| FOREX day trading is more popular than ever and | | | | This is of course why day trading does not work. |
| online you can get a huge amount of e-books and | | | | Trillions of dollars are traded each day by millions of |
| FOREX day trading systems, which promise you | | | | participants and to say you can predict where prices |
| regular income and huge capital gains. | | | | will go in a matter of hours is laughable. |
| Here we will look at how to separate out the myth | | | | The only people who take notice of support and |
| and see the reality in relation to day trading and how | | | | resistance are losing day traders. |
| to win in the markets. | | | | Volatility can and does, take prices anywhere in a |
| Myth - Day Traders Have Profitable Real Time Track | | | | day and levels of resistance and support are |
| Records | | | | constantly broken handing day traders loses. |
| Reality | | | | Myth - Day trading restricts losses and runs profits |
| FOREX day traders don't make money and the proof | | | | Reality |
| is that of all the e-books and systems for sale, you | | | | As day traders work with meaningless data they |
| never see a real track record of real profits made in | | | | can't win of course but many think that day trading |
| the market over the longer term. | | | | restricts risk, but it actually creates it. |
| What you do get is a hypothetical track record, but | | | | Losses are small, as they are near daily support or |
| these are not worth the paper their written on. | | | | resistance ( which get broken frequently as the data |
| Why? | | | | is meaningless) which simply ensures they get |
| Quite simply because their devised in hindsight - | | | | stopped out with a loss albeit a small one. |
| knowing the closing prices. | | | | Running profits? |
| Well, if we all knew tomorrow's prices today we | | | | Forget this with day trading! |
| would all be millionaires! | | | | They are looking to scalp a few ticks or close |
| Hypothetical track records are simply made up and | | | | positions out quickly. |
| have no bearing on how successful you will be | | | | The result is they can never run profits to cover the |
| trading the system. | | | | huge amount of small losses they get. |
| Myth - Day traders trade their own systems | | | | The biggest myth of currency trading is that day |
| Reality | | | | traders make money they don't. |
| Most FOREX day trading systems are sold by failed | | | | They lose and system sellers laugh all the way to the |
| brokers, or marketing people who have the sense | | | | bank. |
| not to trade the system themselves. | | | | The proof of the above is: |
| They don't need to, as they make money anyway. | | | | If you ever ask a day trader for a long term track |
| They can simply rely on writing some marketing copy | | | | record of real profits - Try it and see if you get one. |
| to appeal to the greed of investors, then sell them | | | | If you want FOREX education avoid day trading and |
| the system. | | | | learn FOREX Trading methods that actually give you |
| They get their fee and the FOREX trader gets the | | | | a chance of winning. |
| loses - fair deal for them! | | | | Day trading is simply one of the best ways to lose |
| Myth - You can predict short term volatility | | | | your money in online FOREX trading, so don't fall for |
| Reality | | | | the myth understand the reality. |