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Forex Day trading System - How to Be Successful with Them |
Success With Currency Day Trading Systems
More novice traders try forex day trading or scalping than any other method and there are numerous systems out there you can use and they all have great track records - but which ones do you choose?
Here we will look at forex day trading systems in more detail.
One of the biggest myths of forex trading is that day trading systems make money longer term - they don't, forex day trading is based on flawed logic and cannot work by its very nature. Before we discuss why, lets look at why the track record you see with these short term currency trading systems are not all they seem.
Read the disclaimer below carefully, you will see it or similar in the small print on day trading systems that give track records - 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".
A disclaimer like the above, allows vendors to make up track records in hindsight knowing the closing prices and produce any figures they want and of course they do!
The problem is obvious:
The system has not been traded for real and of course trading without knowing the closing prices is a lot harder.
We can all make money in hindsight - if I knew tomorrow's closing price today, I would be a millionaire but I don't.
The fact is day trading or forex scalping, simply does not work and the reason is obvious:
We have millions of traders trading trillions of dollars and to say what this vast diverse group of traders is going to do in just a few hours is nonsense.
All volatility in daily time frames is random and prices can and do go anywhere in a day, so support and resistance levels cannot be used and you can't get the odds in your favor. You will hear a lot of people saying that human nature is constant and there is a scientific law that dictates where prices go and the names of Elliot wave, Gann and Fibonacci are often quoted. None of them have a scientific theory of the market, if they did their methods would work all the time and everyone would use them, know the price in advance and there would be no market.
Forex day trading systems appeal to greedy naïve traders, who don't think and simply buy these systems, swallow the advertising copy and don't think to question a simulated track record. They then lose and wonder why!
You can make money in forex trading and you can enjoy currency trading success - but you need to trade longer term and you need to use valid data, this will allow you to trade the odds and if you have the odds on your side, you can win.
If you want to learn currency trading correctly get the right forex education and ignore day trading and don't be tempted by a forex day trading system, as you will lose your money - it really is that simple.
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