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Monday, October 6, 2008

Currency Day Trading - Why Currency Day Traders Lose and a Better Way to Trade

By Sonia Kristina

Currency day trading looks low risk and high reward to most traders but it is impossible to win at it and you will end up losing your equity. This article will look at why you will lose and a better short term method of trading...

So why is currency day trading doomed to failure?

The reason is obvious - all moves in daily time frames are of a totally random nature. You simply cannot judge what millions of traders are going to do in minutes or hours, it's ridiculous.

You Can't Get the Odds in Your Favour!

There are no support or resistance levels that can be trusted, you can't get the odds in your favour and that means a wipe out at some point.

There are however many vendors online who will tell you that you can win at day trading and they even present track records to prove it - but these track records are never real , just a back test.

Simply check the small print and you will find the words "simulated in hindsight" somewhere and that means - they have made no money for real and if you think a simulation, will give the same results in real time think again - it won't.

If you want to trade with a short term strategy you need to get a time frame which gives you valid data and where you can use tools on currency trading charts which will work and the best method is - currency swing trading.

Currency Swing Trading V Day Trading

Currency swing trading systems rely on catching moves from a few days to about a week and they simply trade into overbought and oversold levels. Its simple to understand, gives you plenty of action and can be very profitable.

So forget about currency day trading systems and if you want to trade short term, get the odds on your side and use a swing trading system and you can enjoy currency trading success with it.


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