Saturday, July 5, 2008

Forex Day Trading and the Road to Financial Freedom and a

Author: Sonia Kristina

Forex day trading seen as the road to financial freedom by many
traders and the appeal is obvious take small risks and build a
fantastic second income. If you are a day trader not making as
much as you think you can or a novice trader looking to start
read this article...

Fact is day trading and forex scalping will lead you to
financial ruin should you decide to base your forex trading
system on them. The reason will become clearer if you ponder the
problem below and it's a hard one and one day traders cannot
solve no matter how clever they think they are.

Think of how many traders all around the world and how different
they are, in terms of their makeup, in terms of strategies they
use, education they have and the degree to which they are all
influenced by their emotions.

Your task (should you wish to accept it!) is to guess or predict
what they are going to do in a matter of minutes or hours - is
it possible?


In days gone by the floor traders made money day trading and had
an advantage over the bulk of retail forex investors, as he had
the news ahead of the crowd and could react quickly - but today
we all have the information in a split second, in all corners of
the world and the edge has gone and you don't hear of this now
as we live in a world of electronic currency trading.

Daily movement of price is random and as you cannot use support
and resistance in these periods, you can apply technical
analysis and tools that work in longer time frames cannot by
there very nature work on random data - you may as well toss a

You can be lucky for a while - but at the end of the day the
market will sooner or later take your money.

What about all the forex day trading and scalping systems that
have great track records?

Well take a read of the following snippets that normally
accompany these stellar track records and it will make you think
and see them differently

"CFTC RULE 4.41 - Hypothetical or simulated performance results
have certain limitations. Unlike an actual performance record,
simulated results do not represent actual trading.

And the following will also be seen

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".

Would you trade a system which had that written on it? Rather
you than me.

The day trading myth is you make profits but the reality is
different. Forex day trading is the road to ruin not financial

So get the right forex education and get a forex trading
strategy, based on data that can put the odds in your favor and
this will allow you to get on the road to financial freedom.

About the author:


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