Day Trading Systems - Consider This Question Before You Buy One!
- Date: 2007-03-30 - Word Count: 370
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You will see day trading systems all over the net promising you huge gains but consider this key question before you buy one:
If the system makes such great gains, why does the vendor sell it for a few hundred dollars?
Of course, the answer is:
Because it doesn't make money and the vendor is not stupid enough to trade it, when he can sell it to novice traders who are taken in by hyped up sales copy.
Day trading systems DONT work longer term and its one of the stupidest ways to trade online forex markets.
Don't believe me?
Then ask any vendor selling a day trading system for a real time track record and see if you get one (let me know if you do)
What you will get is a hypothetical track record of great gains, but what use is this?
Hypothetical means it was done by the vendor knowing the closing prices, not risking real money!
Now if we al know tomorrows closing price today we would all be millionaires, but that's not the reality of trading.
So why doesn't day trading work?
1. Volatility in any daily or hourly period is random.
The period is to short and support and resistance levels are meaningless, so you cant trade of them - You may as well flip a coin.
So what happens?
Day traders constantly get stopped out and accumulate small losses as volatility can take prices anywhere in a daily period.
Do day traders ever win?
Occasionally they get lucky and win.
When they do they get obsessed with scalping a few points profit, or getting out at the end of the day, so they can never run profits to cover their huge amount of losses.
What happens - they get wiped out longer term.
There is no better way to lose your money than day trading!
Most day trading system vendors are:
Failed brokers, writers or salesmen and make their money from selling systems.
Of course they don't trade themselves, as they don't trust their systems to make money and would rather have the guaranteed income from selling the system it's a lot less risky than trading it!
Day trading is a mugs game don't fall for the hype look at the facts.
If the system makes such great gains, why does the vendor sell it for a few hundred dollars?
Of course, the answer is:
Because it doesn't make money and the vendor is not stupid enough to trade it, when he can sell it to novice traders who are taken in by hyped up sales copy.
Day trading systems DONT work longer term and its one of the stupidest ways to trade online forex markets.
Don't believe me?
Then ask any vendor selling a day trading system for a real time track record and see if you get one (let me know if you do)
What you will get is a hypothetical track record of great gains, but what use is this?
Hypothetical means it was done by the vendor knowing the closing prices, not risking real money!
Now if we al know tomorrows closing price today we would all be millionaires, but that's not the reality of trading.
So why doesn't day trading work?
1. Volatility in any daily or hourly period is random.
The period is to short and support and resistance levels are meaningless, so you cant trade of them - You may as well flip a coin.
So what happens?
Day traders constantly get stopped out and accumulate small losses as volatility can take prices anywhere in a daily period.
Do day traders ever win?
Occasionally they get lucky and win.
When they do they get obsessed with scalping a few points profit, or getting out at the end of the day, so they can never run profits to cover their huge amount of losses.
What happens - they get wiped out longer term.
There is no better way to lose your money than day trading!
Most day trading system vendors are:
Failed brokers, writers or salesmen and make their money from selling systems.
Of course they don't trade themselves, as they don't trust their systems to make money and would rather have the guaranteed income from selling the system it's a lot less risky than trading it!
Day trading is a mugs game don't fall for the hype look at the facts.
Related Tags: day trading, daytrading, currency day trading, day trading systems, forex day trading systems
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