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6. Retail Traders

Retail traders are individual participants-normal people using
trading platforms like MetaTrader-4, MetaTrader-5, or

TradingView.They trade through brokers, usually in much smaller

amounts compared to institutions.

Retail traders represent only about 5–10% of the total Forex

volume, yet their collective activity adds important liquidity and
volatility to the market.

However, most retail traders lose money because they:
• Rely on indicators without understanding price logic.

• Trade emotionally, not strategically.

• Ignore how Smart Money operates.

Brokers often take the opposite side of retail trades, or route them

to larger liquidity providers-meaning, when retail traders lose,
brokers or banks often gain.The key for a retail trader to succeed

is to think like Smart Money-to understand the intentions of banks,
not the emotions of crowds.