| If you look at the amount of day trading systems | | | | anywhere. You may as well flip a coin. |
| and methods on the web you would think there | | | | 2. Volatility in short time frames |
| would be a lot of people making a lot of money. | | | | Again is random. |
| The fact however is day trading methods don't work | | | | Day traders like to place fairly tight stops and |
| and day trading is NOT a way to make profits, its a | | | | normally they get taken out by volatility. |
| way to wipe your trading equity out quickly. | | | | 3. You need to run profits |
| If you want to know why you wont win read the | | | | Part of successful trading is to " Run your profits and |
| facts | | | | cut your losses" |
| Firstly, I have been involved in financial trading for 20 | | | | In day trading methods you certainly can cut your |
| years and never seen a day trader with a track | | | | losses ( and you will have a lot of them) but running |
| record of consistent profits. | | | | profits is totally alien to day traders. |
| When you buy a method from a vendor they | | | | They normally want to scalp the trade for small |
| normally try and persuade you with a few | | | | profits and get out quickly. |
| testimonials of odd winners (day traders sometimes | | | | The net result is they have a few profits that are |
| get lucky ) or a hypothetical track record of great | | | | marginal and never make up for the huge amount of |
| gains. | | | | losses they take. |
| Let me explain what a hypothetical track record is. | | | | The reality is: |
| It's a record made in hindsight knowing the closing | | | | Currency markets reflect long term economic |
| prices so it's hardly surprising you never see one that | | | | conditions and trend longer term. |
| losses. | | | | Each day trillions of dollars are traded in the markets |
| Ask anyone selling a day trading, method for the real | | | | and to try and predict price direction and volatility in a |
| time track record over the long term and you won't | | | | day, or a few hours is not going to work. |
| get one, simply because day trading doesn't make | | | | The real test of any trading method (not just a day |
| money. | | | | trading method) is if it makes profits over the longer |
| Lets look at why. | | | | term. |
| 1. Time Frame is to short | | | | As we said earlier ask anyone selling a day trading |
| The time frame is simply to short. You cannot predict | | | | method for a profitable real time track record and |
| what will happen in a single day and prices could go | | | | you wont get one. |