Here we will look at how to separate out the myth and see the reality in relation to day trading and how to win in the markets.
Myth ? Day Traders Have Profitable Real Time Track Records
Reality
FOREX day traders don't make money and the proof is that of all the e-books and systems for sale, you never see a real track record of real profits made in the market over the longer term.
What you do get is a hypothetical track record, but these are not worth the paper their written on.
Why?
Quite simply because their devised in hindsight - knowing the closing prices.
Well, if we all knew tomorrow's prices today we would all be millionaires!
Hypothetical track records are simply made up and have no bearing on how successful you will be trading the system.
Myth ? Day traders trade their own systems
Reality
Most FOREX day trading systems are sold by failed brokers, or marketing people who have the sense not to trade the system themselves.
They don't need to, as they make money anyway.
They can simply rely on writing some marketing copy to appeal to the greed of investors, then sell them the system.
They get their fee and the FOREX trader gets the loses ? fair deal for them!
Myth ? You can predict short term volatility
Reality
This is of course why day trading does not work.
Trillions of dollars are traded each day by millions of participants and to say you can predict where prices will go in a matter of hours is laughable.
The only people who take notice of support and resistance are losing day traders.
Volatility can and does, take prices anywhere in a day and levels of resistance and support are constantly broken handing day traders loses.
Myth ? Day trading restricts losses and runs profits
Reality
As day traders work with meaningless data they can't win of course but many think that day trading restricts risk, but it actually creates it.
Losses are small, as they are near daily support or resistance ( which get broken frequently as the data is meaningless) which simply ensures they get stopped out with a loss albeit a small one.
Running profits?
Forget this with day trading!
They are looking to scalp a few ticks or close positions out quickly.
The result is they can never run profits to cover the huge amount of small losses they get.
The biggest myth of currency trading is that day traders make money they don't.
They lose and system sellers laugh all the way to the bank.
The proof of the above is:
If you ever ask a day trader for a long term track record of real profits ? Try it and see if you get one.
If you want FOREX education avoid day trading and learn FOREX Trading methods that actually give you a chance of winning.
Day trading is simply one of the best ways to lose your money in online FOREX trading, so don't fall for the myth understand the reality.
Forex Day Trading Signal
I read all the time about how great FOREX day trading is, but never seen anyone able to give me a real time long term track record.
The reason of course is:
FOREX day trading is based upon logic that is simply ridiculous and dooms it to failure.
So why do day traders lose?
Consider this:
Day traders think they can predict movements in short time frames, but all short term moves are random and volatility can (and does) take prices anywhere.
If all the moves in a day are random you have no chance of making money as support and resistance points are meaningless.
Trillions of dollars are traded daily by millions of participants and to try and predict where prices will go in short time frames is laughable.
Support and resistance levels are NOT valid
Day traders try and work off support and resistance levels and continually get stopped out as volatility can and does take prices anywhere.
So you have a high probability of being stopped out and day trader's pile up a huge number of small losses.
Occasionally they get a winning trade (more by luck than judgement) but of course they snatch any profit they can get as running profits is totally alien to day traders.
The result is a wipe out of equity and it normally happens quickly.
What about all the day trading systems promising gains?
Most of these are sold by people who have never traded and rely on enticing copy to sell their systems, or failed brokers looking to appeal to the greed and ignorance of buyers.
These day trading systems NEVER come with real time track records they come with hypothetical track records.
If you don't know a hypothetical track record is one those us done in hindsight knowing the closing prices!
Well that's hard; my seven year old daughter could do that.
The fact is day trading is simply a great way to lose money quickly and it is surprising how many traders fall into the trap of trying to win at it
Don't make the same mistake, unless you want to lose your account equity quickly.
Sacha Tarkovsky has sinced written about articles on various topics from Learn Trading, detox diet and Forex Trading Forex. FREE ESSENTIAL TRADER PDF'S AND MUCH MORE On all aspects of becoming a profitable trader including features, downloads and some great
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