The Outlier Trading Podcast Euan Sinclair on Retail vs Institutional Trading | The Outlier Podcast
15 snips
Nov 12, 2025 
In this engaging discussion, Euan Sinclair, an experienced former institutional/options market maker and author, illuminates the stark differences between retail and institutional trading. He shares insights on how institutional traders think about risk and loss, emphasizing the importance of discipline and structured strategies. Euan also cautions against relying on short-term P&L for evaluating strategies and offers practical methods for managing psychological challenges. He advises traders on sizing positions wisely and recognizing opportunities in market extremes.
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Institutional Roles Mask Individual Performance
- Institutional traders operate as parts of a team and rarely have a single accountable track record like a retail trader does.
- The firm's franchise and customer flow often create profits that the individual trader didn't personally generate.
Hedge To Isolate Edge And Treat Trading As A Business
- Isolate the single exposure you want by hedging away risks you don't want, rather than treating hedges as separate money-makers.
- Treat trading like a business: be detail-oriented, negotiate costs, and maintain professional routines.
Minimize Friction: Trade Less, Watch Costs
- Avoid frequent tinkering and respect transaction costs; every keyboard touch costs you and adds up over time.
- Negotiate lower commissions and check statementsāprofessionals optimize tiny edges relentlessly.
