More new forex traders try forex scalping methods or day trading than any other methodology. This article is all about the facts you need to know so lets get started on our forex scalping for beginners review of the basics.
The first and most important point is - it doesn't work!
You will see lots of vendors on the net try and entice you with great copy and track records which look just too good to be true and they are - Why?
Because none of them have been traded in real time - all are simulated in hindsight KNOWING the closing prices. If you look at the disclaimer you will see the one below (standard CFTC) or similar - read it carefully:
"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".
Put this disclaimer of a forex scalping system and you can say anything you like and make up any track record you like - it's as simple as that.
Forex scalping or day trading is a good story but that's all it is - it won't make you money,because the underlying logic is flawed.
Consider this:
You have millions of people trading trillions of dollars and to try and say what this vast group of people all with different investment objectives and subject to their emotions will do in a few hours is rubbish.
Traders are not logical and price volatility in a day or a few hours is totally random.
Trying to base your forex trading strategy on trying to find order in these short periods is simply doomed to failure.
Volatility is daily time periods is random -you can't get the odds on your side because support and resistance levels wont help you and you may as well base your trading and marketing timing on flipping a coin.
Don't believe me?
Try and find a forex scalping or day trading system with a real long term track record of profits and you won't find one - if you do let me know I have been looking for over 25 years.
If you want to win at forex trading and enjoy currency trading success you need to use longer time periods that will allow you to get the odds on your side with your forex trading system and that means forex swing trading or long term trend following.
This will allow you to trade the odds and enjoy forex success long term.
Today, traders are looking for easy ways to make money and of course there are none and you wouldn't expect there to be with the profits you can make - but if you work smart and get a system that can help you execute your forex trading signal in line with the odds and you can win.
So their you have it - our view of forex scalping for beginners and our view is don't try it, or you will lose all your money quickly.
About the author:
PROFESSIONAL FOREX TRADING COURSE and FREE ESSENTIAL TRADER PDFSFor free 2 x trading Pdf's with 90 of pages of essential info and an exclusive C urrency Trading Course visit our website at: http://www.learn currencytradingonline.com |
