Day Trading - Will Wipe Your Trading Account Out Quickly!

Day Trading - Will Wipe Your Trading Account Out Quickly!

Author: Kelly Price

One of the biggest puzzles of currency trading for me is that anyone takes day trading seriously as a way to enjoy success. You can't win at it and will lose all your money, the reason is obvious and is the subject of this article.

You may be thinking that if no one wins, why are there so many profitable day trading systems for sale?

The answer is:

There all made up in hindsight and simply simulated on paper but have never been traded for real. If you ever see a track record for a forex day trading or scalping system which claims extra ordinary profits, then check for the disclaimer:

"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".

Keep in mind "if it looks to good to be true it probably is" in forex trading if it looks to good simply look for the disclaimer! Your sure to find it!

Of course we can all make money when we know the prices and can trade backwards but you don't have that luxury in forex trading, you have to trade not knowing the closing prices and trade forwards.

The people selling these systems know they wont make money in real time forex trading (otherwise they would trade them themselves) but they know that their buyers will not read the disclaimer to closely, as its hidden away at the bottom of the copy and difficult to see and find!

They then make up some exciting copy to sell it and promise the buyer unlimited riches a regular income etc etc. The novice trader buys and the reality of course doesn't live up to the hype

They get a guaranteed profit selling a useless trading system and the trader takes the loss.

Now why doesn't it work - well it's obvious really:

All short term volatility is random in a day or less support and resistance is meaningless and you have no chance of winning because you cant get the odds on your side.

It always makes me laugh, when I see systems that claim you can make a living and scalp 100 ticks a week etc - its lies you can't.

You have countless millions or tens of millions of traders, all over the world that make the price, all have different aims, objectives, skills and there all governed by emotions. You simply cannot measure what this vast diverse, volatile, group will do in just a few hours.

Its amazing how sensible people in other walks of life, think they can make money day trading, the logic it is based upon doesn't add up and it is clear to anyone it doesn't work and the facts prove it.

Want the proof? Well here it is:

Ask any forex trader or forex system vendor who claims that forex day trading works, to show you their track record over the long term of gains, audited with account statements.

A word of warning here - if you do decide to try and find one, get ready for a long a fruitless search.

Forex day trading is a loser's game avoid it and trade longer term, where you can get the odds on your side and pile up some forex profits longer term.

Article Tags: FOREX, Day Trading, Forex Day Trading, Trading System, Currency Day Trading, Forex Scalping System

Article Source: http://www.articlesbase.com/currency-trading-articles/day-trading-will-wipe-your-trading-account-out-quickly-343950.html

Get free essential trading Pdf's on catching the big profits from the big moves and more on forex trading success visit our website at: http://www.forextrendfollowing.com