Forex Day Trading System - Why Don't Day Trading Systems Ever Make Profits?

Forex day trading systems are popular and there are numerous ones for sale on
the net and they make big claims but never have a track record that's real, its
always simulated in hindsight - why don't they make money lets find out...

Here is the disclaimer you always see and it's not worth the paper it's written
on in terms of helping you make profits:

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".

All the track records you see on day trading systems carry this or a similar
disclaimer.

All it means is - the vendor can make money by having the closing prices to hand
and simulate (make up) an appealing track record. You never see a simulation
lose!
The reason is you, me or my seven year old niece, could make money knowing the
closing prices.

Of course this is why these systems never make money, because in real life you
have to trade not knowing the closing prices!

You have to wonder why any forex trader would buy a forex trading system from a
vendor, when the vendor hasn't got the confidence to trade it himself - but they
do, in huge numbers and are blinded by greed and fear.

So why doesn't day trading work?

Common sense really, you have countless millions of forex traders who all think
differently and this vast diverse mass make the price. You can't possibly hope
to measure what such a diverse base of people will do in a day or less.

Anyone who says they can - ask for their real long term track record to prove
it.

Volatility is random in short time frames and as prices can go anywhere in a day
session, therefore you can never get the odds on your side and never win.

How to Win

If you want to make money at forex trading do not base your forex trading
strategy on day trading. If you want to win either, swing trade and look for
moves lasting between a few days and around a week or long term trend follow.


Both the above can work day trading doesn't.

So leave forex day trading systems to the naïve and greedy traders who think
forex trading is easy - go and get yourself some sensible forex education and
trade longer term for forex success.

By:
Monica
Hendrix

Article
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