Forex Education - Why Day Trading is a 100% Great Way to Lose Money

If you learn one thing from your forex education then it's - avoid day trading. Day trading systems are simply a guaranteed way to lose money yet, more novice traders attempt this method than any other. Let's look at why it's not a smart way to trade.

Think about this fact:

We have millions of traders Trading trillions of dollars each day - all individuals like you and me with their own opinions and motivations.

Now to say that you can tell what this huge diverse mass of people are going to do in a few hours is ridiculous - you can't

All short term volatility is random and prices can and do go anywhere in a day, support and resistance is meaningless and you can apply any technical tool you like it wont help - the data is to short to be useful.

The Proof

How many times have you seen these headlines:

"Scalp 100 pips a day", "day trade your way to a fortune", "make $10,000 a month" etc and it's a great read - but that's all it is, a clever story where the facts simply don't add up.

Do you ever get a real track record to support the hype of the copy?

Of course you don't. All you get is a made up track record done in hindsight ( not exactly hard when you know the closing prices ) but forex trading is a little harder you don't know them in advance!

If you see a day trading system which claims to have made profits, look for this standard disclaimer or a similar one to this CFTC Standard which you see a lot:

"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".

Read it carefully and you will see that if you put the above track record on a system you can say whatever you want.

Don't fall for the hype of day trading you won't win and if you want to prove it to yourself, try and find a REAL TIME track record - that's real dollars and supporting account statements.

Let me know, because I have been trying to find one for 25 years with no success.

So keep in mind when learning currency trading and getting your forex education - leave day trading out of it.