redips: Forex Scalping Systems - A Route To Financial Freedom Scalping Regular Small Profits

Forex scalping is a method of trading price moves within daily periods, with the aim of making small profits with low risk. The ultimate aim is to make big long term profits. It's the most popular form of trading for novice traders - let's look at the basics of success using this method.

Unfortunately forex scalping sounds good in theory - but does not work in practice.

There are however numerous vendors claiming it works all with great track records, so how do they do it?

Well the disclaimer below will answer this question, take a read and you will see why these track records are not all they appear to be:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

Find a forex scalping or day trading system online for sale with a track record of gains and your almost certain to see the disclaimer above (Or similar wording) and of course there is then a problem with the track record - in term of you making profits.

The track record has been simulated in hindsight KNOWING the closing prices.

I am sure by 10 year old daughter could beat George Soros, if she could trade knowing the closing prices however, that's not reality - the reality is trading real time not knowing what will happen next is very hard.

So why doesn't forex scalping work?

The answer is easy, the time period is to short to get the odds on your side, all short term volatility is of a random nature and daily ranges cannot be used to get the odds on your side.

The problem is there are traders in every corner of the globe, all with different forex trading systems, strategies, varying levels of expertise, with diverse opinions and you can throw emotions into the mix as well.

So millions upon millions of people trading and you are going to try and calculate what this vast diverse group will do in a few hours or minutes? Good luck to you, if you fancy a try, I have been trading for 25 years and it's a challenge I think is impossible.

Many novice traders simply throw themselves head first into forex scalping without questioning its dumb logic.

They follow systems that have never been traded and then wonder why they lose - don't try it, unless you want to wipe your equity out.

The first thing you need to do is trade longer term, where you can calculate the odds.

You then need to be realistic about what you can make and get the right forex education.

You can make a lot of money in forex trading and in some instances the money made can be life changing; it remains one of the few ventures in life where you can start with small stakes and get rich, just make sure you get the odds on your side first, learn the correct information and you can enjoy forex trading success.

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redips

Tuesday, June 10, 2008

Forex Scalping Systems - A Route To Financial Freedom Scalping Regular Small Profits

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