Forex Scalping - a Guaranteed Way to Wipeout your Equity Quickly

Forex scalping and day trading are more popular than ever but it's simply the best way to wipe out your equity quickly. Here we will give you the facts about forex scalping and why it is based on unsound logic which will see you lose.

First let me ask you a question:

There are millions of traders all around the world from banks to private traders, trading trillions of dollars all with different methods, motivations and diverse opinions.

How is it possible to tell what this huge diverse mass will do in a few hours?

Know the answer?

Well if you do you can make money at forex scalping - but it's obvious that you can't predict what this vast mass will do in a few hours but forex scalpers try. Here are some of the answers you get form vendors selling systems .

1. Support & Resistance is Valid In a Day and can be Traded

Fact: Its not - volatility is totally random, prices can and do go anywhere and support and resistance levels in daily time frames are not tradable.

2. Markets Move Scientifically

Fact: This is absolute rubbish! If there were a scientific theory that worked, everyone would know the market price in advance and their would be no market! Markets move because they are not certain and while human nature is constant it certainly is not logical and predictable with scientific accuracy.

Anyway, if anyone had found a theory that worked all the time they would be to busy making money to bother anyone else.

You will see lots of forex scalping courses on the net, all promising 50 ticks a day, regular incomes and the ability to predict prices in advance - It's a wonder anyone has to go to work! Buy one of these for $100 odd bucks, sit back and earn money for doing nothing - if only it were that easy.

If ever you see a day trading or forex scalping track record it's a simulation - simply look for this disclaimer or a similar 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".

So there you have it - a vendor can make up any track record he likes in hindsight and of course they do (they have the sense not to trade it themselves) and simply put the above disclaimer on it.

Naïve and greedy traders can't resist it like bees at a honey pot, later they get a sharp lesson in trading reality - a wipeout.

The way To Make Money in FOREX

Is to forget day trading and forex scalping and trade time frames where you can get the odds in your favor and that means forex swing trading or forex trend following. The former looks for trends of a few days to about a week and the latter for weeks or months. Which you choose is up to you but with both methods ,the data is long enough for you to calculate the odds and enjoy currency trading success which is more than can be said for forex scalping.