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Emotion in Forex trading

Allan (Arcferreira)
Jan 02 2019 at 10:48
50 Posts
There is a big difference between a retail trader and a hedge fund trader. This difference is called market depht. A small retail trader can open a 1 lot trade and ihe will not be noticed by market, because 1 lot is nothing. But a hedge fund can't open 10.000 lots in just one trade. This trade will cause a huge move in market, and his order will be filled in different levels. The other difference is the acceptable volatility. For a retail trader, 25% drawdown is acceptable. For a hedge fund, less than 10%.

Different things... A retail can trade for 10% monthly, an hedge fund for 3%.


Trade safely... Remember, a high Drawdown means a high risk!
vontogr (togr)
Jan 02 2019 at 10:50
4862 Posts
Arcferreira posted:
There is a big difference between a retail trader and a hedge fund trader. This difference is called market depht. A small retail trader can open a 1 lot trade and ihe will not be noticed by market, because 1 lot is nothing. But a hedge fund can't open 10.000 lots in just one trade. This trade will cause a huge move in market, and his order will be filled in different levels. The other difference is the acceptable volatility. For a retail trader, 25% drawdown is acceptable. For a hedge fund, less than 10%.

Different things... A retail can trade for 10% monthly, an hedge fund for 3%.



That does not happen often
https://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7862246/How-a-broker-spent-520m-in-a-drunken-stupor-and-moved-the-global-oil-price.html

Allan (Arcferreira)
Jan 03 2019 at 08:53
50 Posts
togr posted:
Arcferreira posted:
There is a big difference between a retail trader and a hedge fund trader. This difference is called market depht. A small retail trader can open a 1 lot trade and ihe will not be noticed by market, because 1 lot is nothing. But a hedge fund can't open 10.000 lots in just one trade. This trade will cause a huge move in market, and his order will be filled in different levels. The other difference is the acceptable volatility. For a retail trader, 25% drawdown is acceptable. For a hedge fund, less than 10%.

Different things... A retail can trade for 10% monthly, an hedge fund for 3%.



That does not happen often
https://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7862246/How-a-broker-spent-520m-in-a-drunken-stupor-and-moved-the-global-oil-price.html


Yes, near 1/2 billion caused a destruction in oil market...

Trade safely... Remember, a high Drawdown means a high risk!
AniLorak
Jan 10 2019 at 05:48
920 Posts
Arcferreira posted:
There is a big difference between a retail trader and a hedge fund trader. This difference is called market depht. A small retail trader can open a 1 lot trade and ihe will not be noticed by market, because 1 lot is nothing. But a hedge fund can't open 10.000 lots in just one trade. This trade will cause a huge move in market, and his order will be filled in different levels. The other difference is the acceptable volatility. For a retail trader, 25% drawdown is acceptable. For a hedge fund, less than 10%.

Different things... A retail can trade for 10% monthly, an hedge fund for 3%.



Got your point; but there have so many traders who started their trading career as a retail trader but now they are the institutional payers!

NascarLover
Jan 11 2019 at 11:04
8 Posts
I don't know of ANY retail trader who went into institutional trading. Never heard or seen of anyone do that. Bank traders come straight out of college and then start trading. Retail traders are usually older and already have a day job

kieran (snapdragon1970)
Jan 11 2019 at 14:12
1945 Posts
NascarLover posted:
I don't know of ANY retail trader who went into institutional trading. Never heard or seen of anyone do that. Bank traders come straight out of college and then start trading. Retail traders are usually older and already have a day job

I was a retail trader before I got a job as a professional ,I know a few guys who started that way plus its good in an interview.

"They mistook leverage with genius".
Adribaasmet
Jan 13 2019 at 07:42
951 Posts
NascarLover posted:
I don't know of ANY retail trader who went into institutional trading. Never heard or seen of anyone do that. Bank traders come straight out of college and then start trading. Retail traders are usually older and already have a day job


It’s not common case mate! But I believe it’s possible! The sky has no limit.

Imamul
Jan 15 2019 at 11:21
624 Posts
Greed and emotions almost same. Generally beginners attacked by this common human nature. We can control this by proper trading practice as well great discipline.

Tcollinwood
Jan 15 2019 at 11:55
11 Posts
I think that it helps to start with a very small Lot size and then increase the amount very slowly (I am talking about the period of a year at least going from 0.01 to 0.1). I think that this helps control emotions and get used to trading with real money

jamesgwyther
Jan 16 2019 at 11:00
289 Posts
Emotions are everything in trading, emotions and mind set.

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