Author Login | Popular Articles | RSS Feeds | Sitemap

Home | Finance | Currency-trading


Forex Day Trading - The Truth about Day Trading and Scalping Systems

By: monica hendrix

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.

Article Source: http://www.articlesnatch.com

About the Author:
NEW! 2 X FREE ESSENTIAL TRADER PDFS
For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive Forex Trading Success visit our website at: http://www.learncurrencytradingonline.com

| Print | Ezine Ready | |

Recent Currency-Trading Articles

  • Forex Trading Method - A Simple, Profitable Method Any Trader Can Use For Big Gains By: samuel L Berkovits - If you want a simple Forex trading method which is easy to understand, you can learn quickly and makes triple digit gains then you will find one enclosed which could lead you to Forex trading success. If you look at any currency chart you will notice they trend for long periods in the same direction either up or down but look a little closer and you will see something else...
  • Forex Trading Advice - The 3 Pieces of Advice You Must Learn to Enjoy Forex Profits By: K Price - In this article we will give you 3 pieces of Forex advice you need to understand to enjoy big Forex profits and the fact is most traders don't understand 3 fundamental facts about Forex trading so in this article we will look at them. Let's start with a well known fact about Forex trading and its this - 95% of traders lose money and that's a very big percentage and the first key error novice traders make is this: 1.
  • Forex Trading Signal - A Free Signal For Big Forex Profits By: K Price - In this article, I will give you a free Forex signal which works and will continue to work. Another advantage of using this signal is the logic is easy to understand, so you will have confidence to execute it with discipline. The trading signal we are going to look at, has been used by traders for over 25 years and was devised by Richard Donchian, one of the true trading legends.
  • Forex Success - The Reason Anyone Can Get Rich in Forex! By: samuel L Berkovits - Anyone can achieve Forex success because its a known fact, that everything about Forex trading can be specifically learned, by those will to put in some time and effort and willing to adopt the right mindset. So anyone has the potential to get rich in Forex but not everyone succeeds, so do you have what it takes? Lets find out. Trading legend Richard Dennis, set up an experiment to turn ordinary people with no trading experience' into traders in just two weeks.
  • Forex Secrets - Learn the Secret of the Millionaire Traders By: K Price - You will read a lot of Forex secrets online but in truth there is only one secret of successful Forex trading and its the subject of this article. If you look online, you will see lot's of so called experts selling you methods that can make you rich from cheap software robots and expert advisors and some systems that even tell you they can predict the future!
  • Work from home “jobs” don’t WORK. Make $91,083 a REAL way! By: Christian Abad - So what does? If you’re like me, you’ve spent a lot of time looking for a legitimate way of producing either some extra income, great wealth, and/or residual income. Work smarter not harder right? Most people know me from my blog and have been keeping up with the different work at home jobs I’ve tried over the last 5 to 6 years.
  • Stay at home jobs wanted by everyone By: Christian Abad - Getting laid off could be the best thing that has happened to you. In these economic times people are losing jobs and are looking for a new source of income that’s solid, legitimate, easy, and guaranteed. If you could make $91,083k a month would you? You don’t have to be a trading genius to steak your claim in the piece of the pie. So stop trying to find a job and look at your other, better options.
  • Is Forex Online Software Trading Really Necessary? By: David Hurst - Many often use the wrong investment method when it comes to making more money doing forex trading. When using forex online software trading to help you trade, the pathway to riches is clearly determined. The best part is just about anyone new to forex trading can use it since its simple to follow.
  • AN EASY WAY FOR FOREIGN EXCHANGE PAYMENTS By: compare moneytransfers - It is not an easy task to buy a property in a foreign country. You need to understand and check about particular facts like financial and taxation implications of buying property abroad. The documentary letter of credit is the most often and safe way of imbursement in export and import dealings. You have mislaid an opportunity to save your currency on your buying property abroad. There are many properties abroad who are selling out their property at lower rates.
  • Financial Software Forex Trading As Your Trading Tool By: David Hurst - Even though in our current unfavorable economy, there are still ways to make money provided you know where to look for. When trading forex, using financial software forex trading is one of the ways available to anyone with the willingness to try. Unlike stock trading, the foreign currency market continued to be a sound place to invest your money and generate substantial revenue on your investments. These days, you can start your investments small in Forex trading.

Still can't find what you are looking for? Search for it!

Custom Search

Submit Your link to the Open Link Directory Project

Copyright 2005-2008 MJE Sales, LLC. All Rights Reserved.
Proud member of the ArticleCkr Search Network Search Network!
ArticleSnatch.com is free for both publishers and authors to use and is supported entirely from advertising revenue.
Use of our service is protected by our Privacy Policy and Terms of Service.