Day Trading - The Critical Mistake Made That Causes Losses

By Sonia Kristina

Day trading is very popular with traders and is seen as a way to keep risk low and earn a regular income - but most day traders forget one key point and this causes losses...

The problem for day traders is that all daily volatility is of a random nature.

Therefore, support and resistance levels cannot be used and are meaningless - the net affect of this is the odds are not on your side and you can never win long term.

Think about this key fact and you will see why day traders lose.

Around the world millions and millions of people, all contribute to the price of a currency and they are all individuals with their own unique makeup. They are using different methods, have different skill levels, have different aims and all are governed by greed and fear - this vast mass of people cannot be predicted!

In the short term i.e. hours, prices do NOT take any notice of daily ranges so support and resistance levels are of no help.

Do NOT believe these two misconceptions

1. The Track Records You see are Real

Vendors sell systems and present a track record but forget it being real, check the small print and all you find is a back tested simulation and anyone can make money if - they knew the price in advance but they don't.

These systems simply collapse in real time.

2. Prices Move to a Scientific Theory

This theory is loved by the far out crowd who love Fibonacci numbers and other nonsense - but if prices did move to a scientific theory, then there would be no price movement, as we would all know the price in advance!

Common sense really - but traders still believe scientific theories, despite the fact they lose, strange but true!

How to Win

Forget Forex day trading and scalping and take a longer term approach.

Either swing trade the intermediate trends, or trend follow the long term trends. Here you can get the odds on your side and when you can trade the odds you can win.

So forget day trading and get the right Forex education, trade longer term and enjoy currency trading success.

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