Day Trading Systems Why You Are Guaranteed To Lose

By: Monica Hendrix
Day trading systems are popular and you see lots of track records of huge profits the problem is none of them have a real track record - there all simulated in hindsight and NEVER traded for real. The reason for this is day trading is based on logic that simply doesn't work.

The problem with day trading is the reliability of the data.

The time span is simply to short and to think that you can predict what millions of traders will do in a few hours or a day is ridiculous.

All these traders are motivated by different goals and the majority are ruled by greed and fear - trying to measure that in a short time span is impossible

Volatility can and does take prices anywhere in a day making support and resistance meaningless and you can never get the odds on your side - Period

Of course if you can't get the odds on your side you are going to lose longer term - it really is that simple.

The fact is every day trading track record you see has a disclaimer similar to the one below which is a standard CFTC one - read it carefully.

"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 we have a track record that really doesn't mean anything at all.

Anyone can do a track record in hindsight knowing the closing prices but the problem with forex trading in the real world is - you have to trade without this key knowledge!

You may ask yourself the obvious question which is - if the system is so good why is the vendor selling it? Or - why don't they show me a track record audited of the trades that they have done.

Well now you know the answer.

Vendors don't normally trade the systems ( and most of them are not traders but simply marketing organizations) because they know day trading doesn't work - but they know hyped copy will sell the system. They simply appeal to the naïve and greedy investor looking for an easy quick buck and he gets a hard lesson from the markets for his trouble.

If you want to trade then you need to have the odds on your side.

This means trading longer term valid data.

You can forex swing trade looking for trades of a few days to around a week - or follow the long term trends, looking for trades that last weeks or months.

The choice is yours on which time frame you choose but you will have the odds on your side which you don't have in forex day trading and will have a chance of enjoying forex trading success.

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