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Forex trading, be rich or bankcrupt

Forex trading, be rich or bankcrupt



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Day Trading - 100% Losses Guaranteed

By : kelly Price
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Forex day trading is simply one of the best ways to lose your money and the logic it is based on is absurd and common sense should tell anyone why it doesn't work. Yet year after year day traders trade and lose using day trading methods. Lets look at why.

Before we look at why day trading doesn't work lets first look at all the systems that supposedly make money on the net. They don't make money in real trading though it's all simulated made up track records using past data.

If you see a day trading system which claims that it makes money simply look for the following in the small print at the bottom:

"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 disclaimer simply means nothing in terms of future profitability. Why?

Because if you want to make up a track record using past history - anyone can do that.

If we all knew prices in advance we would all buy the bottom and sell the top and never lose any money - in fact we would all be multi millionaires. Shame it's not that easy though!

We have to trade without knowing what will happen and that really is a lot harder

Day trading is a good story and marketing companies know this so why not write some hyped up copy to appeal to greedy traders, make up a great track record and then sell it to the unsuspecting trader?

That's what happens and time and time again the novice trader falls for it - He thinks he is going to make his fortune by handing over a few hundred bucks and then he gets his lesson in reality his equity is lost.

So let's look at why day trading is a loser's game

The reason day trading doesn't work is that the logic it is based upon is absurd - think about this:

We have millions of traders, all with different motivations and forex trading systems and day trading is supposed to allow you to gauge what this vast diverse mass of emotional beings will do so you can enter trades on a tick chart?

Its common sense this cant be done and that's why over the longer term day traders lose.

All volatility in daily time frames is random, support and resistance levels cannot be used and you cannot get a trading edge so you will lose.

If you can't get the odds in your favor you will lose period

Avoid forex day trading unless you want to lose your money and lose it quickly.

Leave it alone and trade the longer term trends where you can get a trading edge and you can get the odds in your favor - Period.

About the author:
NEW! 2 X FREE ESSENTIAL TRADER PDFSFor free 2 x trading Pdf's with 90 of pages of essential info and more F orex education visit our website at: http://www.learn

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