The 5 Types of retail trader. Which one are you?

This video describes the 5 types of retail trader. Are you the brokers favorite type or will you be successful?

The 5 Types of retail trader. Which one are you?

This video describes the 5 types of retail trader. Are you the brokers favorite type or will you be successful?

19 thoughts on “The 5 Types of retail trader. Which one are you?

  1. Hi Peter. Thanks for all the information you are sharing.
    I've few questions for you.

    At the end do you think that there is a possibility to succeed as a technical analysis retail trader or not?
    In another video you say that order flow shows works well, do you think that a retail trader that uses this technique makes better results?

    Anyway I've not meet yet any retail trader that lives happily from his work..
    The only one I know, that makes a living from it, is a friend of mine who has +10 years of experience and mistakes, and since 2 years have discovered what he calls the "cycles theory", which gives him precise entry and exit points. And he insists that I should join the party.

    What do you think about this theory?

  2. I think we can say type 5 would be for any business. Not just trading. If you aren't level 5 in any business you do, you'll fail

  3. 25% a month is fantasy trading? LOL. Im pulling 7-15% PER DAY. I must be some magician than. And I know people who pull even more than that.

  4. I've been almost all these types. But for some reason come back after learning something new.

  5. As an example of a type 2 trader I took this off a bulletin board of a UK stock I follow, I won't bore you with the details of the in's and outs of the particular stock, suffice to say I post this as a warning to all people who think it is easy to trade the markets:

    "lost 20k, but banked 8k on sale at least
    terrible, i will never trade again

    (name withheld)"

    Let's not even talk about risk management here, but I think we can agree this guy should not have attempted to trade until he'd understood the basics at the very least.

    His follow up message shines a light on his thinking:

    "At least my losses have come to an end and they can't get any worse for me, I see the price continuing to fall today and feel relived to be out with at least something.

    I was one of the hopefuls, I did believe, and hey maybe it will come right for those remaining, who knows, and I wish you luck.

    For me, well it's back to what I understand – that is working hard for my money."

  6. I enjoyed that vid it is true though, there is a certain mindset you must possess and dare I say it, street smart brain to understand what is needed to trade in the markets. I'd like to think I am type 5 but I have had some nasty 1 – 5% drawn downs when I've let my ego get in the way of what the market was telling me. Hopefully though, I have learned the lesson and will always listen when Mr Market speaks.

  7. I am working now on 100% mechanical price action software it it really opened my eyes how difficult it is to find something that works long term. Now I can back test last couple of years and see exactly how markets are behaving and how my method is behaving. Before that I was following PA gurus (e.g. Nial Fuller) who didn't have any track record and statistical validation. Everything seemed to make sense, it was a bit vague yet plausible, trying to convince you that sooner or later you will magically get "feel of the market" and start to make money. What a waste of time. And those people trying to convince you that their method can't be coded because of complexity. The reasons they say that is they are afraid it would expose randomness of results. They rely heavily on hindsight bias where "not right feel of the market" can be blamed. We have now software which can recognise face, fingerprints, voice yet somebody claims that something ridiculously simple like pinbar or insidebar at support/resistance level can't be coded. It makes me laugh and at the same time a bit angry because I know a lot of people will fall for it.

  8. Hey Peter, I just found your channel and would like to speak with you because I am looking for another mentor to teach me forex and would like to learn your strategies and how you trade. Can I please be your student?

  9. Hi Peter, I really like your videos. Your one of the very few people who talk sense about forex. I first came across your profile from an interview your did with Shaun Overton (another knowledgeable guy) shortly before you took a break from trading.
    Then today while doing some research on Viper (having a nasty drawdown at the moment) I saw your sceptical vid on his trading style, something I'm in full agreement with you by the way. As far as I'm concerned the Viper style 95% success rate is designed to draw in newbie copiers who expect to see a profit every day. There are plenty of those on mql5 website and they all seem to blow up eventually.

    Anyway, I was wondering whether your still trading or whether you intend to start again. One other thing, when researching a strategy do you go through past performance manually looking at charts or do you automate the proces?

  10. There are also traders swing trade based on they're ideas about what a company or commodity will do in the mid-term. Like buying 2017 call options for USO or RDS-A or AAPL. It makes sense you could even straddle these leaps and make some return as most of these developing shares have high mid term volatility (they don't stay stable for years on end). Do these types of traders lose money in your experience.

  11. Peter, what time frame would you say is best to trade. also how long are you typically in one?

  12. Hi Peter. Thanks for all of the great videos! I was looking for your site to sign up for the newsletter and got a 404 page not found. I noticed elsewhere that you might be taking a break from trading … are the newsletter / website on hold as well? Cheers and thanks again!

    p.s. in one of your videos you mentioned Malahide Castle … I recognized it immediately. We visited Ireland and Scotland in March to watch our daughter perform in the St Patty's parade in Dublin and stopped by Malahide … beautiful country there!

  13. That should be awake up call to retail traders,very true what you say Peter,lucky I did my own research before entering the world of trading,I heard a lot of horror stories from friends and as you say the market is very efficient now ,simple Maths would tell you that.I did myself a favour and got professional training from an ex chief dealer,it has helped me I can honestly say.One other thing I got a job working in an investment firm,that really opened my eyes,retail traders don't stand a chance unless they have some kind of back ground in similar field.

  14. Hey Peter, Merry Christmas and wish you truly Happy New Year, Athbhliain faoi mhaise duit…

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