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Day Trading Methods - Who Makes Big Profits at Day Trading?

 


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If you look at the amount of day trading systems and methods on the web you would think there would be a lot of people making a lot of money.

The fact however is day trading methods don’t work and day trading is NOT a way to make profits, its a way to wipe your trading equity out quickly.

If you want to know why you wont win read the facts

Firstly, I have been involved in financial trading for 20 years and never seen a day trader with a track record of consistent profits.

When you buy a method from a vendor they normally try and persuade you with a few testimonials of odd winners (day traders sometimes get lucky ) or a hypothetical track record of great gains.

Let me explain what a hypothetical track record is. It’s a record made in hindsight knowing the closing prices so it’s hardly surprising you never see one that losses.

Ask anyone selling a day trading, method for the real time track record over the long term and you won’t get one, simply because day trading doesn’t make money.

Lets look at why.

1. Time Frame is to short

The time frame is simply to short. You cannot predict what will happen in a single day and prices could go anywhere. You may as well flip a coin.

2. Volatility in short time frames

Again is random.

Day traders like to place fairly tight stops and normally they get taken out by volatility.

3. You need to run profits

Part of successful trading is to “ Run your profits and cut your losses"

In day trading methods you certainly can cut your losses ( and you will have a lot of them) but running profits is totally alien to day traders.

They normally want to scalp the trade for small profits and get out quickly.

The net result is they have a few profits that are marginal and never make up for the huge amount of losses they take.

The reality is:

Currency markets reflect long term economic conditions and trend longer term.

Each day trillions of dollars are traded in the markets and to try and predict price direction and volatility in a day, or a few hours is not going to work.

The real test of any trading method (not just a day trading method) is if it makes profits over the longer term.

As we said earlier ask anyone selling a day trading method for a profitable real time track record and you wont get one.

MORE Trading PDF REPORTS AND FEATURES

On all aspects of becoming a profitable trader and your free forex PDFs visit our website at http://www.net-planet.org/index.html

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