What Institutional Traders Know That Retail Doesn’t (And How You Can Catch Up)

Do you know that over 90% of retail traders lose money, while Wall Street institutions remain profitable year after year? This raises a question: what do they know that you don’t? 

In this article, we’ll explore the key differences between institutional and retail traders and examine the reasons behind their continued success. Later, we’ll introduce you to a relatively new trade automation bot called AlgosOne, which is helping retail traders become profitable just like institutional traders.

What is the Difference Between Retail Traders & Institutional Traders?

The majority of traders in the stock market, like you and I, are referred to as retail traders. They are individuals who trade using their accounts after signing up with a broker, such as eToro or Robinhood. Retail traders typically have a capital of less than $50,000 and generally trade part-time. 

On the other hand, institutional traders are employees of large financial institutions. They manage billions in assets and collaborate with professional teams of analysts, quants, and algorithms. 

Advantages of Institutional Traders Over Retail Traders

Institutional traders have three key advantages over retail traders. These are: 

1. Inside Information

Institutional traders have access to expert-level information. They use paid expert networks to gain access to market news before it’s made public, such as earnings reports or governmental-level decisions. 

Moreover, they also have access to alternative data that helps them understand which direction the public interest is moving or which product is likely to increase in price in the coming days or even hours. 

2. Effective Risk Management

Institutional traders typically do not risk more than 1% per trade. They also utilize dark pools, which are private, off-exchange platforms, allowing them to discreetly execute large orders without revealing their intentions to the public market. 

Additionally, institutional traders do not trade in a single market; they trade across multiple markets. They also have access to risk management models like the VaR model and hedging strategies, helping them to prevent losses.  

3. Psychological Edge

Institutional traders recognize that one major hurdle to effective trading is human emotions, and to overcome this, they utilize cutting-edge bots that execute trades on their behalf with zero emotional bias. Moreover, their trading software is designed to prevent traders from trading after they incur a loss of 2% or 3%, thereby limiting further losses. 

How You Can Trade Like an Institutional Trader?

Here’s how you can start trading like a pro:

1. Learn Trading

You must learn to trade by dedicating a sufficient amount of time to understanding how the markets move and how to identify potential opportunities. 

2. Upgrade Your Tools

A free trading chart doesn’t always cut it. Spending a little bit of money to buy TradingView’s premium or any other pricing terminal will help you a lot. 

3. Test Your Strategy

Lastly, no strategy, whether a trading strategy or a risk management strategy, is perfect until it is refined. Continuously testing your strategy against various market conditions will significantly benefit you. 

Do Institutional Investors Control The Market?

To some extent, it’s true that institutional investors control the market, which undermines retail investors. Institutional investors account for large and frequent trades that are made on behalf of the firms and organizations they represent. Due to their financial dominance, institutional buying or selling can lead to significant price movements in individual stocks or the market as a whole. 

For retail investors, even if they make all the right calls, it is sometimes impossible for them to make a profit. However, due to stricter regulations by governing bodies, such practices are discouraged and even fined in numerous countries. 

AlgosOne – Trade Like a Pro 

Unfortunately, no matter how hard you try, the system is designed to work against you! Institutions have a lot of leverage that you will never have, no matter how hard you work or how much you improve your strategy. However, in the era of Artificial Intelligence, this is changing rapidly, and AlgosOne is proof of it. 

AlgosOne is a cutting-edge AI-powered trade automation bot that executes trades automatically without human intervention. Its combination of machine learning, real-time adaptability, human expertise, and emotionless trade execution gives it a massive edge. With AlgosOne, retail investors can trade like institutional investors and win year after year. 

How AlgosOne Trades Like Institutional Traders

Here’s how AlgosOne trades like most of the institutional traders: 

1. Scans the Market 

Firstly, AlgosOne’s trading bot scans the market 24/7 and analyzes vast amounts of data from various sources, including news, social media, earnings calls, economic data (such as GDP growth, inflation, and consumer sentiment), whale movement, network activity, and geopolitical events.

2. Finds Opportunity

The bot then shortlists high-potential financial assets and utilizes numerous technical indicators, such as RSI, MACD, support and resistance levels, and Candlesticks, to identify the optimal time to execute a trade. The trading bot also anticipates opportunities after identifying their potential.

3. Risk Management

AlgosOne guarantees your profits are secured. It utilizes built-in risk management tools to safeguard your investments and mitigate losses. Risk management includes automated stop-loss and take-profit orders. It also ensures that no more than 10% of a user’s capital is used on a single trade, thereby preventing the liquidation of the user’s capital. 

Moreover, AlgosOne also has a unique reserve fund of 103.5 million dollars that acts as insurance to protect user funds in the event of technical failure.

4. Fixed APY and High Monthly Returns

Unlike other platforms, AlgosOne offers one of the highest Annual Percentage Yields (APYs) of over 150%, which is accessible to anyone on AlgosOne’s highest tier level. Even if you’re at a low tier, you can still expect to earn a monthly return of 6% to as high as 15%. 

5. Human Oversight 

Financial experts monitor every trade on AlgosOne. They continuously monitor the market to ensure that the trading bot makes informed decisions. 

Conclusion

Institutional traders win through the help of better data, smarter risk management, and discipline. If you apply some of their strategies, you can also improve, but you will still be left behind because the market is designed in such a way that it favors institutions. With AlgosOne, that is changing; even with a low capital, you can get started and experience consistent returns year after year. 

If you’re looking for a platform that can grow your capital like institutional traders do, then sign up for AlgosOne today and earn passive income on autopilot.