| I keep reading about day trading and how great it is, | | | | long enough and accurate enough to work with. |
| but the fact is ask for a day trader for a real time | | | | Currencies trade longer term and short term moves |
| track record of profits over a long period of time | | | | are simply random. |
| and you wont get one. | | | | Secondly, ever heard the phrase let your profits run |
| Why? Because day trading is a mugs game - don't | | | | and cut your losses? |
| believe this read on and find out. | | | | Well, that doesn't go with day trading. |
| Day trading doesn't work because there is no way | | | | Day traders enter and more often than not the stop |
| of predicting volatility and direction in short periods of | | | | is to close and bang volatility takes them out, but at |
| time. | | | | least they kept their loss small! |
| Of course, day traders say they can make money, | | | | Now let's look at running profits. |
| but really their making money out of you by selling | | | | When I think of running profits, I think of weeks or |
| systems that don't work. | | | | months (look at a chart of currencies and you will |
| Where's the track record? | | | | see why) it's obvious: |
| You never get a real time track record, however: | | | | Currencies trend longer term as they reflect the |
| You get always get a hypothetical track record that | | | | underlying health of the economy and economic |
| looks good. In fact, they very often look great, but | | | | cycles are long term, as are currency trends. |
| what is a hypothetical track record? | | | | Of course, day traders close profits early, so they |
| Let me explain: | | | | cut their profits and they never cover inevitable |
| It's one that is done in hindsight, KNOWING the | | | | losses. |
| closing price! | | | | Well that's not a smart way to trade. |
| Now could you make money knowing the price in | | | | The Proof |
| advance? | | | | Fact is day trading is a good story but in reality |
| Of course you could. | | | | doesn't add up. |
| My daughter could do that and she's 12, but she can't | | | | If you don't believe me, ask for the real time track |
| trade. | | | | record over a reasonable period of time and you |
| So why doesn't day trading work? | | | | won't get one. |
| Two reasons: | | | | Day trading system vendors make money out of |
| In day trading you can't predict what will happen in a | | | | selling systems, not out of making money for clients. |
| day due to volatility and you don't have data that is | | | | Enough said. |