Forex Day Trading – Picking the Best Systems for Profit

The first consideration is the track record that is presented with the day trading system or method. If you see a track record you are almost certain to see this disclaimer which is required by the CFTC read it fist and we explain EXACTLY why rack records that have this disclaimer on need to be avoided. So here it is:

“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 online courses from 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 SHOW”

This disclaimer allows any vendor to make up a track record - there designed with hindsight KNOWING the closing data!

How on earth can you take a track record like this seriously?

Lets face it, anyone who can read and write can make money in hindsight but the problem is we don’t have the benefit of hindsight when we trade – we have to trade not knowing the prices and this is much harder.

If you see any day trading system sold, you will get one of these disclaimers and you should ignore them.

The obvious track record to look for then is a real one but in day trading you wont find one of these ( or if you do let me know) and the reason is day trading simply doesn’t work.

The biggest myth of forex trading is that day traders make money – they don’t.

The reason is really common sense.

You have millions of traders each day trading trillions of dollars in currencies and to say that you can measure what they can do in a few hours is laughable.

All short term volatility is random and prices can and do go anywhere and day traders lose longer term because, they have no chance of getting the odds on their side – PERIOD.

So if day trading makes no money why are there so many systems sold?

The answer is it’s a good story and the vendors who sell these systems (mostly marketing companies or failed brokers) rely on clever copy, to appeal to online courses from and naivety of buyers who don’t think twice before buying, assuming the track records they see, give them a chance of making similar gains – of course they are destined to fail.

The reality of day trading systems is the vendor wins by selling the system, to the mug punter who then loses in the market and wonders why!

Don’t fall for the trap of believing these systems can make you money, or that day trading works – if you do you will lose all your money.

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