Forex day trading simply doesn’t work and you will never find a trader with a track record of real time profits, however more novice traders try this method than any other type of trading. This is desite the fact it will never work, because you can’t get the odds in your favor.

If you are considering day trading then you should read this article.

First let’s look at why forex day trading doesn’t work.

The time period is to short!

Volatility in short time frames is random – PERIOD

This means daily support and resistance levels are meaningless and you can never get the odds on your side longer term.

Now let’s look at the illusion of profits.

The Marketing Illusion

You have seen them the headlines promising you 100% annual profits or a regular monthly income – all for just a few hundred dollars.

Of course the reality is they profits do not exist and it’s simply clever marketing copy.

Look at the facts and you will see no substantiation whatsoever to back up the claims.

You will of course get a hypothetical track record, done in hindsight but the key word to consider here is hindsight! The person presenting the track record knows the closing prices when they do the track record.

If I knew tomorrow’s closing price today, I would be a multi millionaire but that’s not the reality of forex trading.

The people who create the illusion you can make money forex day trading can never present a long term track record of real profits – that’s real dollars made in the market by them.

Why Create The Illusion?

These people are mostly failed brokers or marketing organizations that actually have the sense not to trade the system themselves.

Why?

Becuase they can make a guaranteed return selling the system to naive forex traders.

Patterns that don’t repeat

Many traders look at back data and see patterns.

They think they can trade themselves but this is a bit like roulette wheel paterns – there appears to be an order but the same sequence never repeat again – its an illusion, that fools many traders and when they try and trade for real they lose their equity.

Still Not Convinced Day Trading Doesn’t Work?

Here is a simple test you can do for yourself:

Ask anyone who claims they make money day trading, to produce to you a real time track record of profits, with supporting bank statements and trades.

You won’t get one.

Day trading does not make money, apart for the vendors who sell e-books and forex day trading systems and they cheerfully let you take the losses, while they bank a fee for their services thats guaranteed.

Don’t fall into the forex day trading can make you money trap! If you do you will lose your equity quickly.

Today, a majority of investors buy shares or commodities with the intention of them rising in value. There is a difference between an investor and trader. Traders are more of market predators looking to scalp out a few points during the trading day. So both require different systems for there financial success.

Forex day trading systems have developed a more risky approach toward trading the markets. Since the forex market is such a volatile market, with a constant rise and decline in values. It offers the day trader ample opportunities to cash in big.

Longer term systems are more basic in understanding the currency mechanics because you are only deciding that the value will move in one direction. Day trading adds more complexity because the trader has to determine points to buy and sell in short periods of time. This usually makes forex day trading systems more complex to understand. They usually also are also considered the quick set to riches since you realize your profit sooner than later.

Support and resistance areas play a big part in forex day trading systems. These areas provide extreme points in price value where price has turned in the past. Understanding these aspects has to be a crucial part of your understanding when trading the shorter time framed markets. If a trader is unaware of past support and resistance areas then they could be out of their money really soon.

A traders decision time also is shortened when day trading the forex market. Instant decisions have to be made since they reflect what your judgment will be to the price. If you are hesitate, it could mean your account.

Advantage to day trading though is that if you do not have patience to wait months or even years for your investment to grow, you are able to realize your profit or loss within the trading day. If you are one htta is constantly looking to be in the markets then day trading could be your forte.

Forex day trading is simply an odds on way to wipe yourself out despite this more novice forex traders try day trading than any other methodology. This article will show you the facts and why you are guaranteed to lose at day trading.

Before we look at the reasons why traders lose lets dispel the myth that vendors try and sell that their forex day trading systems can make you profits. There all over the net promising you huge gains and low risk and they come with a track record of supposed gains.

The track records are not real they are all simulated in hindsight KNOWING the closing prices and you will always see a disclaimer like the one below ( standard CFTC one ) or similar. Read it carefully:

“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 – vendors can make up any track record they like for their system and simulate anything they want. If course anyone can make profits in hindsight knowing the closing prices – but trading forex for real is a different ball game.

You don’t know the closing prices and that makes trading a bit more difficult.

In hindsight you can prove anything and I would be a millionaire several times over if I knew tomorrow’s closing price today and it’s odd that normally sane logical people buy these systems and never question the facts behind them.

So why doesn’t day trading make money?

Pure and simple – You have no valid data to help you calculate the odds.

You have millions of traders trading trillions of dollars and to say that you can measure what this huge diverse amount of opinions will do in a few hours or a day is ridiculous. Volatility can and does take prices anywhere in a day and support and resistance levels cannot be used to get the odds in your favor.

The myth of day trading is small regular profits – the reality is lots of losses and a few profits in between and the erosion of equity to zero.

If you don’t believe me try and find a forex day trading system with a real time track record over the longer term and you will search but never find one. If you want to make money at forex don’t day trade leave that to the greedy and naïve traders and concentrate on getting the odds in your favor – that means long term trend following or swing trading.

If you want to win at forex try the above and get the odds on your side.

There are a huge amount of forex day trading systems online for sale and all claim to make big profits but which do? Let’s look at how to find the best day trading system.

There is a problem with most day trading systems and it’s this disclaimer that’s comes with all the track records you see read it closely and carefully:

“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 the track records are not actually real trading, there simply done in simulated back testing knowing the closing prices and that of course is easy – trading without knowing the data is much harder.

If you find a day trading system with a real time track record let me know I have been searching for years and not found one.

Day trading is a theory that doesn’t work in practice and the reason is obvious:

You have countless millions of traders all with different forex trading strategies, aims views and skills and to try and measure what this vast diversified group is going to do in a few hours is a joke.

In a daily trading session all short term volatility is random. You simply cannot get the odds on your side, as volatility is completely random, taking prices anywhere. You can have a clever forex trading system – but if you have random volatility, it won’t work.

This is common sense, yet traders still believe that day trading works and make money however the only people who make money are – the vendors who sell the systems!

It amazes me that people trust these simulated track records – would you trust a driving instructor who had never passed their driving test? Of course not, so why would you trust a system that had never been tested and proven in the market.

You can make money with a forex trading system – but you need to look longer term, where the data is valid and you can get the odds on your side. Many people are attracted to day trading because they think its low risk – but of course its high risk.

You do have small losses and lots of them and they will eventually erode and destroy your equity. Sure you will get the odd profit by luck however, day traders don’t run profits – they cut them breaking one of the fundamental rules of trading:

Run your profits to cover your inevitable losses.

So the next time you see a forex day trading or scalping system with a track record of gains, look to see if it’s real and you will find the disclaimer we mentioned at the start of this article.

There is a new craze sweeping the forex trading industry with automate forex day trading systems.  Investors are turning more and more to these automated forex systems.  There are many to choose from.  Here is a list of points to consider about the various programs.

Proven Track Record – Any automated forex day trading system you choose should have a proven track record of profitable trades.  You should only consider those forex trading systems that have a winning ratio over 70%.  It takes that kind of ratio to make consistent profits.
Customization – Your automated forex trading software should be somewhat customizable.  The criteria you should be able to customize are things like stop losses, order sizes, and risk levels.  Steer clear of any non customizable trading programs.
Developed by Pros – Since, in essence, you’re purchasing a software program, you should get one that is created by a team of professional traders and professional programmers.  One without the other spells disaster for your forex day trading program.
Easy Set Up – The set up should take no longer than a couple hours at the most.  This set up time includes the time spent reading the instruction manual.  The set up should be easy to understand and easy to complete.
Testimonials – Pay particular attention to testimonials.  You should look for those testimonials from people that have used the software for longer than a week.  Some automated forex trading software programs only work in certain market conditions.  So it’s possible that the program works great one week, and not so great the next.

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.

This article is all about forex day trading for beginners and how to approach day trading on the face of it, day trading looks a great low risk form of trading that can make you a lot of money but as with all ways of making money, its not as straightforward as that…

Day traders don’t make money long term, the odds are stacked against them and without the odds on your side in any form of investment- your going to lose.

What about all the forex day trading systems that claim to make money?

Well there is a problem – they have never been traded and are not all they make themselves out to be. In the small print at the bottom of the track record you will normally find the statement below or a very 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.”

and

“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 and understand the above, you will see that the track records have all been simulated on back data not real time data and that of course is easy.

Try and find one with a real time track record and you can get ready for a long search. The fact is forex day trading is a theory that sounds good but that’s all it is – a theory which doesnt add up in practice, which appeals to greedy and naïve traders. They buy automatic day trading systems in droves and really dont think about the disclaimer or dont even read it!

Why doesn’t day trading work?

It’s pretty obvious if you think about the logic its based on which is about determing what millionds of traders are going to do to price in a very short time period.

You have millions of traders trading to make the price and they all have different systems, motivations, aims, skills and subject to their emotions – How can you tell what this vast diverse, mass of traders are going to do in just a few hours?

Answer -You can’t!

All short term volatility i random and prices move randomly in short time periods. Support and resistance levels simply cannot be used to time trading signals and get the odds on your side.

Forex day trading is sold on the fact that it keeps losses small and yes it does however you are going to get stopped out the majority of time. This means that by placing stops to close by trying to avoid risk you are actually creating it and guaranteeing a huge amount of losses, as your stop is to close and within daily volatility ranges.

When it comes to profits (and by the law of averages you are going to get some!) what do day traders do – do they run there profits to cover their inevitable losses?

Of course they don’t, they snatch or try and scalp a small profits which of course can never cover their vast amount of losses. Running profits and cutting losses, is one of the keys to successful investment and even the best trading systems are going to be stopped out the majority of the time.

If you believe the trade for “a regular income” or “make money on 70% of the trades” – then you are falling for the hype of advertising copy and that’s not the real world of trading. Anyone who believes these statements really needs to continue with their forex education and get a reality check.

Day trading is one of the most popular forms of trading for novice investors and if you have read and understood the enclosed the most important fact related to forex day trading for beginners is – don’t try it, unless of course you want to lose your equity!

Day trading is exactly what it sounds like: trading that all takes place in one day. In Forex day trading the short term is the main focus, meaning all entrances into, and exits from, the market need to take place within the same day.

In fact, often times day trades can take only a few hours to enter and end, with the hope that each trade nets a small profit, and that those small profits add up.

Day trading right now seems to be the trendy thing for new traders, but one thing that beginning Forex traders should know is that day trading is a pretty advanced Forex trading strategy, and shouldn’t be jumped into by newbies.

Day trading requires a quick entry and exit and the ability to efficiently use technical analysis and apply it directly to your trades. The strategy used by day traders isn’t to find one long term trade that does well, but to find several smaller trades that make a few pips here and a few pips there.

At the end of the day the strategy is to have enough wins over losses that they add up to a solid profit for the trader.

If you have ten small gains and three small losses from Forex day trading, then the hope is that those combined gains will give you a pretty solid profit on the day. That’s how day trading works, making it a far more aggressive form of Forex trading than Forex swing trading or long term trading.

Scalping is an extreme example of day trading in the Forex markets. Traders who employ scalping trading methods (appropriately nicknamed “scalpers”) are traders who buy into a position intending to see quick movement and profit off a short transaction, often times within a minute or a couple minutes of making their entry into the market.

True scalping involves when a trader opens and closes a position in literally minutes – or sometimes even less than a minute!

This quick in and out is hoping that after a quick movement and show of profit, and immediate exit will in theory help minimize risk while collecting smaller profits bit by bit. This is an advanced type of trading, that shouldn’t be tried by pure beginners into the Forex market, though if you get a good system and some experience, this could become an option down the line.

If you’re just getting started, learn about long term trades first, which tend to be at least a little more stable.

You’re probably thinking, “is there even a forex day trading system that can be placed on autopilot?” Or maybe you’re thinking something along the lines of “where do I send my check?”  Well, put your checkbook away for now.  Don’t just jump blindly on the bandwagon to finding the perfect forex day trading system.  You first need to know why you should put your forex day trading system on autopilot.  Then everything will make more sense.

Probably the biggest reason that people choose a forex day trading system that can be automated or put on autopilot is time.  You see, as it stands, forex traders need to spend a lot of time and tears in front of their computers, monitoring their forex positions.  Their forex day trading system consists of thinking, planning, analyzing, betting, watching, waiting, and regretting.  What if there was a system that could automate all of that thinking, planning, analyzing, betting, and watching.  There wouldn’t be so much regretting. 

Once you understand that you don’t have all the time you need to spend on a manual forex day trading system, the value of an automated forex day trading system becomes more appealing.  Find one that works great for you.  There are so many to choose from.  Just be sure to pick one that has proven results and is a popular one among forex day traders.

You should also be sure you learn to maximize your profits the best way possible.  This can be done easily by automating your forex trading.

Most Forex systems used by new traders are short term day trading strategies which aim to take small risk and pile up a huge regular income and here we will look at how to succeed…

The challenge a day trader has is the following:

Millions of people (All with different Views, skills etc) + Who Don’t think Logically = so what Forex Day Trading Strategy can Predict what will happen in minutes or hours?

The answer is: None of them!

Its simply the dumbest way to trade, you cannot predict what a huge mass of people with different opinions and skills, are going to do in hours or minutes its impossible and here is the proof:

Fact: All volatility in short term time frames is random and you cannot get the odds on your side, you can’t win long term!

Fact: Forex day trading strategies sold have never made real gains. They simply have back tested track records and it’s easy to win when you know what the price was.

It’s a good story, making a regular income with small risk, just like Harry Potter is a good story but make sure you don’t believe it, or you will lose.

Want to win at Forex trading?

You can but you must get the odds on your side and that means Forex swing trading or long term trend following, you can trade the odds here and that means – big profits if you have a robust forex trading strategy.

Do not make the mistake of day trading or forex scalping, get the right Forex education and trade long term and you can soon be enjoying currency trading success.