Forex Day Trading - a Guaranteed Way to Lose Money Fast

By: Kelly Price

Forex day trading is the most popular method for new traders to try and it is a guaranteed way to lose money quickly. Why? Because the logic that forex day trading is based upon simply doesn't add up - here's why you are destined to lose if you day trade.

Firs of all lets look at all those forex day trading systems which make big claims on the net with their supposed track records.

If you see a day trading track record look for the disclaimer below:

"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".

The above is the most common as its standard CFTC one. As you can see the track record means nothing as it's never been traded! It's been done knowing past data and is simply a hypothetical simulation.

Unfortunately, forex trading is not that easy we have to trade not knowing the prices in advance.

You only ever get a simulation because these vendors don't have the confidence to trade their own system, as they know they dont work!

They want to make money from sales, while a mug trader loses. The vendor has a guaranteed profit and the trader a guaranteed loss.

So why doesn't day trading work?

Well its pretty obvious if you think about it - you have millions of traders, trading trillions of dollars and to say you can gauge what this vast diverse trading base will do, in a few hours is ridiculous.

All daily volatility is random and prices can end up going anywhere and they do.

Support and resistance levels in daily time frame are useless and you would have as much success flipping a coin.

Day trading is simply a great way to lose money long term you don't have the odds in your favour and you wont be lucky for ever - leave forex day trading to the naÃ?ve or greedy traders and concentrate on trading longer term, where you can trade the odds and win.

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