Forex Day Trading - Day Trading Doesn't Work so Don't Try it
The logic of day trading is totally flawed and will never make you money over the longer term and will wipe out your equity.
If you want to prove it ask anyone who says it does to give you a real time track record of profits and you won't get one.
Why? Because day trading does not make money.
Before we begin, you may ask yourself why there are so many people claiming they make money at day trading?
Well the answer is it's a good story and appeals to peoples greed.
This creates system sales and revenue for the vendor OF these day trading methods so they make money you lose.
Here are the reasons day trading does not work:
1. Time Period
A day is to short a time period to judge market trends accurately.
Think about it.
Trillions of dollars are traded everyday and prices can go anywhere and there is no way of guessing what the volatility in a day will be or the direction.
Short term moves are simply random.
You could probably flip a coin and do as well as most day traders.
2. Stops
Day traders use the daily range to buy and sell and set stops.
Stops therefore tend to be close to entry by the very nature of day trading.
Volatility in a single session is impossible to judge and most times simply picks off the stops and creates small losses which add up.
3. Banking profits early
Most day traders are looking to scalp a few pips here and there.
They do have some wining trades (more by luck than by judgment) but of course they break the fundamental rule of trading leveraged investments which is:
Run your profits to cover your inevitable losses.
As they have a lot of losses and marginal profits the net result is the erosion and eventual wipe out of account equity.
Day Trading is a good story, but in reality day trading doesn't work over the long term.
Simply ask any vendor who sells a day trading system for this:
A real time track record of their profits over 3 years and see the answer you get.
The conclusion from all of this?
You guessed it - Avoid day trading if you don't want to lose your money.
Related Tags: currency trading, forex system, forex profits, forex day trading, forex daytrading, forex strategies
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