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Re: Death of Discretionary Traders??
Big institutions use highly sophisticated automated programs for their trading; they have the best and fastest connections to the markets; they have the best trading platforms. All this makes it nearly impossible for a private trader to compete with them on the same ground. Basically, if you go for the automated stuff, you'll always be one step behind the institutionals.
However, I do believe private traders have a big edge over institutionals. This edge is CAPITAL and being able to liquidate positions at any given time with almost zero slippage.
Discretionary trading is the way to go if you want to compete against those monster funds, banks, bots, whatever you wanna call them.
You have to be good at it, but you can do it. And things will likely improve in the future because there will be more participants bringing more liquidity.
Last but not least, markets will always be driven by fundamentals. Although there is an increasing tendency to automize everything, there will always be the need for human flexibility and interpretation of market conditions.
IS
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