A lot of people go into forex day trading thinking that it is profitable. Unfortunately, day trading profitability simply does not exist. It does not make you money at all.
Yet, millions of traders are falling into this trap, moved by different reasons, influenced by a variety of emotions. Trillions of dollars are being traded everyday by these people who believe they can get something out of day trading.
What traders usually do is bend their system in order to fit the data into that system -- a process termed as curve-fitting. Then again, you have to know that once traded, this data may actually change its form and this can translate to greater losses for you.
One other thing you should know is that forex brokers may take advantage of ones lack of technical know-how in forex trading and the greed that often leaves one desiring for more money. Capitalizing on these, they advertise the alleged benefits of day trading using made-up track records.
Here are some truths about forex day trading:
- Forex trading is risky business. In order to win, you must have all the odds work to your advantage.
- Day traders usually no longer let their profits earn more money for them because the moment they earn, they readily take their profit to themselves.
You can never win with forex day trading. Don't be misled into believing that you can because the truth is, you simply can not. If you really want to earn, try your hand at forex swing trading instead.