I'll let you in on a little secret, very few people believe it and even less will admit to it. Most forex day trading traders Lose Money.
Do you know why? Most traders trade based on their emotions! I know it's hard to believe but I've seen more than my fair share of traders that act on emotion and justify it using figures! You don't need to be a genius to know that that is the fastest way to your early bankruptcy.
But this need not be the case for you. The forex day trading market allows you to grab fistfulls of dollars in the biggest financial market of all where 1.5 trillion dollars a day is moved between traders.Your take out of this constant ever flowing torrent of cash will not even make any sort of dent in the market or torrent of cash.
This flow of money is constantly being fed in, circling around, looking for new owners. Constantly being transferred... from the people who don't know the rules, to the people who do know how to read forex charts.
The fact is, most amateur' investors rack up sizable losses and all that forex day trading capital goes to the people who know what they're doing the trick is to invest just like the great investors do (and not like everybody else)
The problem with most new traders is that they lose their forex day trading account before they even get a chance to understand how the market works. I know - I have been there:
Dont let emotion control your trading it only leads to failure!
With this new found understanding I hit the books. I studied the basics of currencies all over again. I went to libraries, I talked to mathematicians, I even bought other e-books about FOREX trading. All of these sources provided hypothetical models of how currencies should move, however, none of them provided the hard and fast answer that I wanted.
The worst part was all the rest of the e-books. They sold absolute rubbish! Almost all of the GURU's were not even traders. They would even go so far as to say how much you could gain if you leverage this and you leverage that. I think that is purely irresponsible of them to sell the idea of leveraging to novice traders.
That's it. These people are CORPORATIONS. They are not there to help you. All they want to do in the end of the day is to make a sale; they have no secrets to offer or anything that is even worth a penny.
When you begin to trade trading for more than 2 hours a day is dangerous. I'm sure you've seen some day traders glued onto their computer screens for hour on ends waiting for that exact moment to exercise their trade or looking for trends here and trends there.
I think this is absolute madness and contributes enormously to the trader getting emotional about their trades.
Use the framework that I reccommend and if you follow it, you can turn a profitable Ten PIP trade almost every single day with only 1 hour of trading. It's that simple.
To get going you need a forex chart and an online forex broker and my forex day trading system.