Should we always abide by the institutional trading method?

<p id="isPasted">Here’s the reality I’ve learned. No retail trader can actually trade like the big institutions. If anyone tries to convince that they can teach you how to trade like them, walk the other way and learn price action. Price is king and the only thing that will ever matter. But that’s just my opinion.</p><p><br></p><p><br></p><p><br></p>

<p id="isPasted">No, traders should not always abide by the institutional trading method. Institutional methods are designed for large-scale operations with vast resources and specific mandates, which differ significantly from the typical constraints and goals of individual (retail) traders.&nbsp;</p><p><strong>Why You Shouldn't Blindly Abide by Institutional Methods</strong></p><ul><li>Differing Goals and Resources: Institutional traders work with massive pools of capital and advanced technology, including AI algorithms, high-speed execution, and proprietary data, to manage funds for clients or the firm. Retail traders use their own, much smaller capital, have limited resources, and often have different time horizons or personal financial goals.</li><li>Market Impact and Liquidity: Institutions execute large trades that can move markets, so their strategies often involve complex methods like splitting orders over time to minimize this impact. Retail traders' small trades have virtually no market impact, giving them the agility to enter and exit positions quickly without affecting prices.</li><li>Regulatory and Structural Differences: Institutions face stringent regulations and compliance burdens that can slow down their decision-making process. Retail traders have more flexibility to act quickly on opportunities in smaller-cap stocks or niche markets that institutions often can't touch due to their size limitations.</li><li>Risk Management: While institutions employ sophisticated risk management, they also manage larger potential losses. Retail traders need to implement their own disciplined risk management tailored to their smaller capital base, such as strict position sizing and stop-loss orders, rather than relying on institutional frameworks that aren't applicable. </li></ul>