Firstly lets make it clear now it doesn’t work never has and never will.
Don’t believe me? Then read on and I will give you ALL the facts.
Fact: Short Term Volatility is Random
You have millions of traders who trade trillions of dollars and to say you can measure what is going to happen in a few hours is ridiculous. You cannot predict what this diverse mass of people are going to do and it’s never been possible.
All short term volatility is random and prices can and do go anywhere in short periods – support and resistance levels are meaningless. You can’t get the odds in your favour and you will lose – period
Fact: Vendors claim it makes money but have no evidence
The fact is they make money selling courses - they win you lose. They have the sense not to trade themselves and normally put out a hypothetical track record – which is exactly what it implies its hypothetical, done in hindsight, knowing the closing prices – Well, that’s hard.
You and I can both do that but in the real world you don’t have the luxury of knowing the price!
You would think that someone would have the guts to trade it for real but no, these guys know it’s a good story and don’t risk cash in the market and if they cant make money for real with it, why should you trust it?
Fact: It Breaks a Fundamental Rule of Trading
Which is, “run your profits and cut your losses" of course forex scalpers keep their profits small ( and they have a lot of them) but they can’t even get lucky and catch and run a big profit!
Forex scalpers only want a few pips and don’t run profits this is ridiculous.
So you have lots of small losses and when a scalper is lucky enough to get a profit ( and forex scalpers get lucky now and again) it gets closed out quickly.
Well that is simply a recipe to wipe out equity lots of small losses an profits that cant cover them – it’s not the market that gets scalped it’s the trader.
The myth that forex scalpers and day traders make money is put about by brokers who make a lot of money from day traders and others who see a good story and a marketing opportunity but that’s all it is a good story - with no basis in fact.
Naive and greedy traders swallow the story trade lose and wonder why!
If they had done their homework, they would see that trading is an odds game and trying to scalp the market is doomed to failure and really, you would do just as well tossing a coin.
Don’t fall for the myth that forex scalping makes money finally, if you do find a real time long term track record I would be interested to know about it – I have been unable to find one in 25 years.
