I read about day trading systems all the time but have never met a day trader who can show me a track record of consistent profits.
Why? Because day trading simply doesn't work, if you want to know why then read on.
1.
Reliable data If you are trading any market with charts you need reliable data to work with and this means data over time a day is simply to short.
Think about it.
The moves I a day are totally random and you may as well flip a coin when trading.
When trading currency or forex markets you need data that has proved reliable in the past to get the odds in your favor.
2.
Trends in currencies Of course there are trends in currencies because the currency of a nation reflects the underlying health of the economy and it's the longer term trends that give you reliable data.
3.
Day trading breaks the fundamental rule of trading Ever heard the saying "cut your losses and run your profits"? Well, in day trading you can certainly cut your losses, but on the other hand, you can never run your profits to cover your inevitable losses.
Transaction costs add up to and add to losses and make profits smaller.
There is no better way to lose your money overtime than by day trading, so why do people do it? It sounds easy, it appeals to greed and people get duped by system sellers and vendors with persuasive sales copy.
Of course, most of the above have never traded in their lives and make money from you by promising to make you rich for a hundred dollars or so.
Fact is they make money from course and system sales and in many instances kick backs from brokers.
There is no more profitable trader for a broker than a day trader.
Most brokers in their profit and loss don't favour in traders winning but how much commission they can make so their happy the vendor is to the only person who won't be is you! If you really are still not convinced ask a day trader selling you a method to give you his audited track record of gains over a reasonable time period - Say three years and see if you get it.
Think you maybe waiting a long time! Don't day trade unless you want to lose your money.
Sure, it can be exciting and fun (if you don't mind losing.
Me I would rather play roulette at the casino.
Trade longer term, get the odds in your favor and give yourself a chance of making money.
Why? Because day trading simply doesn't work, if you want to know why then read on.
1.
Reliable data If you are trading any market with charts you need reliable data to work with and this means data over time a day is simply to short.
Think about it.
The moves I a day are totally random and you may as well flip a coin when trading.
When trading currency or forex markets you need data that has proved reliable in the past to get the odds in your favor.
2.
Trends in currencies Of course there are trends in currencies because the currency of a nation reflects the underlying health of the economy and it's the longer term trends that give you reliable data.
3.
Day trading breaks the fundamental rule of trading Ever heard the saying "cut your losses and run your profits"? Well, in day trading you can certainly cut your losses, but on the other hand, you can never run your profits to cover your inevitable losses.
Transaction costs add up to and add to losses and make profits smaller.
There is no better way to lose your money overtime than by day trading, so why do people do it? It sounds easy, it appeals to greed and people get duped by system sellers and vendors with persuasive sales copy.
Of course, most of the above have never traded in their lives and make money from you by promising to make you rich for a hundred dollars or so.
Fact is they make money from course and system sales and in many instances kick backs from brokers.
There is no more profitable trader for a broker than a day trader.
Most brokers in their profit and loss don't favour in traders winning but how much commission they can make so their happy the vendor is to the only person who won't be is you! If you really are still not convinced ask a day trader selling you a method to give you his audited track record of gains over a reasonable time period - Say three years and see if you get it.
Think you maybe waiting a long time! Don't day trade unless you want to lose your money.
Sure, it can be exciting and fun (if you don't mind losing.
Me I would rather play roulette at the casino.
Trade longer term, get the odds in your favor and give yourself a chance of making money.
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