Long term you won't make money if you try forex day trading, as you can never get the odds in your favor however more traders try day trading than perhaps any other method. Let's look at why it can never work - yet still remains so popular.
Day trading doesn't work simply because all short term volatility is random and prices can and do go anywhere in a day session. If you try and use support and resistance you are going to lose - because volatility is random and these levels are of no use whatsoever - this should be obvious to anyone - but forex day traders don't see it.
You have millions of traders trading trillions of dollars and to say you can measure what this huge mass of people are going to do in a short period of time is absolute nonsense.
So why is day trading so popular?
Quite simply it's a good story and appeals to greedy and naïve investors who are duped by marketing companies selling day trading systems, with track records that show amazing profits but they all have a problem - none of them have track records that are real, they are all simulated knowing the closing prices!
How hard is that?
Anyone would be a millionaire if they knew tomorrows price today - but forex trading is a bit more difficult.
When you see a track record of amazing gains look at the small print and you will normally see a disclaimer like this standard CFTC one
"cftc rule 4.41 - hypothetical or simulated performance results have certain limitations. unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
Put the above disclaimer on a track record and a vendor can say anything they want and of course they do. These track records never lose in hindsight but of course in the brutal world of real trading they get destroyed.
Day traders think that by trading within a day they reduce risk - but of course there is no point in have a small risk to your stop if you have a high probability of it being hit!
Day traders get lots of small losses that simply eat into and destroy their equity.
If their lucky enough to get a profit, they take it quickly which of course breaks the fundamental rule of trading - run your profits, to cover your inevitable losses.
Day traders lose and wonder why but the reason is obvious - they simply can't get the odds in their favor - PERIOD
The Way To Win
If you want to win at forex trading you must get the odds in your favor and this means using reliable data. If you like the excitement of trading try forex swing trading, if you are more patient try long term trend following.
Both the above will allow you to trade the odds and enjoy currency trading success so try these methods and do not try forex day trading.
Got a Question? Ask.
Ask the community a question about this article:
Q&A Powered by:
Latest Day Trading Articles
Treating Day Trading Like a Hobby Versus a Business
By: Leroy Rushing | 26/07/2008
Day trading is nothing to fool around with unless, of course, you have money to burn. If you’re serious about trading, make sure you don’t fall in the trading “hobbyist” category because you’re chances of trading success will be minimal.
5 Important Aspects of a Trendline
By: Leroy Rushing | 26/07/2008
These 5 insights into reading and using trendlines to your advantage are sure to help you further fine tune your trading efforts. Get comfortable with trendlines because doing so may actually lead you to more consistent profits.
Bull Market
By: MTnews | 25/07/2008
Daily Market Commentary for July 25, 2008 Written for day traders, active traders and investors. A review of the market activity for the day, economic data plus, world news from Millennium-Traders.Com
Stock Market Crash
By: MTnews | 24/07/2008
Daily Market Commentary for July 24, 2008 Written for day traders, active traders and investors. A review of the market activity for the day, economic data plus, world news from Millennium-Traders.Com
Bad Credit Mortgages
By: MTnews | 23/07/2008
Daily Market Commentary for July 23, 2008 Written for day traders, active traders and investors. A review of the market activity for the day, economic data plus, world news from Millennium-Traders.Com
What You Need to Start Trading
By: tunde | 23/07/2008
This particular technique has been around for a long time and I first saw it used in the futures market.
Since then I have seen traders using it on just about every market and when applied well, can give amazingly accurate entry levels.
Lets first start with the basic concept. During the course of any trend, either up or down, the market will form little peaks and valleys. see the chart below:
The problem is, how do you know when to enter the market and whe
Forex Trading
By: MTnews | 22/07/2008
Daily Market Commentary for July 22, 2008 Written for day traders, active traders and investors. A review of the market activity for the day, economic data plus, world news from Millennium-Traders.Com
Stock Market News
By: MTnews | 18/07/2008
Daily Market Commentary for July 18, 2008 Written for day traders, active traders and investors. A review of the market activity for the day, economic data plus, world news from Millennium-Traders.Com
More from Kelly Price
Forex Trading Strategy - Want to Trade? Check You Have This in Your Strategy or Lose!
By: Kelly Price | 23/07/2008 | Currency Trading
If you want to trade a forex trading strategy and win, you must have this in it and if you don't you are going to join the vast majority of losing traders - let's look at it...
Forex Price Movement - How and Why Prices Really Move
By: Kelly Price | 23/07/2008 | Currency Trading
This article is going to look at how and why prices move and how to win. Most novice traders make the mistake of thinking prices move to news stories and try and trade them or to some scientific theory - they don't. Forex prices are chaos - but that doesn't mean you can't win, you can and to do so, you must understand the key point of this article...
Forex Trading Fact - Anyone Can Learn Forex Trading But the Majority Lose Why?
By: Kelly Price | 23/07/2008 | Currency Trading
Most traders lose at forex trading. While the fact is anyone can learn and win if they want to, most traders lose when they don't need to, for three main reasons which are the subject of this article...
Natural Cures for Loss of Sexual Desire - Herbs for Men and Women to Increase Desire Quickly!
By: Kelly Price | 23/07/2008 | Sexuality
While men and women's sexuality has certain differences, there are similarities and here we will look at some proven herbs which will boost libido and increase sexual desire and sex drive, in both men and women and are proven to work...
Herbal Libido Enhancers - Give You the Same Affect as Prescription Drugs Safely and Naturally!
By: Kelly Price | 23/07/2008 | Men's Health
Herbal libido enhancers can not only help a man get an erection naturally the same as prescription drugs but they can also do something more - they can reignite your sexual desire which prescription drugs of course cannot. The way herbal libido enhancers do this is enclosed in this article...
Natural Herbs for Hard Erections - 4 of the Best for Rock Hard Erections Naturally
By: Kelly Price | 22/07/2008 | Men's Health
Here we are going to look at some natural herbs for hard erections which perform the same function as prescription drugs and do it naturally. They will not only help you get a hard erection, just like synthetic drugs - but also do something they can't, which is increase your sexual desire, for a complete sexual experience.
Forex Trend Following - the Art of Trend Following for Mega Profits
By: Kelly Price | 22/07/2008 | Currency Trading
Forex trend following offers you the opportunity to lock into the trends that can make triple digit profits but while it looks easy, its not and you wouldn't expect it to be with the rewards on offer but if you can master it, then you can enjoy spectacular success and this article is designed to show you how to do it...
Become a Forex Trader From Home - in Simple Steps and Make Huge Consistent Profits
By: Kelly Price | 22/07/2008 | Currency Trading
If you want to become a forex trader from home and earn a lucrative income you can. Here we will outline how to do this in simple steps you can follow and enjoy currency trading success.
Finance 
| Posted: 30-12-2007 | Comments: 
