Cftc Forex Rules
Spot Forex – Why you will never make money Trading Day
In the long run will not make money if you try day trading currency, and can never get the odds in your favor however more traders try day trading than perhaps any other method. Here's why can never work – and still remains so popular.
Day trading does not work simply because all short term volatility is random and prices can and should go anywhere in a day session. If you try to use support and resistance they will lose – because volatility is random and these levels are of no use whatsoever – This should be obvious to anyone – but currency traders do not see days.
You have millions of traders trading trillions of dollars and say that you can measure what this huge mass of people will do in a short period of time is absolute nonsense.
Why is trade so days popular?
It is simply a good story and appeals to the greedy and gullible investors are misled by companies that market systems sale of the trading day, with a history that shows the incredible benefits, but they all have one problem – none of them have a history of that are real, all are simulated to know the closing prices!
How hard is that?
Anyone morning would be a millionaire if they knew the price today – but the Forex Market is a bit more difficult.
When you see an incredible earnings history and look at the fine print normally be a warning CFTC rule like this one
"CFTC Rule 4.41 – Hypothetical or simulated performance results have certain limitations. Unlike a record of results real, simulated results do not represent actual trading. Also, since trades have not been executed, the results can take-or-plus compensation for the effects, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that are designed with the benefit of hindsight. No representation is rendering any account or likely to achieve profits or losses similar to those shown. "
Put this limitation in a path and a seller can say what they want and of course they do. They never lose track records, in retrospect, but of course in the brutal world of real trading destroyed.
Day traders think that trading within a day reduce the risk – but of course there is no point of having a small risk to your stop if you have a high probability that it is given!
Day traders get great small amount of loss than just eating in and destroy their equity.
If your lucky to get a profit, they take that of course quickly breaks the fundamental rule of trading – run your profits to cover their inevitable losses.
Day traders lose and wonder why but the reason is obvious – it simply can not get the odds in your favor – PERIOD
The way to win
If you want to win at forex trading you should get the odds in your favor and this means from reliable data. If you like the thrill of trying to swing trading forex trading, if more patients are treated following long-term trend.
Both the above will allow the trade and enjoy the chances of success of foreign exchange in order to address these methods and do not try day trading currency.
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