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Wherever you go on the nternet you see them day trading syst ms promising you a low risk way to m ke a fortune however ask any of th m to produce a real time tr ck record and you wont get ne. Because day trading simply is not an asy way to make money its an asy way to lose all your m ney. Heres why. Day trading is big b siness and its a great story. The st ry is that you can keep l sses small and make profits all the t me by scalping the market and b ild a huge fortune over time all for round $100 or so! The reality of c urse does not match the hype. L ts look at the facts and why day tr ding does not work and will see you l se your cash. 1. The Odds are not on y ur side Normally day trading relies on try ng to predict what will happen in a day s ssion. How can you do this? You c nt. No one can predict what w ll happen in such a short t rm time period, its the equivalent to fl pping a coin. To trade forex m rkets you need reliable data and day tr ding cant give you this. 2. Losses are k pt small but You have a h ge chance of being stopped out. J st like currency movement is unpredictable in a d y, so to is volatility. Day tr ders normally have small losses on tr des but they have a lot of th m. Now that by itself is not bad ts a rule of successful trading.
3. Profits cant cover losses Day tr ding systems never run profits for a l ng period of time. They want to get in and get out and sc lp a profit. Now if there l cky to get one (and even day tr ders get lucky) it can never c ver the losses they have and th y have a lot of those. So h re is what day trading gives you Sm ll losses + High Odds Of B ing Stopped Out + Small Profits + Low Ch nce of Success = Loss of Eq ity The above equation neatly sums up why n ver can win and if you d nt believe it try this simple t st: Ask any day trader who s lls a system to give you a tr ck record of real time profits w th real dollars ( not a hyp thetical track record ) and you w nt get one. Most day trading v ndors have the sense not to tr de and make money by selling b oks its a lot easier to m ke money that way.
The article Day Trading Making Big Profits The Easy Way was Submitted by Kelly Price through Articles.GetACoder.com network. Here's the additional information: MORE FREE BETTER TRADING INFO On all spects of becoming a profitable trader ncluding articles, features and an exclusive Gann Trading Course visit our website at http://www.net-planet.org/index.html
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