It’s a traders dream, getting in and out of the market each day and earning a few hundred dollars here and there which over time to make huge long term profits.
It’s the aim of an increasing number of traders, but you need to be aware of one important fact.
Day trading does not work and intra day trading in forex markets means the only person who gets scalped is the person trying it – normally of their entire trading account quickly.
So why doesn’t forex day trading and scalping work?
The answer is obvious if you think about it, so here it is:
Each day trillions of dollars are traded by millions of traders who fall into four main groups:
Who are not looking to profit from currency fluctuations but simply looking to hedge their portfolios.
2. Central Banks
Big players, who intervene occasionally to stabilize currency, markets should they believe it necessary.
3. Large traders
Well capitalized individuals and professional money managers.
4. Small speculators
They all think differently and they all have different objectives and different methods and to say you predict what these vast diverse groups or traders will do in under a day or less is laughable.
But people buy into the myth and they lose all the time.
So why do people attempt it?
Well many are attracted by marketing copy that promise riches with low risk, but of course the people who tell them this and sell them the secrets, don’t trade themselves they make their money selling courses.
Other traders think it is a low risk way to trade but if you cannot predict where short term volatility will take prices you will lose – you can’t get the odds in your favour and may as well flip a coin.
So forex scalping does not work and by its nature will never work as volatility can and does take prices anywhere in a day.
Ever seen anyone who sells a course or claims to have made money forex scalping with the proof?
By this I mean a real time track record ( not a meaningless hypothetical track record done in hindsight) no neither have I.
Forex scalping is not a guaranteed way to win, it’s a guaranteed way to lose in forex trading and lose quickly.
Forget the hype of forex scalping and see the reality for what it is, a great way to lose.
If you want to trade currency markets get the odds in your favour by trading in periods where the data can actually help you put the odds in your favour.