Day Trading - Using Intra Day Charts for Profit
Day traders look to use hourly charts within the day so they can trade with limited risk and get out with a profit.
When doing this they use a variety of technical indicators such as pivot points to help them.
Let's see how intra day charts can be used to help make profits in forex day trading.
The answer is you cannot make profits consistently trading using intra day charts!
This is obvious to most people except day traders.
The Proof
The reason is obvious, but many novice traders fall for the hyped sales copy of vendors selling these forex day trading systems.
However, if you ask them for their real time track record you won't get one.
Of course, you will get a hypothetical track record done in hindsight.
These show wonderful profits, but as the track record has been constructed in hindsight knowing the closing prices it's not exactly hard to make money!
If I knew tomorrow's closing price today I would be a multi millionaire but of course forex trading is not like that.
The reason why intra day charts are useless and day trading logic is flawed:
1. Consider this everyday trillions of dollars are traded by countless millions of traders all with different investment objectives and styles.
To think that this mass can be predicted in the time period of a few hours is laughable.
2. Most of these traders pay no attention to day or intra day levels the only people who do are day traders and their a tiny losing majority.
As these levels are not considered important, volatility can and does take prices anywhere.
3. It's a fact that volatility within in any day is random.
It doesn't matter what indicators you use, day traders are working with meaningless data.
4. Day traders who use intra day charts think that they can restrict risk, but of course they actually create it.
Their stop levels get triggered the majority of the time, as volatility stops them out.
When their lucky enough to get a winner, they don't run the position and are grateful to get out with any profit they can.
So not only do day traders use meaningless data, they also break the fundamental rule of investing:
Cut your losses and run your profits to cover them.
Day traders to be fair do keep losses small ( and they have a lot of them ) but of course they can't run profits to cover them.
What is the end result?
A wipe out of account equity.
If you want to lose your money quickly, their really is no better way then trading with intra day charts.
So why do so many people fall for day trading systems?
They tend to be greedy investors who think forex trading is easy, or novice traders who don't know any better.
Day trading systems are sold by vendors who rely on attractive sales copy.
They tend to fall into two groups failed brokers or marketing people who have never traded.
Of course their not stupid enough to trade the systems they sell themselves - That's why you never get a real time track record
They simply make money from selling the system and leave buyers to lose money.
They win, day traders lose, it really is that simple.
Related Tags: day trading, daytrading, forex trading systems, day trading systems, forex day array trading
MORE FREE TRADING INFO & A SYSTEM WITH A REAL TIME TRACK RECORD
On all aspects of becoming a profitable trader including info and for an exclusive Gann Trading Course visit our website at http://www.net-planet.org/index.html
Recent articles in this category:
- Sbi Best Sip Plans 2010
SBI Mutual funds have introduced many mutual schemes. Each scheme has different limitations. SBI SIP - Icici Sip Plans 2010 - Best Sip Plans
ICICI Prudential offers many schemes. These fund schemes have SIP. What is SIP? SIP's expansion is S - Determining Where To Invest Money
There are several kinds of investments, also you will find numerous factors to find out where to inv - Retirement Plans A Necessity Of Life
A person works whole life to give a decent upbringing to his children and families. But while improv - Stock Market Timing Signals
Follow the PlanThis would seem a statement of common sense, but the fact of stock market timing sign - A Selection Of Financial And Investment Strategy Guidelines For Turning A Profit
Yet, we don't often have the money to leave work right at this moment. We need a constant salary to - Find Out The Profitable Way To Invest In Small Cap Stocks
Everyone wants to find a penny stocks list or other investment strategies that can turn your literal - Portfolio #4 - Watergate
IntroductionThe problem is not that the world is running out of water. No, the problem is that drink - Dulton Group: Information Content Of Dividends
Dulton Group helps you to analyze the information content of dividends, an important factor affectin - Coping With Fear In A Markets
The real fact is that all traders, investors as well as stock market investors, who feel afraid, occ
Most viewed articles in this category:
- Investor Stress: A New Approach
George Muzea is both an investor and a stock market advisor. In any given month, he will be paid $10 - Real Estate Investment Financing
1. Location: Your real estate investment's location is arguably the most important component of your - Canadian Oil Sands - Who Are the Major Players
The Canadian oil sands represent one of the most lucrative investment opportunities to oil and gas i - Why Bulk Preconstruction?
Bulk preconstruction is the latest trend in secure, high profit real estate investing. By buying wit - Investing - It Is Not As Scary As You Think
Many people want to have more money - OK everyone does. However, most people don't know how to go a - How Do I Know Which Programs Are Scams?
Although it is virtually impossible to tell if a HYIP is a scam until the moment when they stop payi - Currency Trading Success - 6 Tips to Increase your Profits
If you want to increase your profit potential and achieve currency trading success then the simple t - The Business Cycle
Investors who want to beat the market should be followers of the business cycle. The business cycle - Pros and Cons of Real Estate
Like any other profession, there are good and bad things about what are available. Each of the thin - The Fixer Upper
Real estate investing has become almost a national pastime. Millions are made every year on the buyi