By Sacha Tarkovsky
There is no better way to lose your money quickly than to use a day trading system. Forget the hype and look at the reality of why the odds are stacked firmly against you.
Here are the 3 reasons why and a better forex trading system to use.
Before we look at the reasons look at all the day trading systems around the net and ask for a real time track record or trades tracked in real time that make money and you won’t get one.
So why do they lose here are the 3 reasons you will wipe out your equity quickly.
1. No Reliable Data
Trillions of dollars are traded per day and all short and intra day moves are random. Currencies only show reliable trends long term - PERIOD
2. Volatility
You can’t predict volatility in short time frames.
Stop placement, you may as well just guess or flip a coin as prices can go anywhere within short time frame.
You will have small losses and a lot of them, which will wipe you out over time, because day trading systems:
3. Don’t Run Profits
That alien to day trading.
They all talk about scalping the market, but they only make marginal profits ( and that’s when their lucky) and these never make up for all their losses – so in the end its day traders who get scalped, not the market!
So there you have it.
Day trading systems are a great way to lose your money and lose it quickly.
Don’t believe me?
Ask for the REALTIME track record from any vendor and you wont get one.
A Better way to trade.
You can trade short time frames i.e. swing trade but the best way is to follow longer term trends.
Currencies reflect the long term economic fundamentals of the country and these last for months or years and yield the big profits.
You need to run your profits and cut your losses and have a simple system you understand the logic of so you can follow it with confidence.
You can easily construct one yourself see our other articles for information on systems.
You Can Do It Yourself
It’s a lot easier than many people think to build a long term trend following system and once done you could soon be catching the big profits from the long term trends that yield the really big profits.
FREE TRADING PLAN PDF AND OTHER ESSENTIAL TRADER INFO
On all aspects of becoming a profitable trader and for an exclusive forex basics PDF visit our website at http://www.net-planet.org/index.html
Article Source: http://EzineArticles.com/?expert=Sacha_Tarkovsky
Wednesday, February 28, 2007
Saturday, February 24, 2007
Forex Advice - 3 Essential Facts To Consider For Profits
By Tarcha Tarkovsky
You maybe new to trading or not doing so well, so you decide you should take some forex trading advice and by it from a vendor.
The copy looks tempting but should you part with your hard earned cash? Let’s look at 3 essential facts you should consider when taking FOREX Advice from anyone.
1. Does The Vendor Have a Track Record
By this I mean a real track record of real forex profits, supported by account statements. This will allow you to strike over 90% of the people selling FOREX advice off your list. Fact is most come with vague testimonials of the odd profit or a hypothetical track record. These are meaningless. Anyone can have the odd lucky trade and anyone can make a track record profitable if they know the price history. If you take FOREX trading advice you want some proof the vendor has made some profits and put their money where there mouth is rather than relying on making money out of you from selling the advice.
2. Make sure you understand the methodology
By this I mean make sure you know the logic the advice is based upon. One of the main requirements for following a trading system through losing periods is discipline. If you don’t understand the forex advice you won’t have the discipline to follow it and will throw in the towel early.
3. Make sure it suits your trading personality
Some traders like high returns and can tolerate big swings in equity against them others like a more gentle way of trading. When taking forex advice look at the track record and look at the worst drawdown i.e you had started following the advice at the worst time and see if that fits with your methodology. A system may make 90% in a year but if you have a 60% drawdown and can’t tolerate this risk you will probably throw in the towel early.
Finally
Use common sense when taking forex advice from anyone and make sure that their reputable and offer advice assistance and most who do will offer you a satisfaction or money back guarantee. There is some good forex trading advice out there and if you use the above criteria to choose you will get rid of the bulk of advice which is normally sold by book sellers who have no chance of making money.
MORE FREE BETTER TRADING INFO
On all aspects of becoming a profitable trader including free articles, features, downloads and for a exclusive Gann Trading Course visit our website at http://www.net-planet.org/index.html
You maybe new to trading or not doing so well, so you decide you should take some forex trading advice and by it from a vendor.
The copy looks tempting but should you part with your hard earned cash? Let’s look at 3 essential facts you should consider when taking FOREX Advice from anyone.
1. Does The Vendor Have a Track Record
By this I mean a real track record of real forex profits, supported by account statements. This will allow you to strike over 90% of the people selling FOREX advice off your list. Fact is most come with vague testimonials of the odd profit or a hypothetical track record. These are meaningless. Anyone can have the odd lucky trade and anyone can make a track record profitable if they know the price history. If you take FOREX trading advice you want some proof the vendor has made some profits and put their money where there mouth is rather than relying on making money out of you from selling the advice.
2. Make sure you understand the methodology
By this I mean make sure you know the logic the advice is based upon. One of the main requirements for following a trading system through losing periods is discipline. If you don’t understand the forex advice you won’t have the discipline to follow it and will throw in the towel early.
3. Make sure it suits your trading personality
Some traders like high returns and can tolerate big swings in equity against them others like a more gentle way of trading. When taking forex advice look at the track record and look at the worst drawdown i.e you had started following the advice at the worst time and see if that fits with your methodology. A system may make 90% in a year but if you have a 60% drawdown and can’t tolerate this risk you will probably throw in the towel early.
Finally
Use common sense when taking forex advice from anyone and make sure that their reputable and offer advice assistance and most who do will offer you a satisfaction or money back guarantee. There is some good forex trading advice out there and if you use the above criteria to choose you will get rid of the bulk of advice which is normally sold by book sellers who have no chance of making money.
MORE FREE BETTER TRADING INFO
On all aspects of becoming a profitable trader including free articles, features, downloads and for a exclusive Gann Trading Course visit our website at http://www.net-planet.org/index.html
Subscribe to:
Posts (Atom)