I came across a post today on
determining your edge as a trader which made me think of one of the best edges that individual traders normally have in the market, which is their smaller size. Because institutional traders are normally trading very large positions, they often have no choice but to go with the trend, because they must build their positions over time and because their positions are often large enough to move the market.
As most individual traders are not trading positions that are large enough to move the market or that need to be built into over time, there are many more trading opportunities that can be taken advantage of. One simple example of this is the ability to buy into support and sell into resistance, a strategy that most larger traders are restricted from executing because of their size.