frames you try and find the  

best looking candles the best looking you know  moves that gives you the most risk to reward  

another thing they use tons of indicators you  know they put indicators all over the charts  

hardly sometimes you can't even see the price  action smart money a lot of the time it's just raw  

trading it's what is you can see the patterns you  know it's the directions that the banks are taking  

things you know another thing they had they spend  zero time on their mindset very very important in  

fact 90 of the best traders in the world it's  not even about their strategy it's about their  

mindsets about knowing they know even when they  have a loser it doesn't matter we've never had the  

winner they're not like you know suddenly thinking  about the lamborghinis they're gonna buy you know  

same emotions they're almost like robotic traders  and in fact when you get really really good at  

trading it's actually quite boring to be honest do  you mean you don't get the buzzers you don't get  

the highs and the lows you know they're a retail  trade that does you know so anyway listen i hope  

you got some value from this i hope this helped  you you know a little a little bit if you do  

want to get see the exact way that we trade to get  these sorts of risks to rewards to do smart money  

trading and and follow the coattails of the banks  with the banker strategy then i am going to be  

offering you a free week where you can train with  us completely for free it starts on monday 12 12  

p.m eastern standard time which is five o'clock um  gmt uk time just completely for free all you need  

to do if you're interested in that you hit the  link below once you've opted in you'll get the  

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you get a whole week to actually look at it and  think is this for me or not and if it is for you  

you can continue on if not you know you're going  to learn some gems in that week anyways you know  

but anyway listen i hope you got some value from  this if you did take a second to give it a thumbs  

up also share it with anyone you think might get  value from it as well if you've got questions  

please just leave it in the comments box  below all right again thanks for listening  

till next time take care i'll  speak to you soon all the best

take

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