Scalping the Forex Market for Huge Day Trading Profits

by : Kelly Price

Many traders enjoy scalping the forex market and there aim is to accumulate a large number of small profits to build long term profits. Let's look at how to enjoy forex scalping success...

More novice traders than ever, try forex day trading, by buying systems off the net from vendors. The bad news is, all these systems lose and forex day trading is a road to ruin. Before we look at why, lets see why all the track records of profit you see are not what they seem.

Read the disclaimer below carefully and you can see there not real profits at all:

"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 there you have it - there made up paper profits, knowing the closing price history, well that's not hard - the hard bit is trading going forward and not knowing the data!

So all the scalping systems you see have made up track records on paper which have never been traded - check any sold online and you're sure to find the above disclaimer.

So why doesn't it work?

Lets look at the exact reasons why and a better way to make forex profits.

The reason is simple:

There are literally millions of traders, all with different aims, objectives and experience, trading the market and what this vast diverse mass does in a few hours cannot be measured.

All volatility is random and the data cannot be used, you may as well flip a coin.

Even with the above fact in place forex day trading is based on another dumb idea. Taking small losses (wise idea) and cutting profits (dumb idea) of course you need to run your profits to cover your inevitable losses.

When day traders are lucky enough to be sitting on a profit what do they do - Cut it!

So - High percentage of small losses + Small number of small profits =

Equity Wipeout

The logic of day trading will see you lose and many vendors know this but it's a good story and sells forex trading systems and that's why you see so many that have never been traded, accompanied by clever enticing copy, don't fall for them.

If you still believe that forex scalping or day trading makes money, try and find a long term track record and you will be in for a long search!

You can make money trading forex - but you must trade the odds and you can't do that within daily time frames.

Look at any long term chart and you will see trends that last for weeks, months or years.

These forex trends are the ones you need to concentrate on. If you get the right forex trading education and learn currency trading the right way - trading the odds, you can enjoy currency trading success.