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Forex Day Trading System - Finding A Day Trading System For Big Profits |
Finding A Forex Day Trading Systems
There are a huge amount of forex day trading systems online for sale and all claim to make big profits but which do? Let's look at how to find the best day trading system.
There is a problem with most day trading systems and it's this disclaimer that's comes with all the track records you see read it closely and carefully:
"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 the track records are not actually real trading, there simply done in simulated back testing knowing the closing prices and that of course is easy - trading without knowing the data is much harder.
If you find a day trading system with a real time track record let me know I have been searching for years and not found one.
Day trading is a theory that doesn't work in practice and the reason is obvious:
You have countless millions of traders all with different forex trading strategies, aims views and skills and to try and measure what this vast diversified group is going to do in a few hours is a joke.
In a daily trading session all short term volatility is random. You simply cannot get the odds on your side, as volatility is completely random, taking prices anywhere. You can have a clever forex trading system - but if you have random volatility, it won't work.
This is common sense, yet traders still believe that day trading works and make money however the only people who make money are - the vendors who sell the systems!
It amazes me that people trust these simulated track records - would you trust a driving instructor who had never passed their driving test? Of course not, so why would you trust a system that had never been tested and proven in the market.
You can make money with a forex trading system - but you need to look longer term, where the data is valid and you can get the odds on your side. Many people are attracted to day trading because they think its low risk - but of course its high risk.
You do have small losses and lots of them and they will eventually erode and destroy your equity. Sure you will get the odd profit by luck however, day traders don't run profits - they cut them breaking one of the fundamental rules of trading:
Run your profits to cover your inevitable losses.
So the next time you see a forex day trading or scalping system with a track record of gains, look to see if it's real and you will find the disclaimer we mentioned at the start of this article.
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