Forex scalping systems are promoted as a way to make a regular income and build huge profits but none of them deliver profits - why? One simple reason and its enclosed in this article.
Forex scalping - "earn 300 per day", "predict tops and bottoms with pinpoint accuracy", "earn 5,000 a month" etc
Those headlines always make me laugh and you always see a graph that goes up and up but of course when you invest your Investment goes down and you get wiped out. Lets look at first at these track records and why forex scalping systems can never work due to the logic their based on.
Any forex day trading or scalping track record will carry a disclaimer which will be or similar to the following one:
"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".
What use is a track record with this written next to it?
It simply means the track record can be made up and they are don't fall for the hype of the advertising copy, there is no proof of real profits, its all simulated in hindsight and that's not hard.
So why Doesn't Forex scalping work?
Its common sense to anyone really, countless millions of traders all with different aims and motivations and all different make up the market price. It is ridiculous to try and figure out where this group of traders will push prices in just a few hours and this is easy to prove.
Any volatility in short time frames is random by its nature and prices can and do go anywhere. You have no way of getting the odds in your favor and if you can't get the odds in your favor, you will lose - it's as simple as that.
The theory of forex scalping and day trading is fundamentally flawed.
So why do people buy the theory despite the fact the evidence is there for all to see - it makes no money?
Greed and naivety.
Vendors put about a good story, supported by meaningless simulated track records. Its all in the advertising.
The novice forex trader swallows the story, trades and takes a loss and the vendor walks away with a guaranteed profit.
Nice and simple.
Why risk trading your own system ( you will notice no vendor has a real one to support his claims) and why would anyone trust a forex trading system a vendor sells, if they don't trade it themselves?
Leave forex scalping and day trading to the dreamers and the losers and concentrate on trading the odds and looking at longer time frames.
In forex trading you can make big gains - but you need to avoid the myths and profits via forex scalping is one of them.
Concentrate on getting the right forex education.
If you do this you can enjoy currency trading success.
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