Forex Trading Mistakes

By: Sacha Tarkovsky

FOREX Day trading is more popular than ever as traders seek to make big consistent profits from scalping the market and building a regular income.

Here we will look at the common day trading mistakes people believe will make them money and why they lose.

Before we start consider this fact.

You will see numerous day trading systems with attractive copy telling you how much money you will make from online forex trading yet, the most important part is missing.

You NEVER get a real time track record of profits!

You get a hypothetical one ( but that is designed knowing the closing prices so is of no use ) but never a real time one the vendor has traded and made money out of.

Why?

Because these guys don't make money from FOREX day trading, they make money selling systems and their smart enough to know day trading by its very nature doesn't make money.

There are numerous mistakes that people make that make them think they can make money so here they are

1. They believe hyped sales text and hypothetical track records

This proves nothing.

Anyone can do a track record knowing the closing prices even my daughter and she's ten.

If you believe sales copy and don't check the facts your asking for trouble.

2. You can predict support and resistance in short time frames

All volatility is random so support and resistance levels, pivot points etc are meaningless - its laughable that people think their valid.

3. Successful technical indicators wont work

Technical indicators that work in other time frames don't work in day trading as they have no reliable data.

It doesn't matter how good the indicator is - if it has no reliable FX data its doomed to failure and day trading data cannot be used, so these indicators fail.

4. Cutting losses and running profits

Even if the data was reliable (and we already know its not) then at best trading is an odds game and your losses need to be small and you need to run your profits to cover them.

This is true of trading FX in any time frame - you will always have losses that just life and trading.

FOREX day trading does not even achieve this.

Sure your losses are small, but you can never run your profits to cover them.

Day trading by its very nature only holds profits for a short time and the idea of scalping is laughable - The market doesn't get scalped the trader does for all his equity.

Most FOREX day trading systems are sold by failed brokers or marketing organisations that don't trade their systems - they know it's a good story and it sells.

It makes them lots of money and the trader takes a beating from the market, but their happy as they have the income from their system sales.

If you are considering FOREX day trading doesn't!

It's a big mistake and will ensure you lose your equity quickly.

Don't fall for the hype look at the facts and save your money.

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