You will see them all over the net forex day trading and scalping systems offering you a regular income and the potential to earn money from the secrets they have discovered – but here is one secret you won’t find revealed by these vendors. To find out what it is read on.
Forex scalping and forex day trading systems all lose – want the proof? Read the disclaimer below you will see it or a similar one on ALL the systems sold so 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”.
So you have probably gathered what the above means – the forex day trading systems you see with huge regular profits have NEVER been traded. They have been simulated on past data – knowing where prices went.
Well that’s really hard! Could you do it?
Of course you could – anyone could and you could become a millionaire on paper, alas you can’t spend imaginary profits.
Its obvious why day trading is doomed to failure and that’s quite simply the time span is to short and there is no reliable data to work with, prices can and do go anywhere in a few hours or a day. You may as well toss a coin as it’s simply luck that will determine whether you win – but keep in mind luck doesn’t last forever and you will lose eventually.
People buy these systems because there a good story, so is James Bond but I don’t believe its real. Anyone buying one of these mechanical trading systems (if there still tempted) should ask themselves one question:
If the vendor can make so much money with no effort, then why is he selling it for a few hundred bucks or less? The answer is – he knows it doesn’t work but knows there will be another naïve, greedy or lazy trader who will buy it.
Don’t make this mistake.
If you want to make money in forex trading, you can but you must have reliable data and that means forex swing trading, or long term trend following. Do your homework, get the odds on your side and you can make money.
Leave forex day trading to the losers in forex trading and concentrate on being a winner. I have never seen a forex vendor tell anyone this day trading secret – Wonder why!