There is no better way to lose your money quickly than to use a day trading system. Forget the hype and look at the reality of why the odds are stacked firmly against you.
Here are the 3 reasons why and a better forex trading system to use.
Before we look at the reasons look at all the day trading systems around the net and ask for a real time track record or trades tracked in real time that make money and you won't get one.
So why do they lose here are the 3 reasons you will wipe out your equity quickly.
1. No Reliable Data
Trillions of dollars are traded per day and all short and intra day moves are random. Currencies only show reliable trends long term - PERIOD
2. Volatility
You can't predict volatility in short time frames.
Stop placement, you may as well just guess or flip a coin as prices can go anywhere within short time frame.
You will have small losses and a lot of them, which will wipe you out over time, because day trading systems:
3. Don't Run Profits
That alien to day trading.
They all talk about scalping the market, but they only make marginal profits ( and that's when their lucky) and these never make up for all their losses so in the end its day traders who get scalped, not the market!
So there you have it.
Day trading systems are a great way to lose your money and lose it quickly.
Don't believe me?
Ask for the REALTIME track record from any vendor and you wont get one.
A Better way to trade.
You can trade short time frames i.e. swing trade but the best way is to follow longer term trends.
Currencies reflect the long term economic fundamentals of the country and these last for months or years and yield the big profits.
You need to run your profits and cut your losses and have a simple system you understand the logic of so you can follow it with confidence.
You can easily construct one yourself see our other articles for information on systems.
You Can Do It Yourself
It's a lot easier than many people think to build a long term trend following system and once done you could soon be catching the big profits from the long term trends that yield the really big profits.