The Pathway
The Truth About Trading: How Institutions, Brokers & Prop Firms Profit Off Retail Traders

The Retail Trader Trap (How 90% of Traders Get Wiped Out)

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📍 Why 90% of Traders Fail (And It’s NOT Because They Suck at Trading)

Most traders think they fail because they “just need a better strategy.” That’s bullshit. The real reasons are deeper:

🔹 They trade the wrong way because they were TAUGHT the wrong way

  • Retail traders are fed garbage strategies that don’t work long-term.

  • Moving averages, RSI crossovers, MACD signals—all tools big players use to bait retail traders.

  • Big banks trade the opposite way, using liquidity zones and institutional order flow.

🔹 They trade in the biggest size possible, just like brokers want

  • Brokers push high leverage so you risk more than you should.

  • The average retail trader blows up within 90 days because they overleverage.

🔹 They get emotionally wrecked because they lack discipline

  • FOMO buying, revenge trading, and panic selling—this is how traders self-destruct.

  • The best traders don’t react emotionally—they execute their plan like a machine.

📍 The “Trading Educator” Scam (Why Most Online Courses Are Trash)

Most trading educators don’t actually trade—they make money by selling you a dream. Here’s how they operate:

🔸 They have IB agreements with brokers

  • They get paid every time their students lose money because of broker rebates.

  • Their goal isn’t to make you profitable—it’s to make you trade more.

🔸 They flex fake profits & lifestyles

  • Flashy cars, luxury vacations, stacks of cash—99% of it is rented or fake.

  • Their goal? To trigger your emotions so you buy into their BS course.

🔸 They sell the dream of "making a living from trading"

  • The truth? Most traders don’t even break even.

  • The only way to make serious money is to trade like institutions, not like retail.

📍 Market Conditions Are Set Up to Wreck Retail Traders

Retail traders fail because they trade against the market, not with it. The market moves in a way that:

✅ Baits traders into entering at the worst possible price
✅ Traps them with false breakouts & liquidity grabs
✅ Wipes them out before the real move happens

This is not random. Institutions move the market strategically to ensure they take money from retail traders.

📍 How to Stop Being Retail (And Actually Start Winning)

If you want to escape the retail trap, you need to stop thinking like retail. That means:

🚀 Understanding Smart Money Concepts – Banks don’t use retail indicators; they use order blocks, liquidity grabs, and imbalances.
🚀 Risking Less, Not More – Real traders risk 1-2% per trade, not 20% like retail gamblers.
🚀 Following a Plan, Not Emotions – You need a structured system, not random trades based on gut feelings.

🔑 Key Takeaway:
If you follow what 90% of traders do, you’ll fail like 90% of traders. The market is designed to take your money—until you start thinking like the ones who move it.