An advocate for the small retail trader improving their performance by using less discretionary trading. Blogging my experience with Interactive Brokers Portfolio Builder.

I am on a crusade to alert retail traders (like myself) not to get caught in the discretionary trap of trying to time the trade/market just right. I know discretionary trading has its perks. I have had some of the most satisfying big successful trades, particularly in 2007-2009. However, these wins do not outweigh the big losses and multiple small losers that in the end, ruined multiple trading accounts and confidence in my own trading strategies and ability to trade. I imagine brokers relish in the fact that small retail traders keep using discretionary day trading year after year trying to find that sought-after consistency, it's a **** unicorn IMHO. We all have seen or read the sales pitch to retail traders, trading gurus and brokers pitch how easy it is to become a multimillionaire in very little time with very little money.

The most likely path to success for retail traders is to change the mindset of what a trading account looks like. Think of it as an aggressive saving account that you will manage for decades, this will help keep performance expectations within the stratosphere of earth. I still believe trading for a living is possible, but it takes a large amount of capital to live off of an annual return of 15-20 percent.

Reality check!

Warren Buffet the "Oracle of Omaha" has averaged an annual return of 20%. Think discretionary trading can outperform this kind of performance year after year?

- Trin