I have been involved in trading forex for 25 years and still amazes me how many people think forex day trading or scalping makes money – it doesn’t its simply the dumbest way to trade and will lose you your money. Let’s examine why.
Countless millions of traders trade trillions of dollars each day and it is impossible to determine what this mass of people will do within such a short time span as a day or a few hours.
Support and resistance levels are meaningless as volatility can and does move prices anywhere in a day session. If you don’t believe me lets look at the proof
The first question you need to ask yourself is if forex day trading really did make money why is there no real track record of gains to show the success? There are thousands of day trading systems promising gains and none of them have a real track record – what do you get?
A lot of hype and a track record that is simulated (not traded for real) in hindsight (knowing the closing prices) Here is the normal one you will see which is a CFTC standard one:
“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”.
Put the above disclaimer on a track record and you can say anything you want and vendors do. They appeal to lazy or greedy traders and the trader buys and gets a guaranteed loss and the vendor makes a guaranteed profit from the sale.
Day trading is simply the dumbest way to trade and sensible knowledgeable people fall for it all the time – maybe the don’t stop to think or simply miss the disclaimers when they buy these systems.
You can if you want to prove me wrong try and find a track record ( that’s real dollars and audited) I saw one day trading system show his bank balance of evidence of his success – success in selling day trading courses, NOT trading that’s for sure!
So if you find one be sure to let me know. I have been looking for a day trader to prove me wrong for 25 years and I Haven’t found a long term track record of profits and know I never will.
So avoid day trading and pick another method that will help you gain currency trading success by trading the odds.