Lots of people will tell you a low risk high reward way to trade is to use forex scalping or day trading methods but the logic is totally flawed and you can try as hard as you like but you will eventually wipe yourself out - here's why. . .
Think about how many millions and millions of people are trading forex. Now, think about how different they all are and the different reasons their trading. Now think how different they are in terms of emotional makeup from greedy traders, fearful traders, logical traders, cool traders the list goes on and now think.
This is a vast diverse group, of countless millions and you are going to have to execute correct market timing, on what they might do, in just a few hours or minutes.
Do You Really think that's possible?
Of course its not - but many traders try and their generally tempted by gurus and mentors, selling systems with back tested track records - In simple terms I mean made up in hindsight, in the real world though these systems get blown out the water.
Of course daily support and resistance levels cannot be used, because there not valid and volatility in a day is purely random. So you have no levels you can key off and have confidence in. That means you can use the cleverest systems you like, work as hard as you like, but you are going to lose, because there is one thing you don't have on your side and that's the odds.
If you cannot calculate the odds (and with volatility being random in daily time frames this is impossible) you are going to lose.
If you don't believe me, then do a little test and try and find a vendor with a real time track record of day trading profits, over a period of 3 year, that has made money.
If you do attempt it and you do find one, let me know. I have been looking for 20 years and never found one and don't think the odds of you finding one are that great.
If you want to win at forex, avoid forex day trading or scalping and use forex swing trading or trend following, where you can calculate the odds and therefore have a chance of achieving currency trading success.
NEW! 2 X FREE ESSENTIAL TRADER PDFS ESSENTIAL FOREX TRADING COURSE
For free 2 x trading Pdf's and more on Forex Trading Success and an exclusive risk free Forex trading Course visit our website.