Retail technical traders are now competing with the trading algorithms, trading computers and high frequency traders that have an immense advantage over normal retail traders. The game has effectively changed.
Therefore, one must adapt to avoid being the KFC fried chicken in the hot oil.
I have question.
Have you ever played an Android game against a computer or algorithm or virtual opponent?
Quite often, the game is pretty fair for a while until the algorithm has gathered enough information or statistics about you then began to predict your next move before you even moved a finger.
Well, the algorithm has an edge from that point onward, and can slap you with many losses in a row.
Have I already said that those are my opinions? Alright, good!
Though, scalping, day and swing trading are different games, there are similarities.
My view is that many technical traders have been losing unnecessarily just because scalping and day plus swing trading become too fast and a little bit unfair.
The main problems are short term price fluctuations, inadequate stop losses and less time to hold positions. In many cases, competent technical traders who have made the right calls end up losing because their stops have been taken out too fast and too soon.
Would you agree? Have you noticed that sometimes after going away from the computers, you come back, and see that the price has done exactly what it is supposed to be doing few days earlier?
In that instance, one does not have enough time to hold on or carry on and the stop loss is taken out.
In other cases, it is just, one is not yet able to achieve consistent winning trades.
Yep, we can not just blame everybody except ourselves. That would not help.
Those that are still learning to trade can keep it up even though they are the most vulnerable market players in that atmosphere.
Another challenge that retail technical traders are facing is the lack of enough trading fund. Though, the quantity of cash one has in the trading account is not the most important thing, it does help competent traders in many cases.
Contrary to the retail traders, market players that are using trading algorithms and trading computers have more liquidity apart from their unfair advantage of high speed trading tools.
So all in all, that is the state of most technical traders in comparison to the speed new market players. Indeed, the financial markets trading landscape and atmosphere have changed and no one can deny it.
