Day Trading - Will NOT Make You Money - Here's Why
Why? Because day trading is a mugs game - don't believe this read on and find out.
Day trading doesn't work because there is no way of predicting volatility and direction in short periods of time.
Of course, day traders say they can make money, but really their making money out of you by selling systems that don't work.
Where's the track record?
You never get a real time track record, however:
You get always get a hypothetical track record that looks good. In fact, they very often look great, but what is a hypothetical track record?
Let me explain:
It's one that is done in hindsight, KNOWING the closing price!
Now could you make money knowing the price in advance?
Of course you could.
My daughter could do that and she's 12, but she can't trade.
So why doesn't day trading work?
Two reasons:
In day trading you can't predict what will happen in a day due to volatility and you don't have data that is long enough and accurate enough to work with.
Currencies trade longer term and short term moves are simply random.
Secondly, ever heard the phrase let your profits run and cut your losses?
Well, that doesn't go with day trading.
Day traders enter and more often than not the stop is to close and bang volatility takes them out, but at least they kept their loss small!
Now let's look at running profits.
When I think of running profits, I think of weeks or months (look at a chart of currencies and you will see why) it's obvious:
Currencies trend longer term as they reflect the underlying health of the economy and economic cycles are long term, as are currency trends.
Of course, day traders close profits early, so they cut their profits and they never cover inevitable losses.
Well that's not a smart way to trade.
The Proof
Fact is day trading is a good story but in reality doesn't add up.
If you don't believe me, ask for the real time track record over a reasonable period of time and you won't get one.
Day trading system vendors make money out of selling systems, not out of making money for clients.
Enough said.
Related Tags: day trading, daytrading, currency day trading, day trading systems, forex day trading systems
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