The reason is the data is unreliable and volatility is random and support and resistance within a few days is meaningless.
If you think about the above its obvious why:
Millions of traders trade trillions of dollars and to try and predict what this huge mass of opinion will do in such a short time span is impossible.
But I have seen forex trading systems with great track records of gains...
Sure you have but there not real, there done KNOWING the closing prices!
You never see one audited which has traded real dollars over a long period of time, what you normally get is one of these - here is the CFTC disclaimer:
"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 put the above on and you can make up anything you want with past data.
Vendors of course do and rely on the greedy naïve investor (or both) to spend a few hundred bucks and think he is on the way to seven figure income. Of course they get a reality check of a thumping great loss.
Forex scalping and day trading systems that make huge claims that never stand up in real time trading.
If you want to lose go ahead and join the day traders - if you want to win you will understand you need to trade the odds over the longer term.
UNDERSTAND THIS
Forex trading is hard enough with reliable data and you would expect it to be, with the rewards on offer -but it's a fact that anyone can learn to trade and anyone can enjoy currency trading success.
All you need to do is get the right forex education, trade with discipline and this anyone can achieve.
If you are serious about making money, forex trading offers you life changing profits for those traders willing to learn the right way and approach forex trading with the right mindset to succeed.
All Movements in Short Time Frames Are Random
Trillions of dollars trade hands each day and million of trader’s trade, all with different objectives and opinions and to say that you can predict what they do in a few hours or a day, is ridiculous. You can’t.
Volatility takes prices anywhere in a day and support and resistance levels are meaningless, so you would have the same success rate flipping a coin.
It’s absolutely impossible to get the odds on your side – PERIOD
This is of course why you NEVER see any of the vendors selling these systems give you a real time track record – Why?
Because they don’t dare trade it!
They would rather write some enticing copy and appeal to the greed and naivety of traders and make their money selling you the system – they win you lose – period.
But I have seen a track record you may say and yes will have, but it’s NOT real.
If you check the disclaimer on it you will see there all hypothetical!
What does that mean?
It means done in hindsight knowing the closing prices!
Now who can’t do that it’s not exactly hard.
If we all knew tomorrows price today we would all be millionaires but we don’t – and neither do we know what will happen tomorrow, so there not worth the paper their written on.
Day trading is a good story but the logic doesn’t add up and the biggest lie about day trading is you can make money at it longer term.
If you could you would see a track record or the vendor would shut up and trade it himself and not need your few hundred dollars.
If you want to win
Appreciate that trading is an odds game and to trade the odds you need to trade over longer periods, where the data is valid and you can have a chance of getting the odds on your side.
Finally
Don’t day trade, get real and trade with the odds on your side.
Kelly Price has sinced written about articles on various topics from RSS, Learn Trading and Forex Trading Forex. PROFESSIONAL FOREX TRADING COURSE and FREE ESSENTIAL TRADER PDFSFor free 2 x trading Pdf's with 90 of pages of essential info and an exclusive. Kelly Price's top article generates over 165000 views. to your Favourites.