DislikedI see all trades as a "risk", I like more the word probability but anyways. So if somebody sees a bigger "risk" I would consider that person a newbie. I see a pro as somebody that sees risk (probability) or no trade anything beyond that is IMHO lack of experience.
And the guy that kicks himself after the fact for not taking a trade or not making public a call is a gambler still not ready to be consistent or even trade at all.
I see it a little different.
First big institutions have problems to get in the market. And once they...Ignored
I like more the word probability but anyways...Probability of what if I may ask?
So if somebody sees a bigger "risk" I would consider that person a newbie. I see a pro as somebody that sees risk (probability) or no trade anything beyond that is IMHO lack of experience.
The "bigger risk" is on the heart-mind side and is certainly in the perception of the trader making live calls or managing OPM, so more experience, confidence etc. may be needed there to make that transition. The risk is not from their perception of the market or the trade itself. To say they are a newbie...not necessarily so...mho. Psychology affects everybody, even the pros. Some of these "pros" actually puke...literally...on their trading desk as they "learn/gain experience" to manage the big bucks. They puke because they are trying to stomach much larger fluctuations or losses while in the trade. For example, if you have a $1M dollar position on Eur-Usd, 1 pip = $100 US. 20 pips down is $2,000.00. What if they are position trading...holding the trade for much longer...with a few million dollars on the line...that "risk" could be staggering to a "pro".
First big institutions have problems to get in the market. And once they are in, they have a problems to get out.
That's for sure because of the size of the positions. Agreed.
About the relative "small" percentage big institutions make in comparison to retail traders, I believe it is due to the fact that retailers lie and get away with it. Institutions can also lie, but they get cot shortly after, because they are accountable to their costumers.
Can't go there with you on that one. Some may lie as with everything else, but I know first-hand of some results that you may not even believe. You must have really encountered some unscrupulous retail traders around some of these forums.
But, it's all good .
FX4