Author: Kelly Price

Most novice traders are attracted to day trading as they feel it can offer them a living by making small regular profits that can build up into a substantial income over time. Let's look at day trading in greater detail.

The reality of day trading profits is a myth, no day traders make money longer term and if you see a day trading track record of profits, you will however see the disclaimer below.

You need to read it very carefully - here it is:

"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 what use is a track record with this written on it - it's not worth the paper it's written on. It simply means a vendor can make up a track record (showing any profit they like) in hindsight knowing the closing prices and they do.

They know day trading is a good story but that's all it is a story, I love James Bond but don't take it seriously!

No day trading is doomed to failure simply because the logic it is based on is just plain stupid - think about it:

You have millions upon millions of traders transacting trillions of dollars each day and every trader has different skill levels, motivations etc and you simply cannot tell what this vast diverse group will to do in a few hours and it's totally futile to try.

Volatility is random in short daily time spans, you therefore cannot get the odds in your favor and you will never win.
Of course day trading also breaks the cardinal rule of trading which is - run your profits to cover your inevitable losses. Day traders certainly keep losses small but sometimes they hit a profit (day traders get lucky to) but do they run it?

Of course not, they close it out at the end of the day!

So we have lots of small losses, a few small profits and over time, equity gets destroyed - that's the reality of day trading.

If you still don't believe me, try and find a day trading system with a real (not simulated in hindsight) track record, supported by brokerage statements over the longer term.

By the way if you do let me know - I have been searching for one for 25 years and not found one yet.

If you want to enjoy forex trading success - learn to follow the longer term trends, where you can get the odds in your favor and make some great profits and leave day trading to the naïve, or lazy traders.

Concentrate on working with a logical, robust and long term method which will give you forex trading success.

Article Tags: FOREX, Day Trading, Forex Day Trading, Trading System, Currency Day Trading, Forex Scalping System

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