FOREX Day trading sounds good in theory, but in practice few succeed as the odds are simply against you.

Let’s look at day trading and see why it is not a good way to trade and some better ways to make profits from FOREX markets

The time span is to short

It is almost impossible to predict which way the market is going to go in one day. Currency markets reflect economic fundamentals and they are longer term.

To try and predict what might happen in a short time is impossible

To Win You Need to do the following and you can’t in FOREX day trading

One of the fundamental rules of trading FOREX markets is run your profits and cut your losses – You simply can’t do this in day trading and your profits are too small to cover your inevitable losses.

And it’s even worse

Transaction costs are more and are reflected in FOREX day trading in a loss that is deducted from your profits and added to your losses and when you trade frequently these add up.

Why do people day trade FOREX

It sounds good in theory and traders think that they are restricting risk but they are actually creating it and making sure that their profits can never cover their inevitable losses.

Brokers love day trading as they make a lot of commission. Course writers love it because it’s a good story, ( and very often they get some pips as a referral commission ) if you buy a course doing day trading ask for a real time track record and see if you get one.

Better ways to trade

You can trade short term and swing trading over a few days can be successful, but perhaps the best way to trade is a long term system (keep in mind many currency trends last for months) this way you will

1. Catch the big trends that make the big profits.

2. Have the opportunity to win on only a small percentage of trades and still make long term profits.

3. Get the odds in your favor.

4. Restrict the impact of transaction costs.

If you want to day trade FOREX You can but the odds are stacked against you maybe you will be one of the lucky ones to make money but don’t bank on it.

There are many forex day traders whose aim is to make regular profits everyday and over time these small profits mount up. There are plenty of forex trading systems on the net to choose from – but how do you choose the best for this form of trading?

The fact is you can’t choose the best one because NONE of them work.

Fact:

It is impossible to earn money every day or regularly when trading and it’s impossible with day trading – because day trading simply doesn’t work at all.

The Reality

Day trading systems are sold on hyped advertising copy and use hypothetical track records (that means done in hindsight knowing the closing prices!) so their of no use in proving profitability going forward.

Keep in mind you never find a day trading system with a real time track record.

So why doesn’t day trading work?

Quite simply because the data period is to short and you cant get the odds on your side.

Think about it:

There are millions of traders trading trillions of dollars each day and to say that you can judge what they will do in a few hours is laughable, yet many naive and greedy traders take the bait, buy a system and lose.

FACT

All short term volatility is random and prices can and do go anywhere in a day, support and resistance levels are therefore meaningless.

You can never get the odds on your side and over time you will lose – PERIOD.

Are there any day traders with real time track records?

Many claim they have but will never show it to you maybe theere is one somewhere but I have never found one in 25 years of trading.

The people who sell these systems know there a good story and simply use hyped advertising and a meaningless hypothetical simulation to sell the system. Of course these people don’t have the confidence to trade themselves for real, as they know the systems don’t work.

The deal is:

You buy the course or system, then lose and they pocket a fee or guaranteed income.

You lose they win, it’s as simple as that.

Sorry – No FREE Lunch

There are a huge number of forex trading systems out there (most in forex day trading) that promise that if you follow them you will get rich. Of course if it were as simple as that everyone would be traders and no one would work!

Forex trading is hard – 95% of traders lose.

To win you need to learn and trade in away that you can get the odds in your favour and that means no day trading – look longer term and do your homework.

There is no “free lunch” when it comes to making money, so when you see the next “sure fire” forex day trading system don’t be fooled by the copy or ask for the real time track record and if you do get one – let me know.

Forex day trading simply doesn’t work and traders get wiped out yet, it is very popular and this popularity has nothing to do with profits and everything to do with curve fitting so lets look at.

Curve fitting is the bending of parameters of a system in hindsight to fit the data.

This is done by some traders who don’t know what their doing and by forex day trading vendors who know exactly what their doing.

A trader I know compared curve fitting to – shooting blindly as a barn door, then afterwards drawing a chalk circle around everyone, to make it look like a bulls-eye!

Many traders test their day trading system over a period of data and they cant get a profit with the parameters or inputs they are using so they simply bend the system to fit – by optimizing the system rules. Of course, no period of data replicates itself exactly in the future and the optimized system collapses.

A curve fitted system normally has a lot of rules or parameters and unique rules and parameters for different market conditions or currencies and if it does – it will break in real time trading.

Forex traders don’t just do this in day trading they do it in all areas – but its very common in day trading.

Vendors on the other hand, know that forex day trading is a good story and they therefore want to make an attractive track record to sell their system – so they optimize it to show big profits and low risk. If you look at some of the track records produced you know they can’t be real – or not for a few hundred bucks!

All they do is present the track record and then put a disclaimer on them, to cover themselves and this the disclaimer you will see:

“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 show”.

So you can make up whatever you wish as you know the closing prices. Of course, in reality these track records never make gains in real time, as the vendor does not have the advantage of the closing prices and being able to manipulate the track record.

Investors who buy these forex day trading systems from vendors, don’t stop to think that these track records are not worth the paper their written on, trade them and lose.

Vendors make a lot of money from day trading by selling systems NOT trading the markets.

The buyer takes the loss and the vendor makes a profit from the sale.

You will never find a real time track record of profits (or if you do let me know) because day trading simply doesn’t work. Here’s why:

In daily time frames, all volatility is random and prices can and do go anywhere in a day. Support and resistance levels are meaningless and cannot be traded, you can’t get the odds in your favour and you will lose.

Don’t believe me?

Then try and find a real time track record and you wont get one.

Sure, those day trading track records look attractive – but keep in mind their almost certainly curve fitted, done in hindsight and will not repeat their profits in the real world.

Most newbie forex traders go for forex day trading as a basis for their forex trading strategy, as they see it as a low risk way to trade and an opportunity to make small regular profits. This article is all about day trading for novices and what they need to know.

The rise of online forex trading, tighter spreads and lower minimums has led to an influx of day traders and there are plenty of vendors offering day trading or scalping systems which claim to make big profits but there is a problem.

They all lose – because day trading by its very nature is bound to fail. If you see a day trading forex track record chances are it has a disclaimer on it like the following one – take a read and you will see its not reality:

“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”.

Of course it’s simulated knowing what happened and vendors can and do make up track records to sell to greedy naïve traders and the greedy herd all lose.

So why doesn’t day trading work then?

It’s obvious we have countless millions of traders all with their own different forex trading strategies and views and to say you can predict what they will do in a few hours is totally absurd.

Humans are not predictable in short time frames their the total opposite!

All the volatility in short term time frames is random, daily ranges cannot act as support and resistance and anyone trying to trade the data is wasting their time – its simply not valid.

If you want to win:

Keep in mind you need the odds on your side and that means trading longer term.

If you do, this you’re using valid data where you can win and it really is as simple as that. The shame is many day traders work hard (far harder than a lot of the traders who make big gains) but they lose through ignorance of how and why markets really move.

Day trading for novices is simply a quick lesson in how to wipe out account equity – PERIOD.

Forex day trading is the most popular method for new traders to try and it is a guaranteed way to lose money quickly. Why? Because the logic that forex day trading is based upon simply doesn’t add up – here’s why you are destined to lose if you day trade.

Firs of all lets look at all those forex day trading systems which make big claims on the net with their supposed track records.

If you see a day trading track record look for the disclaimer below:

“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”.

The above is the most common as its standard CFTC one. As you can see the track record means nothing as it’s never been traded! It’s been done knowing past data and is simply a hypothetical simulation.

Unfortunately, forex trading is not that easy we have to trade not knowing the prices in advance.

You only ever get a simulation because these vendors don’t have the confidence to trade their own system, as they know they dont work!

They want to make money from sales, while a mug trader loses. The vendor has a guaranteed profit and the trader a guaranteed loss.

So why doesn’t day trading work?

Well its pretty obvious if you think about it – you have millions of traders, trading trillions of dollars and to say you can gauge what this vast diverse trading base will do, in a few hours is ridiculous.

All daily volatility is random and prices can end up going anywhere and they do.

Support and resistance levels in daily time frame are useless and you would have as much success flipping a coin.

Day trading is simply a great way to lose money long term you don’t have the odds in your favour and you wont be lucky for ever – leave forex day trading to the naïve or greedy traders and concentrate on trading longer term, where you can trade the odds and win.

Forex day trading attracts more new traders than any other method of trading and there are plenty of day trading systems to choose from but how to choose the best ones read on and find out…

If you are considering forex scalping or day trading, then you need to reconsider your options – it doesn’t work and all the systems you see fail in real time.
If you wondering why read the disclaimer below and you will see:

“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”.

They simply haven’t been traded – there put together from past data in imaginary trades.
Well that’s no indication of profits and if you’re like me you would want to know a system has made real money.

So why haven’t the vendors traded them?

After all they want you to trust something they claim will make big money (and show track record even though it’s not real) and you would think, they would have the confidence to trade what they promote.
The reason they don’t is they don’t have the confidence they will work and rely on selling systems to make money.

In fact forex day trading systems are based on logic that is totally flawed.

Sit back and think about this:

How many traders are trading currencies? Countless millions – all with different views, skills and aims and you are going to have to figure out what this diverse mass may or may not do, in a matter of hours – can you do it?

Try and see and you will fail because all the volatility in short time spans within a day is random. If you have random data, where prices can go anywhere and no technical tools work how can you make money?

You can’t

Day trading is a good story but so to is James Bond – but a story is a story and reality is reality and the reality of day trading is, the odds are against you and you will lose in time.
If you are still not convinced, try and find a long term track record of day trading profits over 2 years, supported by broker statements. Let me know when you find one of these, as I have been searching for 26 years and not found one yet!

Avoid forex day trading systems and trade longer term where you can get the odds on your side and win.

FOREX Day trading is more popular than ever as traders seek to make big consistent profits from scalping the market and building a regular income.

Here we will look at the common day trading mistakes people believe will make them money and why they lose.

Before we start consider this fact.

You will see numerous day trading systems with attractive copy telling you how much money you will make from online forex trading yet, the most important part is missing.

You NEVER get a real time track record of profits!

You get a hypothetical one ( but that is designed knowing the closing prices so is of no use ) but never a real time one the vendor has traded and made money out of.

Why?

Because these guys don’t make money from FOREX day trading, they make money selling systems and their smart enough to know day trading by its very nature doesn’t make money.

There are numerous mistakes that people make that make them think they can make money so here they are

1. They believe hyped sales text and hypothetical track records

This proves nothing.

Anyone can do a track record knowing the closing prices even my daughter and she’s ten.

If you believe sales copy and don’t check the facts your asking for trouble.

2. You can predict support and resistance in short time frames

All volatility is random so support and resistance levels, pivot points etc are meaningless – its laughable that people think their valid.

3. Successful technical indicators wont work

Technical indicators that work in other time frames don’t work in day trading as they have no reliable data.

It doesn’t matter how good the indicator is – if it has no reliable FX data its doomed to failure and day trading data cannot be used, so these indicators fail.

4. Cutting losses and running profits

Even if the data was reliable (and we already know its not) then at best trading is an odds game and your losses need to be small and you need to run your profits to cover them.

This is true of trading FX in any time frame – you will always have losses that just life and trading.

FOREX day trading does not even achieve this.

Sure your losses are small, but you can never run your profits to cover them.

Day trading by its very nature only holds profits for a short time and the idea of scalping is laughable – The market doesn’t get scalped the trader does for all his equity.

Most FOREX day trading systems are sold by failed brokers or marketing organisations that don’t trade their systems – they know it’s a good story and it sells.

It makes them lots of money and the trader takes a beating from the market, but their happy as they have the income from their system sales.

If you are considering FOREX day trading doesn’t!

It’s a big mistake and will ensure you lose your equity quickly.

Don’t fall for the hype look at the facts and save your money.

The biggest myth of forex day trading systems is they are a low risk way to make profits the reality is there odds on to lose you all your equity – lets look at the evidence that shows this.

When you see a forex day trader who claims to have made money longer term check the small print and look at the disclaimer. You will normally see one like the one we have printed below, or a very similar one which, just means the track record has been made up and the system has never been traded – here it is:

“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”.

If you have read the above, you will see that a track record that has this has supporting evidence of profitability means absolutely nothing, in terms of the profit potential of the system, when you use it.

There is a huge difference between making money when you have all the prices at your disposal and trying to make them when you don’t.

You can’t make real dollars in hindsight!

Most day trading systems are sold by marketing companies and not traders – if they were traders and they had confidence their system worked, they would present an audited track record of real time profits.

The question you need to ask yourself is – if the traders doesn’t have the confidence and doesn’t want to trade it, then why should I trust it?

Day trading is a great story – but that’s all it is, it doesn’t work.

The time period is to short and all the volatility is random in short time frames – longer term your odds on to lose.

Forex traders are attracted to day trading because they think its low risk but the opposite is true its very high risk.

Sure, you only take small risks per trade but the chances of being stopped out are huge. On the other hand, day traders never run their profits and they can never cover the huge percentage of losses they take.

Day trading will make you lose and if you don’t believe me, try and find a real time track record supported by the brokers statements over the longer term – say, 2 years and you will never find one.

So the truth about day trading is it is likely to see you wiped out not make regular profits over time that the vendors who sell systems claim.

If you want to win at forex trading forget day trading and trade the odds and that means trading longer term. Concentrate on this, get the right forex education and you could enjoy forex trading success.

Many novice forex traders want to learn forex day trading online and scalp small regular profits to build into big consistent profits over the long term this is article is all about forex scalping and day trading success…

If you are considering learning forex day trading online then think again it will lose you money! Why?

Because you cannot judge where prices will go in the short term and will lose all your money over time.

The Myth of Forex Scalping and Day Trading Profits

Of course there are plenty of forex mentors and gurus who try and sell you forex systems all with great track records and they all have a problem – they all carry this warning, read it:

“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”.

If you have read the above you will see why these forex day trading strategies are unlikely to work for you.

- They haven’t been traded and are just made up!

- Anyone can make money knowing the closing prices but that’s not the real world

- You could ask yourself the question – why if the systems are so good why the sellers don’t trade them, shut up, keep quite and not bother you for a few hundred bucks!

Well you know the answer these systems are designed to be sold and rely on traders not reading the warning to closely and falling for clever marketing copy.

Try and find one without the above disclaimer and your in for a long hard search I have never seen one with a proper real time track record supported by account statements and neither will you and if you do let me know!

Forex day trading looks good in theory – but is doomed in practice ask yourself this question:

You have a huge number of traders who all contribute to the price and who have different motivations, skills and methods of trading and you have to decide what this unpredictable mass is going top do in a few hours.

Its impossible to do so don’t bother trying!

95% of forex day traders lose (100% in respect of day traders) and it’s hard to make money but it’s possible if you put the odds on your side and this means looking at longer term data where you can get the odds on your side.

If you want to win you must use valid data that can help you predict the odds – if you can’t play the odds you can’t win, it really is that simple.

Learn Forex Day Trading Online is a loser’s game so don’t even try it unless of course you want to lose all your money!

There are many forex day trading strategies and systems you can see promoted or for sale online – but which are the best? Let’s find out…

The answer is any forex day trading strategy you try won’t work because day trading and scalping by its very nature is doomed to failure – Why?

It’s simple really if you think about it.

You have to decide in a matter of hours or minutes, what a vast diverse group of traders are going to do and this group is countless millions.

Chaos in the Short Term

They all have different aims, educational levels, some are hedging some speculating, there are long term trend followers, swing traders and day traders and many are governed by their emotions, with greed and fear to the fore, so how on earth can you predict what they will do in short time spans?

You can’t! All short term volatility is random and you have no way of getting the odds on your side and you will lose.

What About the Profitable Track Records You See From Vendors?

You may see track records of profits but they are not quite what they seem.

Hunt around for the disclaimer on any of the forex day trading strategies you see sold online and you will see the worlds “hypothetical”, “simulated” and “back tested” written in the small print.

This means done on paper, not in real time! So these track records count for nothing, there simply made up.

Can You Make Money with any Short Term Trading?

Yes you can and rather than think forex day trading strategies think – forex swing trading strategies. Swing trading looks at longer time frames, normally a few days to a week and here you can get the odds on your side and that means you can win.

It’s still short term trading- but the data is valid and you can calculate the odds which is impossible in day trading.

If you like the idea of trading short term this is the way to go.

You can put together a robust swing trading strategy quickly and be making big profits in less than 30 minutes per day.

So don’t believe the hype about forex day trading strategies, go for a short term trading strategy that works forex swing trading.

You can avoid an inevitable loss and get on the road to currency trading success.