There are two major myths when it comes to retail trading. The first is that it’s an easy way to make your fortune. The second is that no one ever makes any money. These two extremes both contain a nugget of truth. A tiny number of people do get very rich through smart trade execution. Others end up losing more than they can really afford. 

Both of these facts can make it seem like retail trading is nothing more than a casino. It’s a game of chance where the results are down to pure luck. In fact, there’s much more to it than that. Most retail traders have a success rate somewhere between those two extremes, and it’s possible to increase your chances of making money as you get more experienced. 

So why do people fail when it comes to retail trade execution, and what can you do to increase your chances of success? 

Have a Strategy 

Many people begin retail trading without any clear sense of what they’re doing or hope to achieve. As a result, they don’t develop a trading strategy. This dictates how and when you’ll enter, and exit trades and this strategy should be based on clear historical data. 

Retail trading is not something you can do half-heartedly. You need to know why you’re doing it and how you’re going to proceed. This will dictate how you behave in the market and help you to see beyond any temporary setbacks. Research is vital. The more information you have at your fingertips, the better your strategic decision making will be when it comes to trade execution. 

Don’t Risk More Than You Can Afford to Lose 

It’s easy, particularly in the early stages of trading, to get carried away by your successes. This can lead to traders risking more capital than they can realistically afford. Losses can lead to irrational decision making and a desire to recoup money through even more risky trade execution. This is nearly always a recipe for further losses. Keep your head, and be measured in the value of your trades. 


Be Careful of Biases 

We like to think we’re rational beings, but being human, all too often, unconscious biases slip into our decision making. This can particularly be the case where markets are concerned. A successful run of trades might lead you to think you’ve got some unique insight that means you can’t lose. 

Alternatively, your strategy might forecast making 30% in a year only for you to make 15%. As a result, you chase that missing 15% resulting in further losses. Every trade execution needs to be carefully and calmly considered. 

Trading Before You’re Ready and Quitting too Soon 

It takes time to learn the mechanics of trading and to develop a strategy. Therefore, it’s essential to spend some time reading, researching and using simulation platforms that can help you hone your trading skills. 

When you’re finally ready to trade, it’s also important to work through the early setbacks. Very few retail traders enjoy immediate success, but they can develop reasonably successful strategies and deploy the best execution in time. Staying the course is all-important. 

Cost-effective Trade Execution from GIS UK 

At Global Investment Strategy, our experienced team provides a low-latency, execution-only brokerage service for our retail trader clients. Our trading desk is open right across global trading hours, giving our clients a real-time market advantage. 

To learn more about our Global Investment Strategy services, call +44 (0)20 7048 9400 or email

Back to News